Compensation and Dividend Calculations Quiz

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Questions and Answers

What is the formula used to calculate the dividend charges payable to General revenue for a year?

  • Capital-at-charge to end of the previous year plus half of the anticipated capital outlay for the year (correct)
  • Total revenue minus total expenses for the year
  • Anticipated capital outlay for the year only
  • Capital-at-charge at end of the year only

Which of the following components can be reduced by GM for exports with the concurrence of FA and CAO?

  • Fixed components of overheads and profit (correct)
  • Variable costs associated with production
  • Direct labor costs
  • Marketing and distribution expenses

What does the proforma charges mentioned in the table primarily consist of?

  • Direct expenses incurred during production
  • Direct worker wages and salaries
  • Overhead costs only
  • Dividend and other overhead charges (correct)

How should the dividend be distributed according to the instructions provided?

<p>Over the number of locomotives, coaches, etc. (C)</p> Signup and view all the answers

In the percentage calculations for actuals mentioned, which of the following categories is included?

<p>Private parties and public sector undertakings (D)</p> Signup and view all the answers

Which of the following components is likely included in the incentive bonus structure for direct workers?

<p>Labor Costs (D)</p> Signup and view all the answers

What type of compensation is typically offered to direct workers in the context provided?

<p>Performance-Based Bonuses (D)</p> Signup and view all the answers

Which category of workers is considered essential indirect workers as per the outlined structure?

<p>Administrative Staff (B)</p> Signup and view all the answers

In the standard hour calculation, which of the following is included under the categories listed in the structure?

<p>Production Overhead (D)</p> Signup and view all the answers

What factor affects the adjustments made to bonus payments in the structure provided?

<p>Actual Performance Metrics (C)</p> Signup and view all the answers

What influences the calculation of the percentages for Factory Overhead as described?

<p>Direct wages of Production Jobs including incentive bonuses and overtime payments (A)</p> Signup and view all the answers

Which position is responsible for issuing fresh work orders for Overheads in consultation with finance?

<p>Chief Mechanical Engineer of every Production unit (A)</p> Signup and view all the answers

How frequently should the overhead percentages be reviewed?

<p>Once in 5 years as stipulated (A)</p> Signup and view all the answers

When calculating overhead for exports, who has the authority to reduce fixed overheads and profit?

<p>General Manager of a zonal Railway/Production Unit (C)</p> Signup and view all the answers

Which of these is NOT a reason for overhead allocation described in the content?

<p>Allocation of bonuses for all workers based on hours worked (A)</p> Signup and view all the answers

Flashcards

Direct Labour

The cost directly associated with creating a product or providing service.

Export Overheads

Fixed components of overheads and profit for exports.

Material Cost

The cost of raw materials used to make a product or provide a service.

Proforma Charges Components

Dividend charges for General revenue, calculated on capital and outlay.

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SOH (Stock)

Cost of materials or finished goods held in stock.

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GM Concurrence

General Manager's approval necessary for export cost adjustments.

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FA & CAO Approval

Financial Analyst and Chief Accounting Officer's approval for export cost changes.

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Profit

The financial gain from the production process.

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Dividend Calculation

Annual dividend charges calculated based on capital-at-charge and anticipated capital outlay.

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Packing

The cost of packaging a product or service.

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Overhead Allocation

Distributing factory, administrative, and township overhead costs to production jobs based on direct labor.

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Overhead Percentage Calculation

Calculating overhead rates based on previous year's actual expenses and budgeting, reviewed every five years for factory overhead, and annually for administrative and township overheads.

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Stores Overhead Levy

Applying a percentage rate to direct stores costs for calculating stores overhead.

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Government/Export Profit Margins

Profit on projects for government departments (other than Indian Railways, Railway PSUs, other PSUs), private parties, and exports charged as a percentage of total estimated costs, adhering to Railway Board instructions.

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Export Overhead/Profit Reduction

General Managers or Chief Administrative Officers have the power to reduce fixed overhead and profit percentages for exports to remain competitive in international markets, in accordance with special instructions.

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Study Notes

Indian Railway Rolling Stock Code

  • This code was first published provisionally in March 1940.
  • It had four reprint editions in 1944, 1950, 1970, 1974, and 1991.
  • Subsequent updates were brought in 2008, 2016.
  • This code was revised incorporating inputs from IRIMEE and Railway officers.
  • It supersedes all existing rules and orders issued by the railway board for the subjects within it, unless otherwise implied.
  • Information, suggestions and comments welcome for future editions.

Preface

  • The State Railway Code for the Mechanical Department was first published provisionally in 1940.
  • The first reprint edition was issued in 1944.
  • Subsequent revisions were published in 1950, 1970, 1974, and 1991 with correction slips up to No. 7 of 2008.
  • It was updated in 2016 with new techniques in manufacturing and maintenance, group incentive schemes, biometric attendance systems, and environmental management.
  • This code is now revised incorporating important issues, such as, linkage of biometric attendance with wages, costing and incentives, and more.

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