CS Professional CMADD cheat sheet

Cost-Volume-Profit: Break-even units = Fixed Cost / Contribution per unit; Break-even sales = Fixed Cost / P/V ratio; P/V ratio = (Sales - Variable Cost) / Sales.

Margin of safety = Actual Sales - Break-even Sales; Margin of safety ratio = Margin of Safety / Actual Sales; Profit = Margin of Safety × P/V ratio.

Standard costing variances: Material price = (Standard Price - Actual Price) × Actual Quantity; Material usage = (Standard Quantity - Actual Quantity) × Standard Price.

Labour rate variance = (Standard Rate - Actual Rate) × Actual Hours; Labour efficiency = (Standard Hours - Actual Hours) × Standard Rate.

Overhead variances: Variable overhead expenditure = (Standard Rate - Actual Rate) × Actual Hours; Fixed overhead volume = (Actual Output - Budgeted Output) × Standard Fixed Rate per unit.

Reconciliation of profit: Budgeted profit ± Sales variances ± Cost variances = Actual profit; adverse (A) variances reduce profit, favourable (F) increase it.

Marginal costing vs absorption costing: Difference in profit = Closing stock × Fixed overhead absorption rate - Opening stock × Fixed overhead absorption rate.

Cost sheet elements: Prime cost = Direct material + Direct labour + Direct expenses; Factory cost = Prime cost + Factory overhead; Cost of production = Factory cost + Administration overhead; Cost of sales = Cost of production + Selling & distribution overhead; Sales = Cost of sales + Profit.

Residential status of individual: Basic condition - stay in India ≥182 days in the previous year, or ≥60 days in the previous year and ≥365 days in the four preceding years; additional conditions apply for RNOR.

Residential status of company: Indian company is always resident; foreign company is resident only if its place of effective management (POEM) in the previous year is in India.

Heads of income: Salaries; Income from house property; Profits and gains of business or profession; Capital gains; Income from other sources. Income from salary is taxed on due or receipt basis, whichever is earlier.

Deductions under Chapter VI-A: Section 80C (max ₹1.5 lakh), 80D (health insurance), 80E (education loan interest), 80G (donations), 80TTA (savings interest ₹10,000), 80TTB (senior citizens ₹50,000).

Capital gains: Long-term capital gain on listed equity shares/equity-oriented funds exceeding ₹1 lakh is taxed at 10% under section 112A without indexation; short-term at 15% under section 111A.

TDS rates: Salary u/s 192 at slab rates; interest u/s 194A at 10% (threshold ₹40,000 for banks, ₹5,000 for others); professional fees u/s 194J at 10%; rent u/s 194I at 10% (threshold ₹2.4 lakh p.a.).

Advance tax instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March; interest u/s 234B for default in payment, 234C for deferment of instalments.

Assessment procedures: Section 143(1) summary assessment; 143(2) scrutiny notice within 6 months from end of financial year of return filing; 147 income escaping assessment; 148 notice; 153 time limit for completion of assessment (usually 12 months from end of assessment year).

Ind AS 1 requires fair presentation, going concern, accrual basis, materiality, and aggregation; comparative information for prior period must be presented.

Ind AS 115 five-step model: identify contract; identify performance obligations; determine transaction price; allocate transaction price; recognise revenue when performance obligation satisfied (over time or at a point in time).

Ind AS 16: Property, plant and equipment initially at cost; subsequent measurement at cost or revaluation model; depreciation over useful life; residual value reviewed at least annually.

Ind AS 36: Impairment loss recognised when carrying amount exceeds recoverable amount (higher of fair value less costs of disposal and value in use); goodwill tested annually.

Ind AS 33: Basic EPS = (Profit or loss attributable to ordinary shareholders) / (Weighted average number of ordinary shares outstanding); diluted EPS adjusts for potential ordinary shares.

Ind AS 110: Control exists when investor has power over investee, exposure to variable returns, and ability to use power to affect returns; consolidation required for subsidiaries.

Ind AS 7: Cash flow statement classifies cash flows into operating, investing and financing activities; interest paid and dividends paid may be classified as operating or financing consistently.

Segment reporting (Ind AS 108): Reportable segment if revenue ≥10% of combined revenue, or profit/loss ≥10% of combined profit/loss, or assets ≥10% of combined assets; at least 75% of external revenue must be covered.

GST supply includes sale, transfer, barter, exchange, licence, rental, lease or disposal made for consideration in the course or furtherance of business; schedule I includes certain supplies without consideration.

Levy: CGST and SGST on intra-State supplies; IGST on inter-State supplies; GST rates 0%, 5%, 12%, 18%, 28% with cess on demerit goods.

Registration threshold: ₹40 lakh for goods (₹20 lakh for special category states), ₹20 lakh for services (₹10 lakh for special category states); compulsory registration for inter-State supply of goods, e-commerce operators, and casual taxable persons.

Time of supply: Goods - earlier of date of invoice or date of payment; Services - earlier of date of invoice (if issued within 30 days) or date of payment; reverse charge - earlier of receipt of goods/services or payment or invoice.

Input tax credit (ITC): Available on inputs, input services and capital goods used in business; blocked credits under section 17(5) include motor vehicles for passenger transport (seats ≤13), food and beverages, club membership, works contract for immovable property.

Returns: GSTR-1 (outward supplies) by 11th of next month; GSTR-3B (summary and payment) by 20th; GSTR-9 annual return by 31 December of next financial year; GSTR-9C reconciliation statement if turnover > ₹5 crore.

Customs valuation: Transaction value under section 14; includes cost of transport, insurance, loading/unloading to port of import; excludes landing charges after import; assessable value = CIF + 1% landing charges (if not included).

Customs duty types: Basic customs duty (BCD), Social Welfare Surcharge (10% of BCD), IGST on imports, anti-dumping duty, safeguard duty; duty drawback and EPCG schemes for exporters.

Activity-Based Costing (ABC): Costs assigned to activities based on cost drivers, then to products; hierarchy: unit-level, batch-level, product-level, facility-level activities.

Target costing: Target cost = Competitive price - Desired profit margin; cost reduction achieved through value engineering and functional analysis.

Life-cycle costing: Considers costs over product life cycle - R&D, design, manufacturing, marketing, distribution, customer service, disposal; 80-90% of costs committed at design stage.

Balanced Scorecard (Kaplan & Norton): Four perspectives - financial, customer, internal business process, learning and growth; strategy map links objectives causally.

Theory of Constraints (Goldratt): Identify bottleneck, exploit it, subordinate everything else, elevate bottleneck, repeat; throughput accounting focuses on throughput, inventory, operating expense.

Transfer pricing methods: Market price, cost-plus, negotiated, dual pricing; goal congruence and performance evaluation; minimum transfer price = variable cost + opportunity cost.

Cost of quality: Prevention costs, appraisal costs, internal failure costs, external failure costs; total quality cost = prevention + appraisal + internal failure + external failure; optimal quality level where total cost minimised.

Strategic performance measures: ROI = Operating profit / Capital employed; RI = Operating profit - (Capital employed × Imputed interest rate); EVA = NOPAT - (WACC × Invested capital).