Cost & Management Accounting: NMIMS Internal Assignment Applicable for June 2025 Examination

Cost & Management Accounting: NMIMS Internal Assignment Applicable for June 2025 Examination

Question 1 ABC Manufacturing Ltd. produces a single product and operates a factory where both direct labor costs and overhead costs are incurred. The company provides the following data for February:

• Labour Costing Data:Total direct wages paid: Rs. 50,000 Number of direct labor hours worked: 10,000 hours. Overtime premium included in wages: $2,000Employer’s contribution to benefits (social security, insurance, etc.): 10% of direct wages

• Overhead Costing Data:Total factory overhead costs: $40,000Overheads are absorbed based on direct labor hours

Required:

1. Calculate the total direct labor cost, considering the employer’s contribution.
2. Compute the direct labor cost per hour.
3. Determine the overhead absorption rate per labor hour.
4. If a job requires 50 labor hours, calculate the total labor and overhead cost assigned to the job.

(10 Marks)

Question 2 (A) Elaborate on the implementation of a Just-in-Time (JIT) inventory system impact the material cost control process in a manufacturing company and explain its importance.

(5 Marks)

Question 2 (B) Analyze how the method of valuing work-in-progress (prime cost vs. works cost) influences the final cost of goods sold and the financial reporting of a manufacturing company.

(5 Marks)

Assignment Marks: 20

Instructions

• All Questions carry equal marks
• All Questions are compulsory
• All answers to be explained in not more than 1000 words for question Q1 and for question Q2(A) and Q2(B) in not more than 500 words for each subsection. Use relevant examples,illustrations as far as possible
• All answers to be written individually. Discussion and group work is not advisable.
• Students are free to refer to any books/reference material/website/internet for attempting their assignments, but are not allowed to copy the matter as it is from the source of reference.
• Students should write the assignment in their own words. Copying of assignments from other students is not allowed
• Students should follow the following parameter for answering the assignment questions

 

For Theoretical Answer
Assessment Parameter	Weightage
Introduction	20%
Concepts and Application related to the question	60%
Conclusion	20%

For Numerical Answer
Assessment Parameter	Weightage
Understanding and usage of the formula	20%
Procedure / Steps	60%
Correct Answer & Interpretation	20%

PLEASE NOTE: This assignment is application based, you have to apply what you have learnt in this subject into real life scenario. You will find most of the information through internet search and the remaining from your common sense. None of the answers appear directly in the textbook chapters but are based on the content in the chapter