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We are delighted to announce that June 2018 CMA result 

CMA Foundation - Success 100% student passed

CMA Inter Gr. I  - Success 100% student passed

CMA Inter Gr. II  - Success 100% student passed

Students you must be wondering how Nectar Solution students has cracked this exam and the trick is hard work.. hard work.. hard work.  Not only of students but also the professionally qualified CMA, CA & CS Faculties who guide / mentor studetns through their journey.

You may call us to know more about our success story.

Nectar Solution 7219420003

Costing- The technique and process of ascertaining cost.

Cost Accounting - The process of accounting for costs which begins with a recording of income and expenditure or the basis on which they are calculated and ends with the preparation of periodical statements and reports for ascertaining and controlling costs.

Cost Accountancy- The application of costing and cost accounting principles, methods and techniques to the science, arts and practice of cost control and the ascertainment of profitability.

i. Break Even Point: The break–even point (BEP) or break–evenlevel represents the sales amount in either unit (quantity) or revenue (sales) terms that is required to cover total costs, consisting of both fixed and variable costs to the company. Total profit at the break-even point is zero.

ii. Expense Behavior: At the heart of break-even point or break-even analysis is the relationship between expenses and revenues. It is critical to know how expenses will change as sales increase or decrease. Some expenses will increase as sales increase, whereas some expenses will not change as sales increase or decrease.

a. Variable Expenses: Variable expenses increase when sales increase. They also decrease when sales decrease.

At Oil Change Co. the following items have been identified as variable expenses. Next to each item is the variable expense per car or per oil change:

The other expenses at Oil Change Co. (rent, heat, etc.) will not increase when an additional car is serviced.

For the reasons shown in the above list, Oil Change Co.’s variable expenses will be $9 if it services one car, $18 if it services two cars, $90 if it services 10 cars, $900 if it services 100 cars, etc.

b. Fixed Expenses: Fixed expenses do not increase when sales increase. Fixed expenses do not decrease when sales decrease. In other words, fixed expenses such as rent will not change when sales increase or decrease.

At Oil Change Co. the following items have been identified as fixed expenses. The amount shown is the fixed expense per week:

c. Mixed Expenses: Some expenses are part variable and part fixed. These are often referred to as mixed or semi-variable expenses. An example would be a salesperson’s compensation that is composed of a salary portion (fixed expense) and a commission portion (variable expense). Mixed expenses could be split into two parts. The variable portion can be listed with other variable expenses and the fixed portion can be included with the other fixed expenses.

iii. Revenues or Sales: Revenues (or sales) at Oil Change Co. are the amounts earned from servicing cars. Oil Change Co. charges one flat fee of $24 for performing the oil change service. For $24 the company changes the oil and filter, adds needed fluids, adds air to the tires, and inspects engine belts.

At the present time no other service is provided and the $24 fee is the same for all automobiles regardless of engine size.

As the result of its pricing, if Oil Change Co. services 10 cars its revenues (or sales) are $240. If it services 100 cars, its revenues will be $2,400.

iv. Desired Profit In Units Let’s say that the owner of Oil Change Co. needs to earn a profit of $1,200 per week rather than merely breaking even. You can consider the owner’s required profit of $1,200 per week as another fixed expense. In other words the fixed expenses will now be $3,600 per week (the $2,400 listed earlier plus the required $1,200 for the owner). The new point needed to earn $1,200 per week is shown by the following break-even formula:

Always check your calculations:

The above schedule confirms that servicing 240 cars during a week will result in the required $1,200 profit for the week.

v. Break-even Point In Sales Dollars: One can determine the break-even point in sales dollars (instead of units) by dividing the company’s total fixed expenses by the contribution margin ratio.

The contribution margin ratio is the contribution margin divided by sales (revenues). The ratio can be calculated using company totals or per unit amounts. We will compute the contribution margin ratio for the Oil Change Co. by using its per unit amounts:

The break-even point in sales dollars for Oil Change Co. is:

The break-even point of $3,840 of sales per week can be verified by referring back to the break-even point in units. Recall there were 160 units necessary to break-even. At $24 per unit the necessary sales in dollars would be $3,840.

vi. Desired Profit In Sales Dollars: Let’s assume a company needs to cover $2,400 of fixed expenses each week plus earn $1,200 of profit each week. In essence the company needs to cover the equivalent of $3,600 of fixed expenses each week.

Presently the company has annual sales of $100,000 and its variable expenses amount to $37,500 per year. These two facts result in a contribution margin ratio of 62.5%:

The amount of sales necessary to give the owner a profit of $1,200 per week is determined by this break-even point formula:

To verify that this answer is reasonable, we prepared the following schedule:

As you can see, for the owner to have a profit of $1,200 per week or $62,400 per year, the company’s annual sales must triple. Presently the annual sales are $100,000 but the sales need to be $299,520 per year in order for the annual profit to be $62,400.

Dear Corporate Professionals,

Past few decades the Global financial services industry and the accounting profession have undergone a sea change with the rapid globalization of economy where Financial Planning, FAR, IFRS, GAAP Internal Control, Internal Audit and Professional Ethics have formed a substantial part in accounting practices. 

With this development, the accounting bodies of developed/developing nations are trying to share the common updated platform speaking the same accounting language. 

Personal finance products & services are increasingly becoming an important part of this industry as the consumers seek to maximize and optimize the fruits of their hard-earned money and the subsequent pressure to acquire globalized accounting skills is piling up on the Asian Finance and Accounting Professionals.

An Asian Finance Professional, today, faces significant challenges compared to their western counterparts in terms of Career Enhancement Opportunities, Global Exposure, Profile-Spectrum and Rewards.

Knowledge enhancement and skill sharpening is always the careerists’ forte whether you are a qualified professional or fresher.

China has become a nuisance to India and its Development.

Being a member in UN, BRICS, G20, and importantly being India’s neighbour having boundary disputes, China has become big threat to India and its Development.

India needs to concentrate on why China can produce products at low cost of better service with higher output in less time of expert imitator with quality of work, and dominate in their strong area.

I have mentioned some of the ways through which India can beat China in near future:

1. Economic Reforms on fast track.

2. Tax Reforms: Concessions to industries to promote more production.

3. Automation of Industry.

4. Technological Advancement.

5. Apply Economies of Scale to reduce cost of production.

6. Increase Exports.

7. To have better Foreign Policy: All Chinese Enemy’s should be India’s friends namely Philippines, Japan, South Korea, Vietnam.

8. Apply the rule of “Enemy’s friend is also an Enemy”.

9. To focus more on Make in India than importing.

10. Tie up major manufacturers to have manufacturing set up in India since China is having poor patents record.

11. Control Inflation.

12. Skill Development: Emphasis on Talent Development.

13. Encourage Indians to use only Indian products so that money will be circulated within India.

14. Investment in Infrastructure.

15. Indian Government should negotiate with its partners to settle the transaction in INR than in USD.

It is highly difficult for a country like India to have its over dependency on USD.  It is the right time to come out of USD transactions during business dealings with other countries. Dollar enjoys world's international reserve currency Status.

India, enjoy good rapport with majority of countries in the world except few in the border.

I cannot understand why big think tanks in RBI and the Finance Ministry have not started this process until now.

Now, we all aware that China and Japan are dealing with their own currency with effect from 01/06/2012 under Direct Currency Agreement (Yen / Yuan). Thus bypassing USD.

India mobilises almost 80% of its oil needs through imports and spend almost $330 million/day on imported Oil and Gas. India is the Third largest consumer of oil and Gas in the world.

Indian imports Crude Oil from Russia, Saudi Arabia, Qatar, Iran, Iraq ,Venezuela & Nigeria. India should now sign “Currency Swap Agreement” with all these countries where by to settle in INR thus bypassing in USD payments.