Mathematical Statistics with Applications Text book
MATH 001

Spring 2008
UNITV
Breakevenanalysis: concept of costvolumeprofit relationship, mechanics of B.E. analysis,
Determination of Break even point, Breakevengraph and assumptions of BEP,
importance, Margin of safety and angle of incidence. Application of BEP for var
Mathematical Statistics with Applications Text book
MATH 001

Spring 2008
UNITIII
Costing for specific industries: Unit costing, job costing, cost sheet and tender and process costing and their
variants, treatment of normal losses and abnormal losses, interprocess profits, costing for byproducts and
equivalent production.
U
Mathematical Statistics with Applications Text book
MATH 001

Spring 2008
COST AND MANAGEMENT ACCOUNTING
Introduction to management accounting: Management accounting Vs. Cost accounting
vs. financial accounting, role of accounting information in planning and control, cost
concepts and managerial use of classification of costs.
Mathematical Statistics with Applications Text book
MATH 001

Spring 2008
UNITIV: Marginal Costing: Introduction, Application of Marginal costing in terms of cost
control , profit planning, Closing down a plant, dropping a product line, charging general and
specific fixed costs, fixation of selling price, make or buy decisions
Mathematical Statistics with Applications Text book
MATH 001

Spring 2008
Breakeven Point
P.No.1
From the following information calculate (i)Breakeven point (units), (ii)Required sales
to earn a profit margin of Rs.36,000.
Fixed Cost
Variable Cost per UnitSelling Price per unit 
Rs.1,80,000
Rs.2
Rs.20.
Solution:
(a)Breakeve
Mathematical Statistics with Applications Text book
MATH 001

Spring 2008
UNITII
Cost analysis and control: Direct and Indirect expenses, allocation and apportionment of
overheads, calculation of machine hour rate.
COST ACCOUNTING
Cost : The amount of expenditure incurred on a specified thing or activity is called
Cost.
Cost
Mathematical Statistics with Applications Text book
MATH 001

Spring 2008
Meaning of Interfirm Comparison:
Interfirm comparison is a technique of evaluating the performances, efficiencies, costs
and profits of firms in an industry. It consists of voluntary exchange of information/data
concerning costs, prices, profits, produc
Mathematical Statistics with Applications Text book
MATH 001

Spring 2008
FLEXIBLE BUDGETS
Definition: The Institute of Cost and Works Accountants of England defines a Flexible Budget as
a budget namely (a)Multiactivity methods and (b)Budget cost allowance method.
(a)Multiactivity method: The multiactivity method involves pr
Mathematical Statistics with Applications Text book
MATH 001

Spring 2008
UnitVI: Budgetary Control:
Budget,
budgetary control,
steps in budgetary control,
Flexible budget,
Different types of budgets:
sales budget, cash budget,
production budget, master budget,
Performance budgets,
material Vs. purchase budgets,
concept of Zer
Mathematical Statistics with Applications Text book
MATH 001

Spring 2008
The following description gives the regression assumptions and the patterns in residual
plots indicating violations of these assumptionsThe constant variance assumption:
A residual plot that fans out indicates that the error terms are more spread out as t