CA Inter Cost & Mgmt

- Pick the option first, then back-calculate — in a 2-mark MCQ, write 'Answer: (A)' on line 1 so the examiner awards the MCQ mark even if they stop reading.
- Compute Raw Material Consumed in one clean chain — Opening stock + Purchases + Freight inwards − Closing stock; show each line separately because freight is the trap step.
- Apply the 30% rate explicitly — write '30% × ₹50,70,000 = ₹15,21,000' as its own line; don't embed it mid-sentence or the step mark evaporates.
- Exclude GM salary with a one-liner reason — state 'Salary of General Manager is administration overhead, excluded from direct employee cost' to show you know WHY, not just that you dropped it.

- Segregate variable and fixed costs first — list all variable cost elements and sum them separately; examiners award method marks for this split even in MCQs, so show the ₹20,52,000 total variable cost explicitly.
- Calculate contribution per unit — divide total contribution by 36,000 units to get ₹18/unit; writing this single line protects your marks if the final answer has an arithmetic slip.
- Apply the 10% cut to UNITS, not to profit — reduce to 32,400 units, then multiply by contribution per unit; this is the one mechanical step that separates full-scorers from partial ones.
- Deduct fixed costs as a lump sum — show ₹4,68,000 subtracted once from total contribution, since fixed costs don't change with volume; this line is your proof that you understand marginal costing logic.

- Write both variance relationships first — MCV = MPV + MUV, and MUV = MMV + MYV — because the examiner needs to see you know the tree before you plug numbers.
- Sign convention line is non-negotiable — state '(F) = positive, (A) = negative' before any substitution, or your arithmetic looks random even if correct.
- Solve MPV first using Relationship 1, substituting MCV and MUV directly — this is a two-step linear solve, not a big calculation, so show every substitution on its own line.
- Solve MMV next using Relationship 2, plugging in MUV and MYV — keep the signs consistent with what you declared above, and circle/bold the final value.
- State the answer option explicitly — write 'Hence, Option (D)' at the end; in MCQ format, an unmarked answer loses the mark even if your working is right.