CA Final Paper 4 case studies
CA Final Paper 4 · Put your knowledge to work in context.
CA Final Paper 4 sits in Group II of the Final Examination of the Chartered Accountancy course offered by ICAI, the Institute of Chartered Accountants of India. The qualification is aimed at students who have already cleared the Intermediate level and completed the practical training requirements of the course; the Final Examination is the last academic hurdle before membership. The CA Final Paper 4 case studies are 5 cases and about 4,502 words.
1Transfer Pricing Under Partial and Full Capacity: A Two-Division Negotiation
Meridian Auto Systems has two divisions. The Components Division (CD) makes a solenoid valve in a plant with a hard capacity of 90,000 units a year; variable cost is ₹310 a unit and annual fixed cost is ₹9.4 crore.
853 words, about 4 min2Learning-Curve Tender Pricing and the Value of a Promised Follow-On Order
Precision Gears and Tooling has been invited to tender for 350 machined housings for a pump maker. A pilot batch of the first 50 housings, completed last month for another customer, absorbed 1,200 direct labour hours in total; the plant has historically achieved a 90% learning rate on this family of work and expects the same curve to apply.
911 words, about 5 min3Throughput Accounting at a Furnace Bottleneck: Product Mix, Special Order and Capacity Purchase
Apex Alloy Forgings runs a single heat-treatment furnace that constrains the whole plant; 3,500 furnace hours are available each month and no subcontracting is possible. Three products share the furnace.
936 words, about 5 min4Planning versus Operational Variances and the Decision to Investigate
Kaveri Industrial Valves prepared its annual budget for 12,000 valves. The material standard was set at 4.0 kg of imported alloy per valve at ₹150 a kg.
854 words, about 4 min5ROI, Residual Income and EVA: Investment, Disposal and Accounting Adjustment Bias
Sundaram Polymers evaluates its division heads on return on investment, and the manager of the Moulding Division is paid a bonus that rises sharply once divisional ROI exceeds 15%. The division's invested capital is ₹48 crore and its operating profit is ₹7.2 crore; the corporate cost of capital is 12%.
948 words, about 5 min