Management Accounting Question Papers Nov' 2016 [Dibrugarh University B.Com 5th Sem Question Papers]

[Management Accounting Question Papers, Dibrugarh University, B.Com 5th Sem, General and Speciality, 2016]

Management Accounting Question Papers
2016 (November)
Commerce (General /Speciality)
Course Code: 503
Full Marks: 80
Pass Marks: 32
Time: 3 Hours

The figures in the margin indicate full marks for the questions

1. (a) Fill in the blanks:      1x5=5
a)      In marginal costing system, fixed cost is considered as ____ cost.
b)      Issue of equity shares in a cash flow from ____ activities.
c)       ____ budget is a summary of all functional budgets.
d)      Fixed cost per unit ____ when volume of production increases.
e)      Margin of safety can be improved by reducing the ____ cost.

(b) Write True or False:                                                 1x3=3
a)      Management Accounting is concerned with accounting information that is useful to the management.
b)      The difference between actual cost and standard cost is known as differential cost.
c)       Cash Flow Statement is based upon accrual basis of accounting.

2. Write short notes on any four of the following:       4x4=16
a)      Tools of Management Accounting.
b)      Funds from Operation.
c)       Differential Costing.
d)      Cost-volume-profit Relationship.
e)      Budgetary Control.
f)       Performance Budgeting.

3. (a) “Management Accounting has been evolved to meet the need of management.” Explain this statement.     14
Or
(b) “Management Accounting is nothing more than the use of financial information for management purposes.” Explain this statement and clearly distinguish between Financial Accounting and Management Accounting. 6+8=14

4. (a) The following are the summaries of the Balance Sheets of EC Ltd. as on 31st December, 2014, and 31st December, 2015:
Liabilities
31.12.2014
31.12.2015
Share Capital
Reserve Fund
Profit & Loss A/c
Bank Loan
Creditors
Provision for Taxation
2,00,000
50,000
30,500
70,000
1,55,000
30,000
2,50,000
60,000
30,600
-
1,40,200
35,000

5,35,500
5,15,800
Assets
31.12.2014
Rs.
31.12.2015
Rs.
Land & Buildings
Plant
Stock
Debtors
Cash
Bank
2,00,000
1,50,000
1,00,000
85,000
500
-
1,90,000
1,74,000
74,000
69,200
600
8,000

5,35,500
5,15,800
Additional Information:
a)      Depreciation on plant was Rs. 14,000 in 2015.
b)      Dividend of Rs. 20,000 was paid in 2015.
c)       Income tax provision for the year was Rs. 25,000.
d)      A piece of land was sold in 2015 at cost.
Prepare a statement showing sources and application of fund and a schedule of changes in working capital for 2015. 14
Or
(b) (i) What do you mean by Cash Flow Statement? Explain the objects of Cash Flow Statement.    7
(ii) Distinguish between Cash Flow Statement and Funds Flow Statement.   7
5. (a) The following are the details of profit and loss data relating to a manufacturing business:
Particulars
Rs.
Sales
Cost of Goods Sold:
Variable                                                                      40,000
Fixed                                                                           10,000
1,00,000


50,000
Gross Profit
Selling and Administrative Cost:
Variable                                                                     10,000
Fixed                                                                            5,000
50,000


15,000
Net Profit
35,000
a)      From the above data, calculate:
1)      Profit-volume ratio;
2)      Break-even point;
3)      Profit for the sales volume of Rs. 1,60,000 and Rs. 70,000.
b)      Would it be profitable to reduce the selling price by 10% if it leads to an increase in sales by 30%? (2+3+4)+5=14
Or
(b) Define marginal costing and discuss its contributions to the management in decision-making.              5+9=14

6. (a) From the following estimates of KJ Ltd. prepare a Sales Overhead Budget:
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Salaries of the sales department
Expenses of the sales department
Counter salesmen’s salaries and dearness allowance
Counter salesmen are allowed commission @ 2% on their sales.
Travelling salesmen are allowed commission and expenses @ 10% and 5% on their sales respectively.
5,000
10,000
3,000
12,000
The estimated sales during the period were as under:
Area
Counter sales  Rs.
Sales by travelling salesmen Rs.
I
II
III
1,60,000
2,40,000
2,80,000
20,000
30,000
40,000
Or
(b) What is sales budget? How it is prepared? Distinguish between sales budget and production budget.
(Old Course)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1. (a) Fill in the blanks:                                                   1x5=5
a)      Standard cost is a ____ cost.
b)      P/V ratio exhibits the percentage of contribution included in ____.
c)       Repayment of borrowing causes cash ____.
d)      ____ budget is a summary of all functional budgets.
e)      Fixed cost per unit ____ when volume of production increases.
    (b) Choose the correct answer:                             1x3=3
a)      Variable cost per unit remains same/increases/decreases due to increase in production.
b)      The practice of charging all costs to product is marginal costing/absorption costing/standard costing.
c)       Standard costing is a method/process/technique of Cost Accounting.

2. Write short notes on any four of the following:       4x4=16
a)      Break-even Analysis.
b)      Zero-base Budgeting.
c)       Absorption Costing.
d)      Cash Budget.
e)      Advantages of Standard Costing.
f)       Overheads Variances.

3. (a) Discuss, in detail, the functions of Management Accounting.          11
Or
(b) Explain the role of a management accountant in a business enterprise.      11

4. (a) The following are the Summarized Balance Sheets of Dibru Trading Ltd. as on 31st March, 2015 and 31st March, 2016:
Liabilities
31.03.2015
Rs.
31.03.2016
Rs.
Equity Share Capital
14% Debentures
Securities Premium
General Reserve
Profit & Loss A/c
Sundry Creditors
Proposed Dividend
Provision for Depreciation:
Plant & Machinery
Furniture
2,00,000
50,000
-
30,000
48,000
1,35,000
20,000

1,40,000
6,000
2,40,000
-
10,000
50,000
68,000
1,55,000
24,000

1,50,000
4,000

6,29,000
7,01,000
Assets
31.03.2015
Rs.
31.03.2016
Rs.
Land & Buildings
Plant & Machinery (at cost)
Furniture (at cost)
Inventories
Sundry Debtors
Cash 
1,05,000
2,90,000
9,000
1,30,000
80,000
15,000
1,50,000
3,20,000
10,000
1,05,000
90,000
26,000

6,29,000
7,01,000
Additional Information:
a)      Furniture which cost Rs. 5,000, written down value being Rs. 1,000, was sold in 2015 – 16 for Rs. 2,000.
b)      Plant & Machinery, which cost Rs. 20,000 and in respect of which Rs. 13,000 had been written off as depreciation, was sold in 2015 – 16 for Rs. 3,000.
c)       The dividend declared in 2014 – 15 was paid during 2015 – 16.
From the above particulars, you are required to prepare :
a)      A Statement of changes in working capital during 2015 – 16.
b)      Funds Flow Statement for 2015 – 16.
Or

(b) State whether each of the following transactions would increase; decrease or have no effect on working capital: 2x6=12
a)      Purchase of goods on credit.
b)      Payment of previous year’s dividend.
c)       Sale of furniture on credit.
d)      Issue of preference share.
e)      Sale of old assets.
f)       Payment of bills payable.
5. (a) From the data given below, calculate:  2+3+3+3=11
a)      Contribution;
b)      Profit-volume ratio;
c)       Break-even point;
d)      Sales to earn a profit of Rs. 3,00,000;
Fixed Cost – Rs. 1,80,000
Variable cost per unit:
Direct Material – Rs. 6
Direct Labour – Rs. 3
Direct Overheads – 100% of direct labour
Selling price per unit – Rs. 15
Or
(b) (i) State any three similarities between marginal costing and differential costing.                    3
(ii) Describe the major areas of application of marginal costing system. What is the necessity of analysis of marginal cost?                8

6. (a) What do you understand by the terms ‘budget’ and ‘budgetary control’? Discuss the benefits derived from an efficient system of budgetary control.                                   (2+3)+6=11
Or
(b) A company is currently working at 50% capacity and produces 10000 units. Estimate the profit of the company when it works at 60% and 70% capacity.
At 60% capacity, the raw material cost increases by 2% and selling price falls by 3%.
At 70% capacity, the raw material cost increases by 4% and selling price falls by 5%.
At 50% capacity working, the product cost is Rs. 180 per unit and the selling price is Rs. 200 per unit.
The unit cost of Rs. 180 is made up as follows:

Rs.
Raw Material
Wages
Factory overhead (40% fixed)
Administrative overhead (50% fixed)
100
30
20
30

180
7. (a) From the particulars given below, calculate:
a)      Material price variance;
b)      Material usage variance;
c)       Material mix variance;

Standard
Actual
Materials
Quantity
(kg)
Unit Price
Rs.
Total
Rs.
Quantity
(kg)
Unit Price
Rs.
Total
Rs.
A
B
C
40
20
20
10
20
40
400
400
800
20
10
30
35
20
30
700
200
900
Or
(b) What do you understand by the terms ‘variance’ and ‘variance analyses’? Discuss the importance of variance analysis.       (2+3)+6=11