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Division A of a company manufactures a single product and the following data are provided:Sales = 25,000 unitsFixed Cost = ?4,00,000Depreciation = ?2,00,000Residual Income = ?30,000Net Assets = ?10,00,000Head Office assesses divisional performance by the method of Residual Income and uses cost of capital of 12%

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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


Division A of a company manufactures a single product and the following data are provided:<br>Sales = 25,000 units<br>Fixed Cost = ?4,00,000<br>Depreciation = ?2,00,000<br>Residual Income = ?30,000<br>Net Assets = ?10,00,000<br>Head Office assesses divisional performance by the method of Residual Income and uses cost of capital of 12%






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