6.
----------------- is a technique of analysis to study the effects of costs and
volume variations on a profit
a) Net Profit analysis
b) Gross Profit analysis
c) CVP analysis
d) Cost analysis
7.
Contribution – Fixed Cost =
a) Sales
b) Profit
c) Loss
d) Variable Cost
8.
Depreciation is included in the cost, in case of --------------a) PBP method
b) ARR method
c) PV Index method
d) NPV method
9.
Which method will not consider the Time value of money?
a) Net Present Value method
b) Discounted Payback method
c) Profitability Index method
d) Pay Back Period method
CII Institute of Logistics
PGDSCM/DSCM/ADSCM & CERTIFICATE PROGRAMS
Semester-end Examinations- December 2011
FINANCE & ACCOUNTS FOR LOGISTICIANS
Time: 3 hours
Marks: 100
Part A
Answer all questions
1.
2.
3.
4.
5.
(10 x 1 = 10 Marks)
Share Holders Fund is otherwise called as ----------------------a) Bank Balance
b) Cash Balance
c) Net worth
d) Retained Earnings
Income measurement based on comparison of expenses and revenues of
a period is called
a) Matching
b) Revenue
c) Expenses
d) Accrual
Increase in Bills Receivable results in
a) Increase in cash
b) Decrease in cash
c) No change in cash
d) Slight decrease in cash
An analysis that explains the difference between the balance of cash
shown on the bank statement and the balance of cash showed on the
depositors records
a) Bank statement
b) Bank reconciliation
c) Investment analysis
d) Passbook
Acid Test Ratio is otherwise called as
a) Debt Equity ratio
b) Net Profit ratio
c) Current Ratio
d) Quick ratio
10. Increase in Assets is --------------------a) Application of funds
b) Sources of funds
c) No Change in funds
d) None of above
Part B
Answer any four
(4x15= 60 marks)
1.
Who are the users of Financial Statement? Discuss their usage briefly.
2.
What is Working Capital? How it is related to the Liquidity Position of a
Company?
3.
What is Budgetary Control? Explain in detail.
4.
What is Depreciation? How it helps the management while calculating
the Tax?
5.
From the following information, find out
i.
ii.
iii.
Current Assets,
Quick Current Liabilities,
Stock,
iv.
v.
a)
b)
c)
d)
e)
f)
g)
6.
Fixed Assets and
Share Capital.
Working Capital
Reserves and Surplus
Bank Overdraft
Current ratio
Liquid ratio
Fixed Assets to Proprietors funds
Long Term Liabilities
1,50,000
Rs.1,00,000
Rs.60,000
1.75
1.15
0.75
Nil
0.909
0.826
0.75
0.683
*************************************
P/V ratio
Profit when sale are Rs.20,000
New Break Even point if selling price is reduced by 20%
Fixed expenses Rs.4,000
Break-Even Sales Rs.10,000
Part C
Case study
(3*10=30 marks)
Please read the problem and answer the questions given below:
Mukesh Engineers propose to purchase a Machinery for Rs.1,00,000.
There are two alternatives available in the market A & B. The expected
rate of return is 10%.
Year
Machine – A
Machine – B
1
15,000
10,000
2
20,000
25,000
3
25,000
25,000
4
30,000
30,000
5
50,000
50,000
Calculate
1.
2.
3.
P.V.F at 10%
0.621
--------------------------------------------------------------------------------------------
From the following data calculate:
i.
ii.
iii.
------------------------------------------------------------------------------------------------Year
1
2
3
4
5
Pay Back Period
Net Present Value
Profitability Index
As a Manager choose the right machinery, which is suitable for your
industry by using the above tools and write your decision.