Question
Find the cost of manufacturing each article if a
manufacturer estimates that on inspection 22% of the articles he produces will be rejected. He accepts an order to supply 84,000 articles at Rs. 4.5 each. He estimates the profit on his outlay including the manufacturing of rejected articles to be 17%.Solution
According to IND AS 115, when can revenue be recognized?
A project requires an investment of Rs. 10,00,000. It generates annual cash inflows of Rs. 3,00,000 for 5 years. If cost of capital is 10%, should the p...
A firm is considering replacing its old machine with a new one.
Old machine: Book value = ₹8L, Salvage = ₹2L
New machine: Cost = ₹20...
A firm is considering replacing its old machine with a new one.
Old machine: Book value = ₹8L, Salvage = ₹2L
New machine: Cost = ₹20...
A company with stable earnings announces a sudden, large cut in dividend despite strong retained earnings and no capital expenditure needs. Which interp...
At the end of the accounting year, all the nominal accounts of the ledger book are:
ABC Ltd. is evaluating a project requiring an initial investment of ₹50 lakhs. The project is expected to generate cash flows of ₹15 lakhs per year ...
ABC Ltd. is evaluating two projects. Project A requires ₹50 lakhs investment and offers IRR of 14%. Project B requires ₹40 lakhs and gives IRR of 12...
Which financing strategy balances liquidity risk and cost by matching short-term needs with short-term funds and permanent working capital with long-ter...
ABC Ltd operates at 80% capacity producing 16,000 units. The cost per unit is:
• Direct Material ₹50
• Direct Labour ₹20
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