Economics, Accounting & Business: Post your doubts here!

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SUMMERLOV35

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youzair said:
Need Help!!!

Business Studies, November 2011 variant 1

Q#2(a)
how to calculate increase in profit in this que?
as shown in mark scheme
Click to expand...


check TABLE 1 in the question paper...according to that
existing direct material cost= 4.25m (3m+1.25m)
add them all together and you get existing total costs 6.45m
now even if you buy from AAP, you will still have to pay
the management salaries and admin and selling overheads
so new costs will 6.5m (4.3+1.45+0.75)m
net profit+existing costs will give you the selling price
1.2m(see line 3 in the question paper)+6.45m=7.65

new net profit 7.65-6.5(new costs) 1.15m
 
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MnMz

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Anusuya said:
m/j 09 q 5...i didnot even get the ques. how is it done
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The answer is B right?
This is how its done
Share capital will increase by 600000 ( because convertible stock was converted to share capital)
Share capital = 2100000
They are asking for the value of a share on a net assets basis
= Net Assets/ share capital
= (2700-810)/2100 = 0.90 =)
 
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Saiyan

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Saiyan said:
I think, you are asking too many questions.
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Lets begin:

June 2003

Q.2 Answer D. Since the household derives twice as much as utility from the fifth kg of bananas as from the tenth kg of
apples and as the price of banana is twice as apple so according to the law of equi-marginal utility theory the consumer is at equilibrium.

Q.16 Answer C. If the value of the increase in the fish caught is less than the loss in value of output elsewhere
in the economy then there will no welfare loss from the action of the fishboats Welfare loss may then incur due to other reasons.

Q.20 Answer A. This is one of the views of the Keynesians. The other options are just contradicting. Recession can be caused by fluctuations in investment as this means that there is lack of business confidence.

Q.21 Answer A. Just remember the definition of accelerator. It is the change in investment due to change in national income or AD.

Q.22 Answer C. If unemployment benefits are reduced the autonomous consumption (consumption not influenced by income) will reduce and the curve shifts downwards.

Q.25 Answer A. In a developing country less capitals are used and most industries tend to be labour intensive as a result the ratio will be low.

Sorry I explained it short as I have also an accounting exam 2morrow. Hope this helped.
 
Anusuya

Anusuya

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MnMz said:
The answer is B right?
This is how its done
Share capital will increase by 600000 ( because convertible stock was converted to share capital)
Share capital = 2100000
They are asking for the value of a share on a net assets basis
= Net Assets/ share capital
= (2700-810)/2100 = 0.90 =)
Click to expand...
ehh okay...i got it....thnx !!
 
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Saiyan

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SUMMERLOV35 said:
check TABLE 1 in the question paper...according to that
existing direct material cost= 4.25m (3m+1.25m)
add them all together and you get existing total costs 6.45m
now even if you buy from AAP, you will still have to pay
the management salaries and admin and selling overheads
so new costs will 6.5m (4.3+1.45+0.75)m
net profit+existing costs will give you the selling price
1.2m(see line 3 in the question paper)+6.45m=7.65

new net profit 7.65-6.5(new costs) 1.15m
Click to expand...

Where did you get 4.25m? I can't find it.
 
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Saiyan

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Sorry now I got it by 4.3m, previously 4.25 they actually meant the total direct cost and then we had to add other overheads to find the cost of production. The language was confusing at first.
 
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Saiyan

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Anusuya said:
accounts m/j 09 (33) Q9 why is the long term loan 60 000?
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That's because 20, 000 was already paid from 100,000 and another 20,000 has been as current liabilities to be paid next year. So the remaining 60,000 is therefore a long term loan.
 
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Saiyan

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Can anyone say the difference between shareholder's equity and fund. I found that in some places it is the same and in others it is different.
 
Anusuya

Anusuya

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Saiyan said:
That's because 20, 000 was already paid from 100,000 and another 20,000 has been as current liabilities to be paid next year. So the remaining 60,000 is therefore a long term loan.
Click to expand...
how can we say 20,000 was already paid. as in...1st jan debenture was 10000 nd 20000 was payable that year right?? so how 60000?
 
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Saiyan

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Anusuya said:
how can we say 20,000 was already paid. as in...1st jan debenture was 10000 nd 20000 was payable that year right?? so how 60000?
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No the thing is that debenture was paid annually and we had to assume that it is paid evenly. BTW you wrote 10,000 but it will be 1000,000.
 
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