Cash Flow Analysis (mba)

CASH FLOW ANALYSIS (8) 1. _____________________ Statement reveals the inflow and outflow of 2.

3. 4. 5. 6. 7. 8. 9. 10.

cash during a particular period Cash flow statement is prepared on the basis of _____________ data showing the inflow and outflow of cash Cash flow statement takes into consideration only the changes in cash position between two ___________ ______________ Increase in current liabilities and decrease in current asset will increase ________ Cash flow statement helps in ___________ financial decisions relating to liquidity Cash flow statement explains the reasons for _______ cash balance ___________________ is an important tool of cash planning and control cash flow statement shows the major _________ and ________ of cash ____________ is the lifeblood of business Cash from operation can be calculated by _____________ method and _______________ method

FUND FLOW ANALYSIS (7) 1. The flow of fund will occur in a business when a transaction results in a ___________ in the amount of fund 2. Fund flow statement is also ______________________________ 3. ______________________ is a technical device designed to highlight the changes in the financial condition of a business enterprise between two balance sheet 4. ________________ describes the sources from which additional funds were derived and the uses to which these funds were put 5. Fund flow statement is also known as ____________________________ 6. F.F.S points out the financial _______________ and _____________of business 7. ___________ items are taken while preparing schedule of changes in working capital 8. __________________ is prepared to know funds from/fund lost in operation 9. According to __________________, the fund flow statement describes the sources from which additional funds were derived and the uses to which these funds were put 10. The term fund means _______________

STANDARD COSTING (12) 1. ______________ provides standards or yard sticks for comparing the actual cost 2. __________________ is the projection of cost accounting 3. __________________ is the projection of financial accounting 4. ______________ are used for all functions of management (planning, organizing, controlling)

5. Standard costing and budgetary costing are ________________ to each other 6. _______________ cost is computed before actual production is commenced 7. The usefulness of standard costing depends on measurement and analysis of ______________ 8. _______________ and ______________ are effective tools of managerial planning and cost control 9. The standards for material include ________________________ and material price standard 10. __________________ pre-determines the kind, quality and quantity of materials to be used to produce a desired output 11. Material prices are influenced by external factors like ______________ and ___________________ 12. __________________ is the difference between a standard cost and the actual cost incurred during a period 13. Labor _______ variance = Rate Variance + Efficiency Variance 14. Overhead cost variance = Fixed overhead Variance + ______ overhead variance 15. Material cost variance consist of usage variance and __________ _________________ 16. A mix variance arises due to difference between __________ and ________ of different materials used in the actual mix 17. When actual cost is more than the standard cost is called ____________ 18. _______________ is the heart of standard costing technique 19. The usefulness and effectiveness of the technique depends on the analysis of variances 20. Fixed overhead variance consists of ________________ and _____________ 21. ______________ variance consists of calendar variance, capacity variance and efficiency variance 22. Expenditure variance is also known as ______________ variance 23. Material ___________ variance is the difference between the actual output and the output that could have obtained by using the actual input 24. Material cost variance = standard cost of materials - ____________ cost of materials 25. _____________ ______________ standards refers to the standard time to be taken for each of labor for each operation

BUDGETARY CONTROL (11) 1. _______________ is the target or the objective of each section of the organization 2. ________________ is the process of preparing the budgets 3. _______________ is the technique and process of fixing the targets, preparing the budgets and using them as an effective tool of planning and control

4. Budgets lay down ____________ for the future and budgetary control compares ____________ with the budgets and exercises control over activities and cost of the organization 5. ________________ enables the identification of accountability of each executive 6. _____________ limits the volume of output of an undertaking 7. It is rightly said that budget is a means and ___________ ___________ is the end result 8. _______________ or ______________ is the leader of the Committee 9. The period for which the budget is prepared and remains effective is called ____________________ 10. On the basis of scope, budgets can be classified as ______________ and ____________ 11. on the basis of efficiency, budgets can be classified as ______________ and ____________ 12. on the basis of period, budgets can be classified as ______________ and ____________ 13. Budget is a formal expression of ______________ income and expenditure for a definite future period 14. Budgetary control creates awareness among the employees of their rights, duties and responsibilities by ________________ 15. The budgets relating to different functions of an undertaking are called __________ ____________ 16. ________________ is a consolidated summary of various functional budgets 17. __________ is defined as a budget designed to change in accordance with the level of activity actually attained 18. budgetary control facilitates ______________ by exception 19. ______________ creates conditions necessary for the adoption of a system of standard costing 20. Excessive emphasis on budgetary control may lead to ________ competition and _________ behavior among functional executives

MARGINAL COSTING AND BREAK-EVEN ANALYSIS (10) 1. ____________ ________ is developed to overcome the deficiencies of absorption costing 2. In ________, both fixed and variable cots are charged to the products manufactured 3. Marginal costing is defined as " The ascertainment of marginal costs and of the effect on profit on changes in volume or type of output by differentiating between ________ and ____________ 4. Under marginal costing, only ___________ are charged to operations, processes or products 5. Variable cost is also called as _________ 6. The difference between selling price and marginal costing is called __________ 7. At ________ point, 'contribution' is equal to fixed costs

8. ______________ is the pictorial illustration of cost-volume-profit 9. Graphical representation of cost and revenue showing their inter relations at different volumes of output is called as the ____________ __________ 10. Break even chart shows the relation between _______ ______ and _______ 11. In a break even chart, the horizontal axis (X – axis) represents _________ and the vertical axis represents the ___________ 12. The preparation of a Break even chart requires segregation of semi fixed costs into _____________ 13. The difference between sales and the break even sales is called ___________ 14. Marginal cost = Prime cost + ___________________ 15. Fixed costs do not vary directly with rate of output. Hence, they are called _______________ 16. The relation of contribution to sales is called ________ ratio 17. Variance 18. The term marginal costing is the gift of _____________ 19. Break even point represents that volume of sales or production when there is no profit or loss 20. __________ _________ helps in finding out effects or profits, due to changes in volume or type of output 21. The difference between selling price and marginal cost ( variable cost) is called _____________ 22. Marginal cost = Total _____________ overheads 23. Variable cost is also known as __________________ 24. Fixed cost is also known as ___________________ 25. Total variable cost increases with the increase in __________ 26. variable cost per unit remains ____________ at different levels of output 27. closing stock is valued at _______________ cost only 28. Fixed cost is not charged to finished stock or work in progress as it is treated as __________ cost 29. _____ cost per unit go on changing per unit with every increase in production 30. Contribution = sales - ____________ 31. Break even chart illustrates the impact of ___________ in fixed cost and variable cost on profit 32. __________________ Analysis is popularly known as cost-volume-profit relationship 33. Price may be below the total cost in special circumstances like _____________ , _____________,_____________,______________ 34. Under marginal costing, all elements of costs are classified according to their characteristics of variability as __________, __________ and _________ costs 35. A basic assumption in marginal costing is that selling price remains constant a different levels of _____________

UNDERSTANDING COST (9) 1. ___________________ provides information relating to total cost and cost per unit at different stages of production 2. A typical cost sheet shows the total cost of __________ only 3. A cost sheet with sales and profit data is called __________ 4. The elements of cost exhibited in a cost sheet are basically to facilitate the process of _____________ 5. ICMA stands for ____________ _____________ __________ ___ 6. Expenses include all _________ costs which are deductible from revenues 7. Losses are __________ in firm's equity for which no compensating value has been received 8. ______________ is the process of grouping costs according to their common characteristics 9. on the basis of elements, costs are classified as ________ costs, ________ costs and __________ 10. on the basis of traceability, costs are classified as ________ costs and __________ costs 11. on the basis of functions, costs are classified as __________, ________, _____________ 12. on the basis of variability, costs are classified as _______, ____________ and semi -fixed ( or semi- variable) costs 13. on the basis of controllability, costs are classified as _____________ and _______________ 14. On the basis of normality, costs are classified as _____________ costs and ______________ 15. Some important costs for ________purpose (decision-making purpose) are opportunity cost, relevant costs, incremental costs, differential cost, average cost, sunk cost, imputed costs and out of pocket costs 16. A statement in which different elements of costs are arranged in a logical order relating to a given period is called ______ ___________ 17. A cost sheet with sales and profit data is called an ______________ cost sheet 18. In cost sheet, the first part shows the __________________and the second part shows the selling and distribution expenses, total ___________ and the profit or loss 19. Direct material + Direct labor + direct expenses = _________ cost 20. Prime cost + factory overhead = _______________ 21. Factory cost + office and administration overhead = ______________ 22. Production cost + selling and distribution overheads = _____________ 23. _____________ charges are those which do not involve cash outlays 24. cost of land supplied free of charge by the proprietor of the business is an example of _____________ charge 25. Notional charges are _____ entered in the books of accounts 26. The amount of expenditure incurred on , or attributable to a specified thing or activity is termed as _______ (ICMA Definition)

27. _________cost is defined as the cost of commodities supplied to an undertaking 28. ____________ cost means the cost of remuneration of the employees of an undertaking 29. ___________ are the cost of services provided to an undertaking and the notional cost of the use of owned assets 30. Costs which are clearly , conveniently and economically identifiable to a costing centre or cost unit are called ___________ cost 31. Example of direct cost are ___________ and ___________ cost 32. costs which are either difficult or impossible to trace to a single product are called ___________ cost 33. Example of indirect cost are ________________ 34. cost incurred to manufacture the product are called _____________ cost 35. cost incurred for managing the enterprise are called _____________ cost 36. cost incurred for creating demand and meeting the orders are called _______________ cost 37. Fixed cost is also known as _______________ or _______________ or _________________ 38. Fixed cost depends on passage of ________ 39. ___________ cost which does not change in total amount for a given period of time in spite of changes in quantity of output or volume of activity 40. Fixed cost changes when ____________ of activity changes beyond the specified range 41. ___________ may increase the fixed cost and ___________ may reduce the fixed cost 42. Fixed cost per unit of output changes with change in ____________ of output 43. Variable cost per unit remains constant in a given period of time 44. _______________ cost is one which in the aggregate varies in direct proportion to the volume of production 45. Total variable cost change in proportion with change in volume of __________ 46. Variable costs are called _______________ costs as they are incurred because products are manufactured 47. Direct material and direct labor are example of __________cost 48. ___________________ have both fixed and variable elements(semivariable costs) 49. Semi fixed cost are also called ______________ or step costs 50. Semi fixed cost remain constant up to certain level of output and after that level they become variable 51. Telephone expenses is an example of _____________ cost 52. Labor cost where guarantee time wage is paid along with the incentive based on efficiency is an example of _______________ cost

53. __________cost is basically variable , but its degree of variable changes

suddenly when a certain level of output is reached 54. _______________ Cost remains constant for given volume of output and at a higher level of output it increases in a fixed amount. 55. Relationship between variable cost and output can be shown as a straight line, it is called ___________ variable cost 56. Relationship between variable cost and output can be shown as a curved line, it is called as a ___________ variable cost 57. Where each extra unit of output causes a less than proportionate increase in cost, it is called _______________linear variable cost 58. Where each extra unit of output causes a more than proportionate increase in cost, it is called _____________ linear variable cost 59. A cost which can be influenced by the action of a specified member of an undertaking is known as _________________ cost 60. _____________ are defined as those that are definitely influenced by a given manager with in a given time span 61. some examples of controllable costs are ________________,___________ 62. Variable cost vary with output but they need not always be _____________ 63. All variable costs need not be ____________,All controllable Cost need not be___________ _____________ 64. All Controllable costs are ____________ costs. However, all direct _______ are not controllable 65. A cost which cannot be influenced by the action of a specified member of an undertaking is known as _________________ cost 66. Majority of fixed costs are considered as __________________ costs. However , all fixed costs need not be non controllable costs 67. The controllability of an item of cost would depend on (1) the level of managerial responsibility (2) the time factor involved 68. Cost which is normally incurred at a given level of output under normal conditions of operations is called ___________ cost 69. ____________ cost are those which are normally incurred at a given level of output 70. Abnormal costs are not charged to the cost of ___________ but transferred to __________________account 71. ___________ refers to cost of selection of one alternative course of action in terms of other alternatives given up to carry out that course of action 72. ___________ refers to the benefits lost by rejecting an alternative course of action 73. ___________ cost are defined as future cost which differ between alternatives 74. There are certain elements of costs in each alternative, which remain the same and not affected by the decision whatever alternative is chosen. Such costs are called _________________ costs 75. Relevant cost are not historic costs which are already been incurred 76. Relevant cost are additional or __________ costs

77. ______________ cost refers to an increase in cost from one alternative to another 78. ____________________ refers to the difference in total cost between two alternatives 79. Differential cost includes both ________________ cost(cost increase) and _____________ cost( cost decrease) 80. ______________ cost helps in evaluating the profitability of alternative proposals 81. ________________cost helps the management in knowing the additional profit and additional cost of different proposals 82. ________________ cost means the cost per unit. 83. In average cost, ___________ cost is divided by related unit of output/hours of work/volume of service/number of employees 84. Intelligence decisions require the knowledge of both total cost and ____________ costs 85. ___________ cost is the cost that has been either already incurred or is yet to be incurred 86. ____________ cost refers to cost which has no economic reference to the present decision making process 87. ______________ cost are not actually incurred and do not involve cash outlay but are relevant in decision making 88. Rental value of the property owned by the enterprise is an example of _______________ cost 89. Out of pocket cost refers to _________ cost associated with an activity 90. _______________ like depreciation are not included in out of pocket costs 91. A statement of which different elements of costs are arranged in a logical order relating to a given period is called ___________ sheet 92. ______________ material cost refers to the cost of materials which became a major part of finished product 93. All expenses incurred in acquiring the direct material are added to the invoice price of the __________ materials e.g. import duties, carriage inward 94. Direct material of small value is treated as ____________ indirect material 95. Direct _________ cost refers to that cost which can be identified with, and allocated to cost centre or cost units 96. Any expenditure other than direct material and direct labour , directly incurred on a specific period is called __________ expenses 97. ___________ expenses can be identified with and allocated to cost centre or cost unit 98. Direct expenses are also known as _____________ expenses 99. ________________ overheads includes costs of planning and controlling the policies and operations of a business enterprise 100.__________ overheads includes indirect materials, indirect labour amd other indirect expenses 101.Materials that are used in small amount in the manufacturing process or that cannot be allocated to specific products are called _________ materials e.g thread used in sewing a shirt

102.Factory personnel who do not work directly on materials are ___________ labour e.g the wages and salaries of store keeper 103.__________ overheads covers the cost of making sales. It includes expenses of creating new demand and retaining existing demand 104.____________ overheads includes the cost of delivering or dispatching products 105.The important methods of valuing the W-I-P are _____________ basis, factory cost basis, and element of cost basis 106.Items of income or expenses of purely financial nature do not form the part of the costs 107._______________ items are not recorded in the cost sheet e.g.debenture interest, interest received 108.Direct material + direct wages + direct expenses + opening W.I.P –closing W.I.P = ______________ cost 109.Prime cost + factory overhead + opening W.I.P – closing W.I.P=______cost 110.