Gauhati University Question Papers
MANAGEMENT ACCOUNTING (May-June'2014)
(MAJOR)
Full Marks: 80
Time: 3 hours
The figures in the
margin indicate full marks for the questions
1)
Marginal Costing regards only variable cost; but
fixed cost is treated as period cost.
2)
‘Standard Cost is a predetermined calculation of
how much costs should be under specified conditions.’
3)
Budgetary control cannot be applied in parts or
segments and it is a composite and comprehensive item.
4)
_____ is a cost measured by the change in cost
due to change in output by aggregate of all units taken together. (Choose the
most appropriate option from: marginal cost, fixed cost, joint cost)
5)
Management accounting does not embrace
presentation of accounting information that assist management in its operating
activity and undertaking managerial decisions.
(b) Fill in the blank with appropriate word/words: 1x5=5
1)
Cost volume profit (CPV) technique is based on
the assumption that fixed cost, variable cost and selling price per unit are
_____ for the time period analysed. (Choose from: constant; variable;
semi-variable)
2)
All the budgets like production, sales material,
labour expenses are then integrated to form a single budget is known as _____.
3)
Standard cost is a _____ cost which is
calculated from management’s standards of efficient operation and the relevant
necessary expenditure.
4)
When actual cost is greater than standard cost,
then variance is _____.
5)
Electronic data processing and real time
information sharing can be facilitated by _____ accounting system.
(c) Write brief answers to the following in about 50 words
each: 2x5=10
1)
State the nature of management accounting.
2)
State the meaning of marginal cost and its use.
3)
Discuss the reasons for preparation of flexible
budget.
4)
How does variance arising in standard costing?
5)
What is the meaning of budget?
2.
Write short notes on any four of the following: 5x4=20
a)
Break even analysis.
b)
Distinction between standard costing and
budgetary control.
c)
Assumptions of marginal costing.
d)
Use of accounting information for management
purpose.
e)
Use of budgetary control as a control device.
f)
Variance analysis in standard costing.
3.
From the following information prepare an Income Statement under marginal
costing: 10
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Products
|
|
|
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X
|
Y
|
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Direct materials
Direct wages
Factory overhead:
Fixed
Variable
Selling overhead:
Fixed
Variable
Sales
Opening Stock of
finished goods valued at variable cost
|
7,500
9,000
3,000
3,900
1,500
2,100
32,500
500
|
33,000
10,500
3,000
13,500
1,500
9,000
77,500
500
|
Fixed
factory overhead and fixed selling overhead were appointed to products x and y
on equitable bases.
Or
Describe the managerial application of managerial costing
techniques in various decision-making areas. 10
4.
Explain the different tools and techniques of management accounting in areas of
decision-making. 10
Or
Elaborate the application of computer and information
technology (CIT) in dissemination of managerial information in management
accounting. 10
5. A
department of Bank Green Resort Company attains sales of Rs. 6,00,000 at 80% of
its normal capacity. It expenses are given below:
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|
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Office Salaries
General Expenses
Depreciation
Rent and rates
Selling Cost:
Travelling Expenses
Sales Office
Expenses
Distribution Cost:
Wages
Rent
|
Rs. 90,000
2% of sales
Rs. 7,500
Rs. 8,750
10% of sales
2% of sales
Rs. 15,000
5% of sales
|
All
fixed expenses are assumed to remain unchanged even at 100% capacity.
Draw
up Flexible Administration, Selling and Distribution cost budget, operating at
100% of normal capacity.
Or
State the initial steps to be taken for installation of a
budgetary control system. In this context highlight the contents of a budget
manual.
6.
From the following particulars of Gorchuk Green Co. compute: (a) material cost
variance, (b) material price variance, (c) material usage variance, and state
managerial use of such variances:
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|
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Quantity of
materials purchased units
Value of materials
purchased
Standard quality of
materials required –
Per ton to output
Standard rate of
material
Opening Stock of
materials
Closing Stock of
materials
Output during the
period
|
3,000 units
Rs. 9,000
25 units
Rs. 2.50 per unit
10 units
510 units
75 units
|
Or
State the advantages of standard costing. Discuss the steps
of setting standard costs. 10
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