Page 211 - DMGT202_COST_AND_MANAGEMENT_ACCOUNTING

Cost and Management Accounting

Notes

(a) Using the information in the table explain the comparative attractiveness of the two
firms to a potential investor.

(b) Why is it important that potential investors should be aware of the ratio of ordinary
share capital to other forms of long-term fi nance?

Answers: Self Assessment

1. fi nancial statement 2. quantitative
3. capital structure 4. profi tability
5. current assets 6. Closing Stock

7. super quick assets 8. False
9. False 10. True
11. (d) 12. (d)
13. (c) 14. earning capacity

15. cost of goods sold 16. capital employed
11.10 Further Readings

Books B.M. Lall Nigam and I.C. Jain, Cost Accounting, Prentice-Hall of India (P) Ltd.
Hilton, Maher and Selto, Cost Management, 2nd Edition, Tata McGraw-Hill
Publishing Company Ltd.
M.N. Arora, Cost and Management Accounting, 8th Edition, Vikas Publishing House
(P) Ltd.
M.P. Pandikumar, Management Accounting, Excel Books.

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