ABC Limited has current PBIT of ?19.20 lakhs on total assets of ?96 lakhs. The company has decided to increase assets by ?24 lakhs, which is expected to increase the operating profit before depreciation by ?8.40 lakhs. There will be a net increase in depreciation by ?4.80 lakhs. This will result in ROI

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Syllabus (with weightage)
A. Cost Management 20%
B. Strategic Cost Management Tools and Techniques 50%
C. Strategic Cost Management - Application of Statistical Techniques in Business Decisions 30%

Related Test: CMA Intermediate Exam: Cost and Management Accounting


ABC Limited has current PBIT of ?19.20 lakhs on total assets of ?96 lakhs. The company has decided to increase assets by ?24 lakhs, which is expected to increase the operating profit before depreciation by ?8.40 lakhs. There will be a net increase in depreciation by ?4.80 lakhs. This will result in ROI