Cost and Management Accounting (CMA)

 UNIT 4  5 Marks : ratio analysis- meaning, uses, limitations mixed ratios 10 Marks Types of ratios what is an accounting ratio? what are the uses of accounting ratios? 1Q) RATIO ANALYSIS-USES, LIMITATIONS         Ratio analysis is referred to as the study or analysis of the line items present in the financial statements of the company. It can be used to check various factors of a business such as profitability, liquidity, solvency, and efficiency of the company or the business. Ratio analysis is mainly performed by external analysts as financial statements are the primary source of information for external analysts. Analysts very much rely on current and past financial statements to obtain important data for analyzing the financial performance of the company. The data or information thus obtained during the analysis helps determine whether the financial position of a company is improving or deteriorating.   Use of Ratio Analysis Ratio analys...

 UNIT 3 SYNOPSIS: Financial statement analysis methods/tools of analysis and interpretation- comparative statements, common size statements, trend analysis 1. Define financial statement analysis. Explain the objectives and powers of financial statement analysis  2. Briefly explain comparative analysis and common size analysis * 3. Trend analysis (5M)** 4. What is the need for analysis of financial statements? 1Q) Financial statement analysis:  Financial statement analysis is the procedure of analysing an enterprise’s  financial statements  for making decisions for purposes and to understand the comprehensive health of an organization. Financial statements document financial information, which must be evaluated through financial statement analysis to become more helpful to shareholders, managers, investors, and other interested parties. To put it in other words, the term ‘financial analysis’ comprises both ‘analysis and interpretation’. Tools of Analysis of Fin...

 UNIT 2 SYNOPSIS: Materials control OR Inventory control - Selective control , ABC analysis Methods of  pricing issues - LIFO, FIFO, Weighted average ( including problems) labour: control of labour cost - time keeping, time booking, idle time Methods of remuneration labour incentives schemes 1Q) INVENTORY CONTROL - SELECTIVE CONTROL, ABC ANALYSIS             Material control aims at eliminating and minimizing all kinds of wastes and losses while the materials are being purchased, stored, handled, issued/ consumed. A number of techniques are used in planning, procuring, and holding stages of material which help in exercising and effecting material cost control.       Selective control Selective Inventory Control is an essential part of Materials Management. Selective inventory control is emphasized on variations in methods of control from item to item based on a selective basis. We can not apply uniform control since it’s e...