NTA UGC NET/JRF Exam, Dec. 2019 Commerce (Evening-Shift)

Conceptually Quality Circles can be described as a small group of employees of the same work area 'doing similar work that meets voluntarily and regularly to identify' analyze, and resolve work - related problems.

Cost behavior analysis refers to management's attempt to understand how operating costs change in relation to a change in an organization's level of activity.
The following are the methods of determining cost behavior:
(I) High and low point method
(II) Least square regression method
(III) Accounting or analytical approach

Sec.2(j) of the act defines a Void Contract as" A contract which ceases to be enforceable by ..... becomes void when it ceases to be enforceable" This makes all those contracts that are not enforceable by a court of law void.

Logistical efficiency Pertains to the process of how effectively a business conducts operation. This relates to all areas of the operation that include transportation, warehousing' and over all distribution in general.

A business with good logistics can keep track of product shipments and move products or information quickly to the correct locations. Therefore in recent year- the major gain in logistical efficiency have come from advances in information technology.

-Some of the duties of an auditor :-
(i) Ownership of fixed assets should be verified by examining the title deed by the auditor.
(ii) Auditor should ascertain that the assets are in the Possession of the client.
(iii) The auditor should satisfy himself that the assets have been valued in the financial statements according to the accounting principle.

Formula : R = rf + B(rm-rf)
where, R = Expected rate of return.
rf = risk free rate
rm = market rate of return
β = project beeta (systematic Risk)
R= 6+1.5(10-6) = 12%
Therefore if the risk - free return (Rf) is 6% Beta value (β) is 1.5 and market rate of return (Km) is 10% the expected rate of return would be 12%

A monopoly firm does not always earn super normal profits. rather than

(i) In the long run, if the super normal profits continue it will attract other producer to enter market and the monopoly will lose these profit and may have to shutdown its production if it incurs loses

(ii) Sweezy's kinked demand curve model is the best known model explaining relatively more satisfactory behaviour of oligopoly firm for price rigidity.

(iii) A perfectly competitive firm is price taker not price maker.
(iv) firm under monopolistic completion earn only normal profits in the long run.

Audit management is responsible for ensuring that board
- approved audit directives are implement. Audit management helps simplify and well-organize the workflow and collaboration process of compiling audits.

Most audit teams heavily rely on email and shared drive for sharing information with each other. Typically task such as submitting client request sender reminder and following up on finding are all done from using broad tools.

-Process of management Audit-  
(i) Identification of responsibility center
(ii) Review of performance of each responsibility center.
(iii) Review of orgnizational structure

In the case consumers equilibrium to be explained through an ordinal approach, when there are two commodity with their prices given and with limited income of the consumer, the following information is required in the correct sequence :-

(i) Indifference map - The graphical presentation of the indifference schedule is known as the indifference curve.
An indifference schedule is table which represent various combinations of two goods, which yield equal satisfaction to consumer.
(2) Price line/ Budget line - The budget line is a graphical delineation of all feasible combinations of two commodities that can be bought with provided income and cost so that the price of each of these combination is equivalent to the monetary earnings of the customer.
(3) Equality of slopes of IC and budget line : - Note that the equilibrium quantities are those for which the slope of the indifference curve equal the slope of the budget line that is, where the marginal rate substitution equals the price ratio.
(4) Point of tangency between IC and budget line.