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MGT402 Current Final Term Fall 2013 Shared by THE GREAT GENIUS File 10

1- What is principle budget factor?
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2- Contribution margin ratio (calculative question)
Product A has the contribution of 8 Rs per unit, and contribution margin ratio is 40 % and required 5 machine hours to produce.
Product B has the contribution of 12 Rs per unit, and contribution margin ratio is 50 % and required 4 machine hours to produce.
Required:
What product is better? Explain your answer with suitable working.
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3- Explain the difference between cost unit and per unit cost
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4- Budgeted production (calculative question)
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5- Budgeted production (calculative question) repeats
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6- What are the cash inflows and outflows in given table?
Item Answers
Sale the stock Cash inflow
Payment for payables Cash outflow
Accounts receivables Cash inflow
Payment to the dividend Cash outflow
Purchased the inventory Cash outflow

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7- Opportunity cost (calculative question)
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8- High rate of Labor Turnover results the increase in cost of production. Explain the Effect Of Labor Turnover.
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