Response to the following :
(a) A contractor is contemplating to submit his tender papers for a small construction job which involves Rs 20,000 in materials and Rs 30,000 in wages. If his last year's construction experience is as given below, what price should be quoted to maintain his profitability?
Rs
Raw Materials
- Opening stock 20,000
- Closing stock 30,000
Purchase of Materials 170,000
Wages paid 120,000
Production Expenses 120,000
Non-production Expenses 50,000
Total Contracted Amount 500,000
(b) Discuss the scope and importance of Management Accounting. How does it differ from Financial Accounting?