Q8
(a) During a month, 4500 units were introduced into process A. The normal loss was estimated at 8% on input. At the end of the month, 2600 units had been produced and transferred to next process, 1400 units were incomplete and 500 units had been scrapped. It was estimated that uncompleted units had reached a stage in production as follows: Material—80% completed Labour—60% completed Overheads—50% completed The cost of 4500 units introduced was ₹ 10,500. Direct materials introduced during the process amounted to ₹ 2,400. Production overheads incurred were ₹ 3,490. Direct labour was ₹ 5,460. Units scrapped realized ₹ 3 each. The units scrapped have passed through the process, so were 100% completed as regards material, labour and overheads. Answer the following questions: (i) Prepare a statement of equivalent production. (7 marks) (ii) Evaluate the cost of abnormal loss, finished goods and closing stock. (10 marks) (iii) Prepare the process A account and abnormal loss account. (8 marks) (b) What are the major objectives of portfolio management? List the major ratios used to evaluate a portfolio. (10 marks) (c) "Marketing of non-profit organizations is a great challenge." Elaborate. What are the various dimensions of non-profit marketing? Explain. (15 marks)
हिंदी में प्रश्न पढ़ें
(a) एक महीने के दौरान, 4500 इकाइयों को प्रक्रिया A में लगाया है। निवेश पर सामान्य हानि का अनुमान 8% था। महीने के अंत में, 2600 इकाइयों का उत्पादन किया गया और अगली प्रक्रिया में स्थानांतरित कर दिया गया, 1400 इकाइयाँ अधूरी निर्मित थीं तथा 500 इकाइयों को नष्ट कर दिया गया। यह अनुमान लगाया गया था कि अपूर्ण इकाइयाँ उत्पादन में निम्नलिखित स्तर पर पहुँच गई थीं: सामग्री—80% पूर्ण श्रम—60% पूर्ण उपरिव्यय—50% पूर्ण लगाई गई 4500 इकाइयों की लागत ₹ 10,500 थी। प्रक्रिया के दौरान लगी प्रत्यक्ष सामग्री की लागत हुई ₹ 2,400। उत्पादन उपरिव्यय ₹ 3,490 हुआ। प्रत्यक्ष श्रम ₹ 5,460 लगा। रद्दी (नष्ट की गई) इकाइयों से ₹ 3 प्रति इकाई प्राप्त हुए। रद्दी इकाइयाँ प्रक्रिया से गुजर चुकी हैं, इसलिए वे सामग्री, श्रम तथा उपरिव्यय के संबंध में 100% पूर्ण थीं। निम्नलिखित प्रश्नों के उत्तर दीजिए: (i) समतुल्य उत्पादन का विवरण तैयार कीजिए। (7 अंक) (ii) असामान्य हानि, तैयार माल और अंतिम बचे माल की लागत का मूल्यांकन कीजिए। (10 अंक) (iii) प्रक्रिया A खाता एवं असामान्य हानि का खाता तैयार कीजिए। (8 अंक) (b) निवेश सूची (पोर्टफोलियो) प्रबंधन के प्रमुख उद्देश्य क्या हैं? निवेश सूची (पोर्टफोलियो) के मूल्यांकन में प्रयोग होने वाले प्रमुख अनुपातों की सूची बनाइए। (10 अंक) (c) "गैर-लाभकारी संगठनों का विपणन एक बड़ी चुनौती है।" स्पष्ट कीजिए। गैर-लाभकारी विपणन के विभिन्न आयाम क्या हैं? वर्णन कीजिए। (15 अंक)
Directive word: Calculate
This question asks you to calculate. The directive word signals the depth of analysis expected, the structure of your answer, and the weight of evidence you must bring.
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How this answer will be evaluated
Approach
This multi-part question requires precise numerical working for (a) followed by conceptual exposition for (b) and (c). Spend approximately 50% time on part (a) given its 25 marks and computational complexity—begin with equivalent production calculation, then cost apportionment, finally ledger accounts. Allocate 20% to part (b) covering portfolio objectives and ratios, and 30% to part (c) which demands critical elaboration on non-profit marketing challenges with dimensions. Present all numerical workings in tabular format with clear labeling of units, costs, and percentages.
Key points expected
- Part (a)(i): Equivalent production statement showing units for Material (3,720), Labour (3,440), and Overheads (3,300) with proper treatment of normal loss (360 units) and abnormal loss (140 units)
- Part (a)(ii): Cost per equivalent unit calculation (Material ₹2.50, Labour ₹1.50, Overhead ₹1.00) and valuation of abnormal loss (₹700), finished goods (₹10,400), and closing WIP (₹5,050)
- Part (a)(iii): Process A Account debited with ₹21,850 and credited with transfers, abnormal loss, and closing WIP; Abnormal Loss Account showing transfer to Costing P&L
- Part (b): Portfolio management objectives (security of principal, income stability, capital appreciation, liquidity, tax minimization) and key ratios (Sharpe, Treynor, Jensen's alpha, Sortino, Information ratio)
- Part (c): Challenges in non-profit marketing including intangibility of benefits, multiple stakeholders, resource constraints, and mission-market tension; dimensions covering product, price (donation), place (access), promotion, people, and publics
- Integration: Recognition that process costing uses weighted average method, portfolio ratios measure risk-adjusted returns, and non-profit marketing applies Kotler's societal marketing concept
Evaluation rubric
| Dimension | Weight | Max marks | Excellent | Average | Poor |
|---|---|---|---|---|---|
| Concept correctness | 25% | 12.5 | All calculations in (a) mathematically accurate with correct identification of normal loss (360 units), abnormal loss (140 units), and equivalent units; portfolio objectives and ratios precisely defined; non-profit marketing challenges substantiated with theoretical grounding | Minor computational errors in equivalent units or cost apportionment; generic listing of portfolio objectives without risk-return linkage; descriptive treatment of non-profit challenges without theoretical framework | Fundamental errors in distinguishing normal/abnormal loss, incorrect equivalent unit calculation, confused portfolio ratios, or purely anecdotal treatment of non-profit marketing |
| Framework citation | 20% | 10 | Explicit application of ICAI Cost Accounting Standard 2 for process costing; Markowitz mean-variance framework and CAPM for portfolio analysis; Kotler/Andreasen's non-profit marketing framework or Sargeant's donor behavior model | Implicit use of frameworks without naming; standard textbook definitions without attribution; missing linkage between theory and application | No recognizable framework; purely mechanical calculations or commonsense assertions without theoretical basis |
| Case / Indian example | 15% | 7.5 | For (b): cites SBI Magnum Equity Fund or HDFC Top 100 for portfolio evaluation; for (c): references CRY, Akshaya Patra, or Sulabh International to illustrate non-profit marketing dimensions and stakeholder complexity | Generic references to 'mutual funds' or 'NGOs' without specific naming; missing Indian context in portfolio or non-profit discussion | No examples cited; or irrelevant examples from for-profit sector applied to non-profit context |
| Multi-perspective analysis | 25% | 12.5 | For (a): shows awareness of alternative methods (FIFO vs weighted average); for (b): contrasts risk-adjusted return measures and their appropriate use; for (c): analyzes non-profit marketing from donor, beneficiary, volunteer, and societal perspectives with tension analysis | Single-method approach to process costing; unidimensional view of portfolio objectives; one-sided view of non-profit challenges | Mechanical computation without method awareness; purely descriptive listing without analytical depth; missing stakeholder perspective entirely |
| Conclusion & recommendation | 15% | 7.5 | Synthesizes that process costing reveals true unit economics for transfer pricing decisions; recommends appropriate portfolio strategy based on investor profile; proposes integrated marketing communication framework for non-profits balancing accountability and mission | Brief summary of calculations without managerial insight; generic conclusion on portfolio diversification; standard recommendations for non-profit visibility | No conclusion; or abrupt ending with 'hence proved'; missing linkage between analysis and practical implications |
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