CMA Coaching

CMA Coaching

Trending Questions and Lessons

Follow 2,203 Followers

Ask a Question

Feed

All

All

Lessons

Discussion

Lesson Posted on 18 Jun Exam Coaching/CA Coaching/IPCC Group 1 Exam Coaching/CMA Coaching

Costing Basic Definitions

Kavya BV

I am an experienced and qualified tutor and a professional. I have been in teaching from past 2 years...

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... read more

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.

read less
Comments
Dislike Bookmark

Lesson Posted on 10 Feb Exam Coaching/CMA Coaching Exam Coaching/CPA Coaching Exam Coaching/ACCA Exam Coaching +3 Exam Coaching/CA Coaching/CPT Exam Coaching/CFA Coaching Exam Coaching/UGC NET Exam Coaching less

CMA: Part 2: CVP Analysis

CPACMA Coach

LetsLearn is the national body which champions teaching excellence. We work wit universities,coporates...

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.... read more

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:

                                            01X-table-01

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:

                                       01X-table-02

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.

                                           01X-table-03

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:

              01X-green-table-05

Always check your calculations:

                                         01X-table-04

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:

                                                      01X-table-05

                            01X-green-table-06

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

                           01X-green-table-07

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%:

                                                          01X-table-06

                              01X-green-table-08

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

               01X-green-table-09

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

                                                  01X-table-07

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.

read less
Comments
Dislike Bookmark

Lesson Posted on 24/07/2017 Tuition/BCom Tuition/International Banking & Forex Management Tuition/BBA Tuition/International Business Schools/International Schools +4 Exam Coaching/CA Coaching/CA Final Exam Coaching/CMA Coaching Exam Coaching/MBA Entrance Coaching Tuition/MBA Tuition less

How To Remove Over Dependency On USD?

Udaya Lakshmi

I am having an Industry experience of more than 25 years and worked in major MNCs in Top Management Levels.

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... read more

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.

read less
Comments
Dislike Bookmark

Looking for CMA Coaching Classes

Find best CMA Coaching Classes in your locality on UrbanPro.

FIND NOW

Lesson Posted on 24/07/2017 Tuition/BBA Tuition/International Business Tuition/BCom Tuition/International Finance Schools/International Schools +6 Tuition/BCom Tuition/International Banking & Forex Management Exam Coaching/CA Coaching Exam Coaching/CA Coaching/CA Final Exam Coaching/CMA Coaching Exam Coaching/MBA Entrance Coaching Tuition/MBA Tuition less

How India Can Beat China Economically?

Udaya Lakshmi

I am having an Industry experience of more than 25 years and worked in major MNCs in Top Management Levels.

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... read more

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.

read less
Comments
Dislike Bookmark

Lesson Posted on 24/07/2017 Tuition/BBA Tuition/International Business Tuition/BCom Tuition/Business Organisation and Management Exam Coaching/CA Coaching +6 Exam Coaching/CA Coaching/CA Final Exam Coaching/CMA Coaching Exam Coaching/MBA Entrance Coaching Tuition/MBA Tuition Tuition/BA Tuition Tuition/BCom Tuition less

7 R's Of Winning An Enemy

Udaya Lakshmi

I am having an Industry experience of more than 25 years and worked in major MNCs in Top Management Levels.

We have seen Two Superpowers: US and USSR competing and combating with each other until 1990s . Now the centre stage has moved to Asia where Superpowers are taking sides with India and China. US, France, Germany, Japan & UK joining hands with India and China with Pakistan to have their own Strategic... read more

We have seen Two Superpowers: US and USSR competing and combating with each other until 1990s . Now the centre stage has moved to Asia where Superpowers are taking sides with India and China.

US, France, Germany, Japan & UK joining hands with India and China with Pakistan to have their own Strategic calculations. Russia is confused and not able to decide which side to go.

I am putting forward 7 R's (Revolution) which are of key to any country to win over the other:

1. Industrial & Technological Revolution.

2. Infrastructural Revolution.

3. R & D Revolution.

4. Economic, Tax & Insurance Revolution.

5. Political Revolution.

6. Defence Revolution.

7. Foreign Policy Revolution.


 
read less
Comments
Dislike Bookmark

Lesson Posted on 24/07/2017 Functional Training/Finance Training Tuition/BCom Tuition/Financial Accounting Tuition/BCom Tuition/Business Organisation and Management +10 Tuition/BCom Tuition/Corporate Accounting Tuition/BBA Tuition/International Business IT Courses/SAP/Customer relationship management products Tuition/BBA Tuition/Banking Regulations & Operations Tuition/BCom Tuition/International Banking & Forex Management Exam Coaching/CA Coaching Exam Coaching/CA Coaching/CA Final Exam Coaching/CMA Coaching Exam Coaching/MBA Entrance Coaching Tuition/MBA Tuition less

Corporate Challenges Of A Finance Professional Today: How to face it?

Udaya Lakshmi

I am having an Industry experience of more than 25 years and worked in major MNCs in Top Management Levels.

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... read more

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.

 

 

read less
Comments
Dislike Bookmark

Looking for CMA Coaching Classes

Find best CMA Coaching Classes in your locality on UrbanPro.

FIND NOW

Answered on 15/07/2017 Exam Coaching/CMA Coaching

Vidya S.

ACCA , CA, CS Coaching

We are doing CMA Coaching our Institute is at the beginning of Bannerghatta Road , Behind Indian Institute of Bangalore vijaya bank layout , Global Finance Academy vidyasarathy
Answers 6 Comments 1
Dislike Bookmark

Lesson Posted on 30/05/2017 Exam Coaching/CA Coaching Tuition/BCom Tuition Exam Coaching/CMA Coaching +1 IT Courses/Tally Software less

GST Update: Impact Of GST On Restaurant Business.

Vertex Commerce Coaching Centre

Subjects taught: Accounts, Advanced Accounts, Costing, Financial Management. B.Com. - All subjects covered....

GST is almost ready to be rolled out. Both the producers and consumers start comparing the impact of the propsed taxation system with that of the existing one. In this article we are trying to compare the impact of GST of the consumers of the restaurant business comparing it with the existing system. First... read more

GST is almost ready to be rolled out. Both the producers and consumers start comparing the impact of the propsed taxation system with that of the existing one. In this article we are trying to compare the impact of GST of the consumers of the restaurant business comparing it with the existing system.

First of all the various rates under the GST are produced below:

Supply of Food/drinks in restaurant not having facility of air - conditioning or central heating at any time during the year and not having licence to serve liquor.

12% with Full ITC

Supply of Food/drinks in restaurant having licence to serve liquor.

18% with full ITC

Supply of Food/drinks in restaurant having facility of air - conditioning or central heating at any time during the year.

18% with full ITC

   ITC = Input Tax Credit i.e. the tax paid at the time of purchase of inputs, input services and capital goods.

Now we see the present situation with a hypothetical example. Suppose the food bill in a AC restaurant comes to Rs. 1,000/-. At present if you are in West Bengal you have to pay 14.5% as VAT on the Bill amount and Service Tax of 15% on 40%(it is called abatement) of the bill amount excluding VAT. Therefore the total tax comes to 20.5% of the bill amount and you will end up paying Rs. 1,205/-.

Now, in GST regime, the rate of GST is 18% in AC restaurant. Therefore, you can save 2.50% in tax which will amount to Rs. 25/- for the above example. The amount may be insignificant but there is another aspect which needs to be considered under GST regime.

In GST the rate is with full ITC that means any tax paid on the inputs used or intended to be used for making an outward supply in the course or furtherance of business can be taken as input credit, which means there will be scope of reducing the cost of the business. Therefore, the cost structure of the business should be revised under GST. This will benefit both the consumers as well as the restaurant owners.

Again, restaurants with an annual turnover of less than Rs. 50 lakh will be able to avail the composition scheme under the GST regime and pay a flat tax of 5% and also they will be exempt from maintaining procedural requirement. It will be beneficial to both the consumers and the restaurant owners.

It can be concluded that eating out going to be cheaper in the GST regime than now. Finding a restaurant less than 50 Lakh annual turnover will be very much pocket - friendly.

read less
Comments
Dislike Bookmark

Lesson Posted on 26/12/2016 Functional Training/Finance Training Tuition/MBA Tuition Exam Coaching/CMA Coaching +1 Exam Coaching/CA Coaching less

Value management : A way to improve sustainable profit

Ajay Paralikar

Worked with industry for more than 25 years. Worked as a teacher for more than 5 years

Not always addition of value leads to addition to cost. Sometimes an entrepreneur can create value for the customer without any cost, even may be sometimes there is negative cost adds value. This means, the cost is saved for the value added. For example, one of the toothpaste companies introduced salt... read more

Not always addition of value leads to addition to cost.  Sometimes an entrepreneur can create value for the customer without any cost, even may be sometimes there is negative cost adds value. This means, the cost is saved for the value added.

For example, one of the toothpaste companies introduced salt in its toothpaste.  The cost of the salt is less than the cost of other material in the toothpaste. The total weight of the toothpaste was same, but some costly material was removed and salt was introduced. For this ‘salty’ toothpaste, the customer paid premium.

To perform some task is very easy for the organisation but is difficult for the customer. Performing this task for the customer, for very little or no cost creates value. One of the detergent company introduced blue in its powder. It reduced lot of task of the customer, to maintain stock of blue, use it for the cloths etc. The hassles were reduced at very low cost.

The objectives of the value creation mainly are, to attract the customers and encourage him to pay you more. More value in same price, or higher value in little more cost, is a win-win situation.

However, the entrepreneur should manage the value and cost. He should be futuristic for value addition. Because, for the first few times, the customer is delighted due to higher value. Then he becomes habitual of the higher value. The third stage is, it becomes his demand and right. With the air-conditioners in the cars customers were delighted.  Now, a car without air-conditioner will not be sold. It has become customer habit and right.

Proper plan to add values one by one will delight the customer time to time , and he will stick to your products.

read less
Comments
Dislike Bookmark

Looking for CMA Coaching Classes

Find best CMA Coaching Classes in your locality on UrbanPro.

FIND NOW

Lesson Posted on 16/12/2016 Tuition/BCom Tuition Exam Coaching/CA Coaching Exam Coaching/CMA Coaching +2 Exam Coaching/Company Secratary (CS) Coaching Exam Coaching/ICWA Coaching less

Definition of Contract

Vidyadhan Academy Pvt. Ltd.

Our faculty is well adapted with the latest syllabus taught at school as well as university well. They...

The term ‘contract’ is defined in Section 2 (h) of the Indian Contract Act, as under:“An agreement enforceable by law is a contract.”This means that contract is a combination of an agreement and the enforceability of the agreement We can say that: Contract = An agreement + Enforceability.The... read more

The term ‘contract’ is defined in Section 2 (h) of the Indian Contract Act, as under:
“An agreement enforceable by law is a contract.”
This means that contract is a combination of an agreement and the enforceability of the agreement We can say that:

Contract = An agreement + Enforceability.

The definitions of the terms ‘agreement’ and ‘promise’ are relevant to understand the meaning of contract.

The term ‘agreement’ is defined in Section 2 (e) of the Indian Contract Act, as under:

“Every promise and every set of promises forming the consideration for each other, is an agreement.”

And the term ‘promise’ is defined in Section 2 (b) of the Indian Contract Act, as under: “A proposal, when accepted, becomes a promise.”

The above two mentioned provisions show that an agreement is an accepted proposal (offer). Thus, every agreement consists of an offer from one party and its acceptance by the other. We can say that:

Agreement = Offer + Acceptance.

Every agreement is not a contract. It is regarded as contract only when it is enforceable by law. The conditions of enforceability of agreement are laid down in Section 10 of the Indian Contract Act.

Conditions of Enforceability
The conditions of enforceability of an agreement as laid down in Section 10, are:-

  1. The Agreement must be made by the free consent of the parties.
  2. The agreement must be made by the parties who are competent to contract.
  3. The agreement must be made for a lawful consideration and with a lawful object.
  4. The agreement must not be expressly declared to be void.
read less
Comments
Dislike Bookmark

About UrbanPro

UrbanPro.com helps you to connect with the best CMA Coaching Classes in India. Post Your Requirement today and get connected.

Overview

Lessons 24

Total Shares  

Top Contributors

Connect with Expert Tutors & Institutes for CMA Coaching

x

Ask a Question

Please enter your Question

Please select a Tag

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 25 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 6.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more