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my mgt 402 

What is deffernce between incremental cost and avoidable cost. 3 no ka tha...

5 no ka tha

Hussain Corporation annually produces 10,000 units of assembly part number 206. An outside supplier has offered to manufacture the part at Rs. 9 per unit. If Hussain Corporation decides to buy the part, they will be able to rent the existing area for Rs. 8,000 per year. Listed below are Hussain’s total costs to produce part 206:




Total (Rs.)

Direct material



Direct Labor



Variable overhead



Fixed Overhead







Assuming that no additional costs are incurred in purchasing the part, what should be the opportunity cost for Hussain Corporation if it will buy? Support your answer with computations.


ek question kuch yu tha k

october k units 30000

november k units 38000

december k units 41000

fine the direct labor budget cost if per units taks 3 hour and the price of per hour is Rs,3  


Muhammad Rizwan

Boys & Girls

Ladies & Gentlemen

Male & Female

Mundio Te Kukrion 




62 MCQs and 7 Long Question (3+3+3+4+4+4+4)


Question # 01 (5 Marks)

Sale : 6,00,000

Markup : 20% of Cost

Find Cost & Profit?


Question # 02 (5 Marks)

Draw & Explain CVP Graph.


Question # 03 (5 Marks)

If company manufacture machinery then cost will be

Material 4.5 PUCost

Labour 4.6

Fixed cost 3.7

Variable Cost 3.45

But if company buy that machinery from the other then cost will be 15 Rs.

What is favorable for the company.


Question # 4 (5 Marks)

Fixed Expenses = 12,150

M. Safety = 25%

Break Even Points = 40,500

C. M = 30% of sale

Req: What is actual sale L very harsh Question


Question # 05 (3 Marks)

Contribution margin 1,50,000 and Fixed cost is 1,30,000 (1,20,000 Could be eliminate)

What should company do. Shutdown this project or not.

What is relevant and irrelevant cost.


Question # 06 (3 Marks)

Define Principal Budget?


Question # 07 (3 Marks)

Gross Profit 6,58,000

Selling Exp : 135000

Admin Exp : 1,20,000

Financial Exp: 95,000

Find Profit Before Tax.


Best of Luck


Waqar Ali Ather Bukhari 

Mgt402 Fall 2011 Final Term Feb 2012 – VU Current Paper – 06 Feb 2012

Define Capacity and Volume budgeted 3 marks

Numerical Question 5 marks
Efficiency Ratio?


Q. 69 Classify the following expenses as Financial or Administrative expense by filling the appropriate boxes

Expenses Nature of Expense
Salaries of employee Admin
Interest paid on debts Financial
Utility Bills Admin
Depreciation of office equipment Admin
Interest paid on debentures Financial


1. Bazar Company is a small family business that produces wooden plaques and trophies:

Selling price per unit
Variable cost per unit
Contribution margin per unit
$ 6
$ 7
Contribution margin ratio
In producing the items, the primary “bottleneck” is due to the fact the company only has one machine, a sander, to sand the wood that is used for the plaques or the trophies. Generally, the wood required for each plaque takes 0.25 hour to sand, while the word required for each trophy takes 0.50 hour to sand. Based on the constraint related to the machine time, which product should be emphasized if only limited machine time is available?


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