ZEN Manufacturing Pvt. Ltd., headquartered in Pune, Maharashtra, is a mid-sized but rapidly growing enterprise specializing in the production of…

ZEN Manufacturing Pvt. Ltd., headquartered in Pune, Maharashtra, is a mid-sized but rapidly growing enterprise specializing in the production of precision-engineered automobile components tailored specifically for the electric vehicle (EV) industry. With India's EV segment witnessing exponential growth driven by sustainability goals and government incentives, ZEN has emerged as a trusted Tier-2 supplier to some of the country's leading electric vehicle manufacturers. The company operates with a mission to deliver high-quality, durable, and technologically advanced components that meet stringent safety and efficiency standards. Its operations encompass R&D, material procurement, in-house manufacturing, and logistics support — all backed by a strong team of engineers, production planners, and administrative personnel. With a focus on continuous process improvement and cost competitiveness, ZEN undertakes annual internal cost audits to evaluate operational efficiency, identify cost leakages, and support strategic decision-making. As part of this year's financial review for the period ending 31st March, 2025, the company has appointed you, a newly hired Cost Consultant, to analyze its cost performance, prepare a comprehensive cost sheet, and evaluate the profitability of its operations based on the financial data provided. Particulars Amount (₹) Purchase of raw materials 96,50,000 Consumable materials used 5,25,000 Direct labour wages 72,80,000 Freight and carriage inward 2,15,000 Wages to floor supervisors and store assistants 9,60,000 Indirect wages to factory staff 1,75,000 R&D expenses related to enhancing production methods 11,20,000 Salaries to accounts and admin staff 8,50,000 Penalty paid for the late payment of interest 80,000 Employer's contribution to EPF & ESI 8,00,000 Electricity and fuel used in production 30,50,000 Production scheduling & planning office expenses 13,50,000 Delivery personnel salaries 15,20,000 Income tax for AY 2024-25 3,10,000 Statutory audit fees 2,20,000 Cost audit fees 95,000 Honorarium to independent board members 10,50,000 Contribution to disaster relief fund 1,40,000 Total Value of Sales 3,12,80,000 Inventory details: Particulars As on 01-04-2024 (₹) As on 31-03-2025 (₹) Raw Materials 7,10,000 5,40,000 Work-in-Progress 8,50,000 7,25,000 Finished Goods 16,20,000 11,80,000 Based on the above information, as a Cost Consultant you are required to answer the following 5 MCQs: