COST & MANAGEMENT ACCOUNTING
Need Answer Sheet of this Question paper, contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 COST & MANAGEMENT ACCOUNTING CASE STUDY : 1 J P Ltd manufacturers of a special product, follows the policy of EOQ for one of its components. The components’s details are as follows. Purchase price per component, Rs 200 Cost of an order Rs 100 Annual cost of carrying one unit in inventory, 10 per cent of purchase price Annual usage of components, 4000 The company has been offered a discount of 2 per cent on the price of the component provided the lot size is 2000 components at a time. Q2) Advise whether the quantity discount offer can be accepted (assume that the inventory carrying cost does not vary according to discount policy). Q3) Would your advise differ if the company is offered 5 per cent discount on a single order? Q4) Explain the term EOQ? CASE STUDY : 2 In an engineering c...