www.caspot.com brings you the exclusive post of IMPORTANT TOPICS OF CA IPCC COST & FM IMPORTANT TOPICS FOR MAY 2015
Important Chapters/Topics:
Costing:
Material Cost
Contract Costing
Marginal Costing
Joint and By Products (Theory)
Financial Management:
Cost of Capital
Cash Flow Statement
Management of Working Capital
Costing and FM Important Theory
Go Through the Important Theory Questions in Costing and FM, for CA IPCC November 2014 Exams.
Even though enough care is taken while selecting the questions, students are recommended not to put in too much reliance on these.
Costing:
Discretionary Costs
Conversion Cost
Product Costs Vs Period Costs
Bin Cards Vs Stores Ledger
Allocation and Apportionment
Accounting Treatment for Over-time Premium
Short Notes on General Ledger Adjustment Account
Advantages of Cost-Plus Contract
Financial Management (FM):
External Commercial Borrowings
Business Risk Vs Financial Risk
ADR Vs GDR
Role of CFO
Types of Floats in the context of Cash Management
Benefits of Optimum Capital Structure
Ploughing Back of Profits
THE QUESTIONS ARE AS FOLLOWS WHICH ARE IMPORTANT FOR YOUR EXAMS :
COSTING
DESCRIPTIVE QUESTIONS:
1. Distinguish between spoilage and defectives in a manufacturing company. Discuss their treatment in cost accounts and suggest a procedure for their control.
2. What is ABC analysis?
3. Explain Idle time and its treated in Cost Accounts?
4. What do you understand by Labour Turnover? How is it measured? What are its causes? What are the remedial steps you would suggest to minimize its occurrence?
5. What do you understand by overtime premium?
6. Discuss the objectives of time keeping and time booking.
7. What is blanket overhead rate? In which situations, blanket rate is to be used and why?
8. Why is it necessary to reconcile the profits between the Cost Accounts and Financial Accounts?
9. How do you accounts for by-product in cost accounting?
10. What is Non-Integrated Accounting System?
11. What are essential Pre-requisites for Integrated System? DISTINGUISH QUESTIONS:
12. Cost unit and Cost centre
13. Explicit costs and Implicit cost
14. Job evaluation and Merit Rating
15. Allocation and Apportionment
16. Job Costing and Batch Costing
17. Operating Costing and Operation Costing.
18. Joint Product and By Product
19. Cost reduction and Cost control.
20. Product Cost and Period Cost
21. Job Costing and Contract costing
22. Standard cost and estimated cost.
23. Absorption Costing and Marginal Costing
24. Absolute and Commercial tonne kilometers
SHORT NOTES QUESTIONS:
25. Conversion cost
26. Sunk cost
27. Differential cost
28. Opportunity cost
29. Escalation Clause.
30. Irrelevant costs
31. Retention Money
32. Split off point
33. Margin of Safety
34. Profit Centre
Most Important Theory Questions of
Financial Management
(*) means question is repetitive
(**) means question is very important
Scope and Objectives of Financial managementQ1:- Functions of finance manager.
Q2:- (*) Discuss the functions of chief financial officer.
Q3:- Inter-relationship between investment, financing and dividend decisions.
Q4:- (**) Explain as to how the wealth maximization objective is superior to the profit maximization
objective.
Q5:- (*) Explain the limitation of profit maximization principle of the firm.
Q6:- Discuss the changing scenario of Financial management in India.
Q7:- Difference between Financial Management and financial accounting.
Financial Analysis & planning
Q1:- Distinguish between fund flow statement and cash flow statement.
Q9:- Explain the limitations financial ratios.
Q2:- Discuss any three ratios computed for investment analysis
Q3:- Discuss the financial ratio for evaluating company performance on operating efficiency and
liquidity position aspects.
Q4:- (*) Explain the need of debt-service coverage ratio.
Q5:- What is quick ratio? What does it signify?
Q8:- How is return on capital employed calculated? What is its significant?
Q6:- What do you mean by stock turnover ratio and gearing ratio?
Q7:- (*) Diagrammatically present the DU PONT chart to calculate return on equity.
Concept of Working Capital
[No theory question have been asked]
Cash/ Treasury management
Q1:- Write short note on Followings
(a) (*)Different kinds of float with reference to management of cash.
(b) (*)William J Baumal vs. Miller-Orr cash management model
(c) (**) Function of treasury department.
(d) Concentration banking
(e) Lock Box system
Management of Receivables
Q1:- Write short note on the following :
(a) (**)Factoring
(b) Commercial paper
(c) Deep discount bond vs. Zero coupon bonds
Q2:- Briefly explain the meaning and importance of crediting rating.
Q3:- Explain the importance of trade credit and accrual as source of working capital.
Q4:- Explain the ageing schedule in the context of monitoring of receivables.
Q5:- Explain the principle of trading on equity.
Q6:- Explain briefly the accounts receivable systems.
Cost of capital & Capital-Structure
Q1:- (*)State assumption of Modigliani and miller approach to cost of capital
Q2:- (*) Discuss the major considerations in capital structure planning
Q3:- (*) What is optimum capital structure? Explain.
Q4:- Discuss the dividend price approach and earning price approach to estimate cost of equity
capital.
Q5:- Explain the assumption of net operating income approach (NOI) theory of capital structure.
Q6:- Discuss the cost of debt equity or EBIT-EPS indifference point while determining the capital
structure of accompany.
Q7:- What do you understand by weighted average cost of capital?
Q8:- Explain arbitrage process under MM approach.
Q9:- Explain economic value added (EVA).
Q10:- Explain the principle of trading on equity.
Business Risk, Financial Risk and Leverage
Q1:- Discuss the impact of financial leverage on shareholders wealth by using return on-asset (ROA)
and return on-equity (ROE) analytic framework.
Q2:- Discuss the relationship between the financial leverage and firm’s required rate of return to
equity shareholder as per Modigliani and miller proposition II.
Q3:- (*) Difference between Business risk and Financial risk.
Capital Budgeting and Time Value of Money
Q1:- (*) Explain the relevance of time value of money in financial decision
Q2:- Distinguish between Net present value and internal rate of return.
Q3:- Discuss the need for social cost benefit analysis.
Q4:- Decision tree analysis is helpful in managerial decisions. Explain with an example.
Q5:- Discuss the need for social cost benefit analysis.
Q6:- Define modified internal rate of return method.
Q7:- Explain the multiple internal rate of return.
Q8:- Explain the concept of discounted pay back period.
Q9:- Explain the following terms.
(a) Desirability factor.
(b) Replacement of machine
Type of Financing
Q1:- Write notes on:
(a) (**)Venture Capital financing
(b) (**)Seed capital assistance
(c) Bridge finance.
(d) Debt Discount Bonds.
(e) Ploughing back of profits
(f) Leverage lease.
(g) Concept of closed and open ended leased
(h) Credit rating
(i) Euro issue
(j) Promoters’ contribution.
(k) Packing credit
(l) Post shipment loan
Q2:- What is debt securitization? Explain the basic debt securitization process.
Q3:- Discuss the feature of secured premium notes (SPN).
Q4:- Discuss the advantages of preference share capital as an instrument of raising funds.
International Financing
Q1:- Write short notes on the following
(a) Euro convertible bonds
(b) American Depository receipt vs. Global Depository Receipts
(c) (*)American Depository receipts
(d) (*)Concept of Indian depository receipts
Q2:- Explain briefly the features of External Commercial Borrowing (ECB).
Q3:- Name the various financial instruments dealt with in the international market
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