Forums
Budget and budgetary control
Costing
answered on 24-Jul-20 09:23
Sir, in this question the foreman is not eligible for bonus as per the flexible budget. But he is eligible for bonus as the per the fixed budget. Here, why we are comparing the actuals with flexible budget and not with the fixed budget though they didn't mention anywhere in the question? How do we know that we should prepare flexible budget? Whether we can answer that the foreman is eligible for bonus according to the fixed budget as it is aslo a type of budget under the category of capacity wise budget?
latest answer
Suitability for flexible budget: 1. Seasonal fluctuations in sales and/or production, for example in soft drinks industry; 2. a company which keeps on introducing new products or makes changes in the design of its products frequently; 3. industries engaged in make-to-order business like ship building; 4. an industry which is influenced by changes in fashion; and 5. general changes in sales. And since the this is due to either change in sales, we consider Flexible budget. You can answer that the foreman is eligible as per fixed budget in a note in addition to solving the question as per fixed budget method.
Viveka R
CA Inter
★ 3K+
1
688
Individual modules
Financial Management
answered on 25-Jul-20 12:28
The individual modules which I purchased with respect to Financial management . There is no class that is teaching "the indifference point." 19th video is just jumping into problem. Sir said in that video it is already told. I searched for it but no video is there in this modules with respect to indifference point Plzz reply
latest answer
K thank you
Swathi Krishna
CA Final
★ 8K+
2
700
Budget and budgetary control
Costing
answered on 24-Jul-20 09:12
Sir in this question why we are comparing only the levels of activity for 8,000 units and 10,000 units for determining the type of cost (i.e. fixed cost, variable cost and semi variable cost) for every line item and not 6,000 units?
latest answer
We are calculating what are the savings by applying the budgeted costs rate to the actual output in the flexible budget. Here, we take the budgeted cost less Normal cost divided by the difference between the budgeted output and the normal output. And after getting a certain rate we are applying it to the actual output produced in preparation of the flexible budget. Since this being a preparation of flexible budget, we calculate the actual performance at budgeted rates and so, we firstly compute the the budgeted and normal activity and then apply the resultant rate to the Actual production.
Viveka R
CA Inter
★ 3K+
1
777
Marginal Relief Concept
Direct Taxation
answered on 22-Jul-20 11:19
Hi, I was doing Marginal Relief topic. I wanted to have more clarity on this topic. My answer isn't matching with the answer on screen. So the question is- 1. What are the steps to calculate marginal Relief when the income is Rs. 5,30,00,000 of residual category? I request you to explain it in a more lucid manner than expressed in the illustration of marginal relief.
latest answer
Calculation of Marginal relief-Say,Individual total taxable income is 51 lakh in a financial year, applicable surcharge 10% surcharge applicable for 50 lakh and -1 crore. and he will pay 1,35,500 as surcharge,i.e for 1 lakh extra income he will be paying 135500/- so marginal relief of Rs.100,000 is given( means relief was given for variance in income results in tax exceeding over such variance of income.)
Karan Chellani
CA Inter
★ 0
1
823
Commerce
Accountancy
answered on 25-Sep-22 09:56
Commerce
latest answer
If your question is what is commerce? Then -commerce refers to all those activities which help directly or indirectly by the distribution of goods and services ....It is a trade i.e buying and selling of goods and auxiliary to trade i.e ,communication, transportation advertising etc.. It is an art as well as science .
Priyanka Kumari
CBSE XI
★ 0
2
718
Financial statements
Accountancy
answered on 23-Jul-20 21:05
In profit and loss account format under the heading expense there is change in inventory in that why we subtract opening to closing ?? Why we cannot do closing to opening.
latest answer
Hello
Akshay jerry
CA Inter
★ 10
2
627
Non speculative
Direct Taxation
answered on 22-Jul-20 11:26
Mean non speculative business ? Textiel business and chemical business it's nornal or non speculative business?
latest answer
Speculation business - Speculative transaction means a transaction in which contract for purchase and sale of any commodity including stock and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scripts other than above is Non-speculative, and Textile and chemical are non-speculative business.
Nivetharaman Raman
CA Foundation
★ 11K+
1
1K+
Flowchart
Information Systems
answered on 25-Jul-20 12:33
In page 1.44 example 3 Can write the answer like this (in picture)? Is it correct ?
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K thax
Swathi Krishna
CA Final
★ 8K+
2
620
Provision for Restructured loan
Auditing
answered on 22-Jul-20 14:52
Sir, In the lecture i saw that the provision for Restructured loan is 5%(wether standard asset or NPA) for first two years, and thereafter it is 0.4%. But what if it is NPA after 2 years whether the provision for NAP's will apply or it will still remain as 0.4%.?
latest answer
In case of restructured loan, after restructuring First two years - 5% After 2 years pass, analyse if its a Standard or NPA IF standard - 0.4% provision will be required If NPA - then NPA provisioning will apply Before 2 years only it turns into NPA then NPA provisioning is required
Sakthi Praveen
CA Inter
★ 2K+
3
696
Sweat equity shares
Corporate & Other Laws
answered on 21-Jul-20 22:23
I am not able to differ between sweat equity shares and right issues.....
latest answer
Sec.2(88): "sweat equity shares" means such EQUITY SHARES as are issued by a company to its DIRECTORS or EMPLOYEES AT A DISCOUNT or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called. Sec.â??Right Issueâ?? means offering SHARES to EXISTING MEMBERS IN PROPORTION to their existing share holding. The object is to ensure equitable distribution of Shares and the proportion of voting rights is not affected by issue of Fresh shares.
abhishek kapale
CA Inter
★ 980
1
651