CA Final Mock Test Papers and their Solutions for MAY 2012

CA Final Mock Test Papers and their Solutions for MAY 2012 

                                                                                       

There are 2 Sets of each Paper..


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PIL filed against ICAI for mistakes in question papers of November,11 Final Exam

SUMMARY OF MISTAKES IN THE CA FINAL NOVEMBER 2011 EXAMS CONDUCTED BY INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA (A BODY ESTABLISHED UNDER THE ACT OF PARLIAMENT)

(Mistakes /Errors committed by respondent 2 while setting and evaluating the papers which would have a direct impact on the marks obtained by the students) 

Strategic Financial Management – Group I Paper 2

Question No.		Particulars	Marks Allotted
3 (a)		Business valuations	10
3 (b)		Convertible Debentures	6
		Total	16

 Advanced Management Accounting Group II Paper 5

Question No.		Particulars	Marks Allotted
1 (b)	Incremental Cost *		5
1 (d)	Total Quality Management		1
3 (a)	Activity Based Costing*		8
3 (b)	Transfer Pricing		8
4 (b)	Step Fixed Cost – CVP Analysis*		6
6 (a)	Network Analysis		10
Total			38

 MISTAKES CLASSIFIED AS FOLLOWS:

• Mistakes admitted by the Respondent 2- Paper 5- Q. 3(b)= 8 marks
• Mistakes apparent on the face of the record- Paper 5- Q.1. (b),1 (d), 3(a), 6(a)= 24 marks , Paper 2- Q.3(a), 3(b)= 16 marks
• Mistakes confirmed by experts and subject to interpretation- Paper 5- Q.4 (b)= 6 marks
  

CITATIONS OF HON’BLE SUPREME COURT FOR GRANTING THE PRAYER

• Sahiti and Ors. Vs. Respondent: The Chancellor, Dr. N.T.R. University of Health Sciences and Ors 6202 of 2008/ Decided on 22.10.2008.

-“The above decision deals with the right of the student or candidate to claim re-examination/re evaluation of his answer sheet and the power of the High Court to order revaluation of answer sheets. It does not deal with the power of the Board to order re-evaluation of answer books if factual scenario so demands. Award of marks by an examiner has to be fair and considering the fact that re-evaluation is not permissible under the Statute at the instance of candidate, the examiner has to be careful, cautious and has the duty to ensure that the answers are properly evaluated. Therefore, where the authorities find that award of marks by an examiner is not fair or that the examiner was not careful in evaluating the answer scripts re-evaluation may be found necessary. There may be several instances wherein re-evaluation of the answer scripts may be required to be ordered and this Court need not make an exhaustive catalogue of the same. However, if the authorities are of the opinion that re-evaluation of the answer scripts are necessary then the Court would be slow to substitute its own views for that of those who are expert in academic matters”.

Brief Comments and Suggestion for revaluation necessitated because of the mistake of the respondent:

The Normal Practice in all the exams is to give Full Credit for the student who attempts the wrong question. But in this type of professional exams where students of high preparation when they see the question is wrong or confusing they may not like to take a risk and solve them. So the marks obtained by the student should be suitably adjusted, for example, if the actual marks awarded to the student is say 31% in Paper 5, His marks must be changed to (31/62)*100 = 50 Marks. This method should be the best in our opinion as the student must solve all the questions, as they are compulsory and if he is declared fail he must reappear all the four papers in the group again.

While considering the above we should first take into consideration the psychology of the student who will have to write answer to the question asked. If there is confusion because of the errors, the student will not be in a position to handle it. If we take Question no. 3(a) in SFM, even a normal person will know that it is a glaring mistake but the institute solved it with the mistake and awarded marks for the students who did the mistake. So, if a student identifies the mistake (no one will take the risk), he would not have got marks.

Let us take a similar situation, Question No. 1(b) or 3 (b) in paper 5, in spite of being asked wrongly they were solved after taking into consideration the mistake. Thus a student who identifies the mistake and solves would have got marks (total confusion and lack of clarity arising out of the wrong setting of the papers).

Question No. 3 (a), the answer given assumes that introduction of ABC will reduce the cost which is a total mistake, as ABC helps only in scientific ascertainment of cost of a product and it is not a tool of cost reduction. So, no student would have answered according the examiners expectation and would have got very low marks for the correct answer.

Question No. 4 (b), the workings given in the answer are not asked in the question. First of all the question should have been asked to calculate the Break Even Point. Whereas the actual question is to calculate the number of students required to cross the Break Even Point. Crossing may be just crossing or anything more. No student would have done the working as it was not asked. So, he would have lost marks for the same on account of the fault of the respondent.

Question No. 1 (d), inspection of raw material is taken as a preventive cost in the suggested answer. The Same question was asked in May 2011 where the suggested answer says it is an appraisal cost. So, if one is correct the other should have been wrong even according to the respondent 2.

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How to Turn a Scanned Document Into Microsoft Word Document

How to Turn a Scanned Document Into Microsoft Word Document

1.Scan the page you want to convert into a Microsoft Word document.

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CA Final advanced management accounting (costing) - Complete theory

	AMA THEORY MARKS CHAPTER WISE  NOV 2008 TO NOV 2011
CHPT	NAME	MARKS
1	Developments  in the  Business  Environment	77
2	Cost Concepts in Decision Making	14
3	CVP Analysis and Decision Making	0
4	Pricing Decision	19
5	Budget and Budgetary Co ntrol	8
6	Standard Costing	0
7	Costing of Service Sector	8
8	Transfer Pricing	0
9	Uniform Costing and Inter Firm Comparison	8
10	Cost Sheet,  Profitability Analysis  And Comparison	0
11	Linear Programming	0
12	Transportation of Problem	0
13	The Assignment Problem	4
14	Critical Path Lab	8
15	Programme Evaluation and Review Technique	5
16	Simulation	8
17	Learning Curve Theory	8
	TOTAL	167

CHAPTER	QUESTIONS
1	Developments  in the  Business  Environment
1	Explain the essential features of Life-cycle costing.  (5 Marks)(June, 2009)
1	Briefly explain the phases in the life cycle of a product.    (4  Marks)
1	What is disinvestments strategy? Highlight the main reasons for disinvestments.           (4 Marks)(June, 2009)
1	What are the critical success factors for the implementation of a “Total Quality Management” programme?
1	List out the remedies available for difficulties experienced during implementation of PRAISE.
1	How can value analysis achieve cost reduction?   (5 Marks)(Nov., 2009)
1	Classify the following items under the three measures used in the theory of constraints:
1	Name any four stage in the process of bench marking  (4 Marks) (May 2011)
1	Differentiate between ‘Traditional Management Accounting’ and ‘Value Chain Analysis in the strategic framework’
1	Describe the Just-in-time systems  (6 Marks) (Nov., 2008)
1	What  is  Backflushing  in  JIT?  State  the  problems  that  must  be  addressed  for  the  effective functioning of the system.
1	Explain the major components of balanced score card.  (4 Marks)(Nov., 2010)
1	Classify the following measures under appropriate categories in a balanced score card for a banking company which excels in it s home loan products
1	Classify the following ite3ms  under appropriate categories of equality costs viz. Prevention Costs, appraisal Cost, Internal Failure Costs and External Failure cost
1	Brief the principles associated with synchronous manufacturing.  (5 Marks)(May, 2010)
1	Mention the data required to operate the material requirement planning system.
1	Explain the pre-requisites for successful operation of material requirement planning.
2	Cost Concepts in Decision Making
2	Explain briefly the concepts of Opportunity costs and Relevant costs.  (4 Marks)(June, 2009)
2	What are the applications of incremental/differential costs?  (5 Marks)(May, 2010)
2	Pick out from each of the following items, costs that can be classified under ‘committed fixed costs’ or ‘discretionary fixed costs”.
3	CVP Analysis and Decision Making
4	Pricing Decision
4	What are the disadvantages of Cost Plus Pricing ?   (5 Marks) (May, 2011)
4	Explain briefly the conc ept of skimming pricing policy.    (2 Marks) (Nov., 2009)
4	Briefly explain skimming pricing and penetration pricing policies.  (4 Marks) (Nov., 2008)
4	What is Price Discrimination? Under what circumstances it is possible?   (4 Marks)
4	Explain briefly Pareto analysis and mention some of its uses.   (4  Marks)
5	Budget and Budgetary Co ntrol
5	What are the various formulae used in calculating budget ratios?  (3 Marks)(June,   2009)
5	What are the steps involved in Zero- base budgeting?  (5 Marks) (Nov.,2010)
6	STANDARD COSTING
7	Costing of Service Sector
7	Give an appropriate cost unit for each of the following service sectors:
7	“Customer profile is  important in charging cost.” Explain this statement in the light of customer costing in service sector.
8	T RANSFER P RICING
9	Uniform Costing and Inter Firm Comparison
9	What is uniform costing? Why is it recommended?  (4 Marks)(June, 2009)
9	What are the essential requisites for the installation of Uniform costing system?
10	Cost Sheet,  Profitability Analysis  And Comparison
11	LINEAR PRAGRAMMING
12	TRANSPORTAION PROBLEMS
13	The Assignment Problem
13	In an assignment problem to assign jobs to men to minimize the time taken, suppose that one man does not know how to do a particular job, how will you eliminate this allocation from the
14	Critical Path Analysis
14	Explain the following in the context of a network:   (i)   Critical path (ii)   Dummy activity.
14	List the 5 steps involved in the methodology of critical path analysis.   (4 Marks)(Nov., 2010)
15	Programme Evaluation and Review Technique
15	State any 5 limitations of the assumptions of PERT and CPM   (5  Marks)
16	Simulation
16	What are the steps involved in carrying out Monte Carlo simulation model?   (4 Marks)(Nov., 2010)
16	what are the steps involved in the simulati on process?    (4  Marks)
17	Learning Curve Theory
17	Explain distinctive features of learning curve theory in manufacturing environment.
17	What are the limitations of the learning curve theory ?   (4  Marks)