Explaining economic order quantity and variance analysis


Question1) Answer all the questions:

i) What do you mean by Economic order quantity (EOQ)?

ii) What do you understand by variance analysis?

iii) Write down any four differences between management accounting and financial accounting.

iv) Explain trend percentage?

v) How cash flow statement is different from Fund flow statement.

Question2) What is the meaning of Cost Accounting? Describe the difference between cost accounting and financial accounting.

Question3) Write brief note on:

a) Comparative Balance sheet statement.

b) Ratio analysis.

c) Fund flow statement.

Question4) Prepare a cost sheet from the following particulars:

PARTICULARS    Amount (Rs.)
Stock of finished goods 1.1.2009                  72,800
Stock of raw material on 1.1.2009                 33,280
Purchase of raw material                            7,59,200
Productive wages                                      5,16,880
Sale of finished goods                              15,39,200
Stock of finished goods on 31.12.2009          78,000
Stock of raw material on 31.12.2009              35,360
Factory overheads                                     1,29,220
Office and administrative overheads                70,161
Selling overheads                                          20,000

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Cost Accounting: Explaining economic order quantity and variance analysis
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