Financial Management, Question Paper Download for B.Sc. Fashion Merchandising and Retail Management, Previous years Examination.

B.Sc. Fashion Merchandising and Retail Management (BSC FMRM)
Bfw-023: Financial Management
Time: 3 hours Maximum Marks: 70

Note: Attempt any five questions. All questions carry equal marks.

1. ABC Ltd. has prepared the budget for the production of 1,00,000 units of a commodity. Detail is given below:

 

The actual production during the period was only 60,000 units. Calculate the Revised Budgeted Cost per unit.

2. (a) What is financial management? Explain the objectives of financial management.

(b) What is meant by cash budget? What are the objectives to prepare cash budget? Explain the motives for holding cash.

3. Following data are related to the company producing the product during the month of January:

 

4. A product passes through three processes namely A, B and C. From the following information prepare the Process Accounts:

 

Management expenses were 17,500 and Selling expenses 10,000. Two-third of the output of Process A and one-half of Process B output passes to the next process and the balance of A and B and the entire output of Process C is sold. Prepare all Process Accounts and Statement of Profit.

5. Two businesses, AB Ltd. and CD Ltd., sell the same type of product in the same type of market. Their budgeted P&L A/c for the year ending 31st March, 2007 are as follows:

 

You are required to calculate

(a) Break-even-point of each business.

(b) State which business is likely to earn greater profits in the following conditions:

(i) Heavy demand for the product

(ii) Low demand for the product

6. What are the main sources of funds? Explain any three sources with their merits and demerits.