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3. From a natural material four products are synthesized - three in a crude state and
one as a by-product. The crude products are further refined which costs Rs. 2.00,
Rs. 1.6 and Re. 1.00 per kg of output respectively. The selling prices are fixed at
Rs.6.00, Rs. 4.50, Rs. 3.50 and Re. 0.50 per kg. respectively to a yield a profit
margin of 20 per cent on selling price. During a costing period the production
of these four products is 8,000 units, 5,000 units and 6,000 units of the refined
products and 2,000 units of the by-product. Find the actual profitability of each
refined product as a percentage on the selling price, if the joint costs total Rs.
50,800.
5. What is contribution analysis ? Explain its significance in cost volume profit analy-
sis.
8. What do you understand by Cost audit? Explain the scope of cost audit.
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