Gauhati University Question Papers
MANAGEMENT ACCOUNTING (May-June'2013)
(MAJOR)
Full Marks: 80
Time: 3 hours
The figures in the
margin indicate full marks for the questions
1)
Management Accounting is an integral part of
management.
2)
In modern business management accounting is
compulsory.
3)
Marginal cost is the aggregate the prime cost
plus variable cost.
4)
Functional budgets are prepared by the Budget
Committee of the business.
5)
Idle time variance is always unfavourable.
(b) Fill in the blank with appropriate word/words: 1x5=5
1)
In marginal costing only _____ costs are charged
to production.
2)
If contribution is greater than fixed costs, the
excess is known as _____.
3)
Flexible budget changes with the change in
_____.
4)
The difference between actual cost and standard
cost is known as _____.
5)
Standard cost is a _____ cost.
(c) Write brief answers to the following in about 50 words
each: 2x5=10
1)
Write the meaning of Budgetary Control.
2)
Write two advantages of Management Accounting.
3)
Write two characteristics of Marginal Costing.
4)
Meaning of Variance analysis.
5)
Write two points of distinctions between Fixed
budget and Flexible budget.
2.
Write short notes on any four of the following: 5x4=20
1)
Five points of differences between Financial
Accounting and Management Accounting.
2)
Cost-volume-profit analysis.
3)
Five objectives of Budgetary control.
4)
Production budget.
5)
Advantages of standard costing.
6)
Labour efficiency variance.
3.
Discuss the functions of Management Accounting. 10
Or
Describe the tools and techniques of Management Accounting
needed for managerial decisions. 10
4.
Use Me Cosmetics Ltd. furnished the following data:
|
|
Sales (in Rs.)
|
Profits (in Rs.)
|
|
Year 2011
Year 2012
|
60,000
70,000
|
4,000
6,500
|
You
are required to calculate:
1)
P/V Ratio.
2)
Breakeven point.
3)
Profit when sales are Rs. 90,000.
4)
Sales required to earn a profit of 6,000.
5)
Margin of safety in the year 2012. 10
Or
Explain the following term in relation to Marginal costing: 10
1)
Contribution.
2)
Margin of Safety.
3)
P/V Ratio.
4)
Break even chart.
5. A
company is expecting to have Rs. 25,000 in cash in hand on 1st April
2013 and it requires you to prepare cash budget for the three months, April
2013 to June 2013. The company furnished the following information to you:
|
|
Sales
(Rs.)
|
Purchases
(Rs.)
|
Wages
(Rs.)
|
Expenses
(Rs.)
|
|
February
March
April
May
June
|
70,000
80,000
92,000
1,00,000
1,20,000
|
40,000
50,000
52,000
60,000
55,000
|
8,000
8,000
9,000
10,000
12,000
|
6,000
7,000
7,000
8,000
9,000
|
Other
information:
1)
Period of credit allowed by supplier is two
months;
2)
25% of total sales is for cash and the period of
credit allowed to customers for credit sales is one month;
3)
Delay in payment of wages and expenses is one
month;
4)
Income tax Rs. 25,000 is to be paid in June,
2013 10
Or
State the advantages and limitations of budgetary control in
a business. 10
6.
Assam Ltd. uses standard costing and furnished you the following information: 10
|
|
|
|
Standard materials
for 700 units of finished product
Price of materials
Actual output
Opening Stock
Purchased 3,00,000
kg for
Closing stock
|
1,000 kg
Rs. 1 per kg
2,10,000 units
NIL
Rs. 2,70,000
20,000 kg
|
Calculate:
a)
Direct Material Cost variance.
b)
Direct Material Price variance.
c)
Direct Material usage variance.
d)
Significance of those variances.
Or
Explain the factors considered in establishment of Standard
Costs. 10
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