Effect of Double Shift Working (Cost Accounting)

The greatest economy in introducing double shift is the greater use of fixed assets. Though production increases but little or very marginal funds may be required for additional assets.

Let's see the impact of double shift-

• Double shift will obviously result in increase in stock (Raw Materials) as the production rises. But, it may be possible that increase may not be proportionate to production as as minimum level of stocks may not be higher. Thus, it may be possible that stocks may not be required to be doubled even if production goes up by double-fold.
• The amount of materials in process (Work-in-progress) may not change due to double shift since work started in first shift will be completed in second hence the materials in process will be same as single shift.  

In examination we can double the Raw Materials but not Work-in-Progress

Is Chartered Accountancy career worth it?

The short answer: YES.

The long answer: The following answer has been written w.r.t. the Indian Chartered Accountancy exam.

1. The 1st Level –

a. Common Proficiency Test (CPT) which is an objective based test.

b. The earliest you can take this test is along with you 12 grade exams. So, you are expected to balance and score well both in your HSC and your CPT. 

c. The passing percentage of CPT is roughly around 25%.

d. Meaning out of the 500 people who appeared 125 managed to clear and go to the next level.

2. The 2nd Level –

a. Integrated Professional Competence Exam (IPCE) which comprises of 7 papers.

b. These 7 papers are divided into 2 groups which can be either taken individually or together.

c.  Assuming a person clears in the first attempt in CPT, he / she is expected to study and pass IPCE along with first year of BCom.

d. The passing percentage is roughly around 10%.

e. Meaning out of the 125 people who managed to clear CPT, only 12.5 people will go to the next level.

3. The hidden 3rd Level – A person clearing the 1st  group of IPCE is eligible to undergo a mandatory 3 year period of articleship. This is the best and the worst part of the course. You are expected to learn everything, solve everything and also balance your preparations for your final exams. The bigger / more reputed your firm is, the more tiresome the working hours will be. And yes, the stipend is not famed for being generous.

4. The Final Exam –

a. The Final Exam comprises of 8 papers divided into 2 groups.

b. Assuming a person clears all the previous exams at the earliest and also undergoes articleship as prescribed, he will be eligible for this exam at the age of 21.

c. The passing percentage is roughly around 8%.

d. Out of the 12.5 people who attempted only 1 will clear. That’s right, only one out of 500 becomes a Chartered Accountant.

So should you do it?

The course is spread over a minimum of 5 years and hence requires a significant investment of time. During these 5 years only dedication and hard work can guarantee a fruitful outcome.

And yes all the hard work is absolutely worth it. The moment you become a CA, your professional life is guaranteed to be a success.

The wide vast world opens up to you with innumerable opportunities from diverse sectors Banking, Accounting, Taxation, Audit, Management Consultancy, Cost Accounting, etc. all over the world.

The Indian Chartered Accountant is reputed throughout the world as a force to be reckoned with, hence global opportunities await.

Yes, you should do it. It is not an easy path, but neither is anything worth achieving.