Management Accounting Question Papers Nov' 2018 [Dibrugarh University B.Com 5th Sem Question Papers]

[Management Accounting Question Papers, Dibrugarh University, B.Com 5th Sem, General and Speciality, 2018]

Management Accounting Question Papers
2018 (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) write true or false:               1x4=4
1)         Management accounting provides decision to the management.
2)         In marginal costing, the problem of over and under absorption of overhead is avoided.
3)         Machinery sold for cash is an application of fund.
4)         Cash flow statement is useful for short-term financial analysis.
(b) Fill in the blanks:                                                                         1x4=4
1)         Decrease in creditor is _____ of cash.
2)         Budgetary control is a system of controlling _____.
3)         Management Accounting is based on _____ information.
4)         Purchase of plant will mean _____ in working capital.
2. Write short notes on (any four):                                                  4x4=16
a)         Limitation of Management Accounting.
b)         Break-even point.
c)          Funds flow statement.
d)         Profit-volume ratio.
e)         Contribution.
3. (a) What do you mean by Management Accounting? How does management accounting differ from cost accounting? 4+10=14
Or
(b) Explain the various characteristics of Management Accounting. Discuss the various tools and techniques of management accounting.      6+8=14
4. (a) From the following Balance Sheets of X Ltd. Co. for the years 2014-15 and 2015-16, make out –
1)         Schedule of changes in the working capital;
2)         Statement of sources and application of fund:          7+7=14
Capital and Liabilities
31.03.2015
Rs.
31.03.2016
Rs.
Equity Share Capital
8% Redeemable Preference Share
Capital Reserve
General Reserve
Profit & Loss A/c
Proposed Dividends
Sundry Creditors
Bills Payable
Expenses Due
Provision for Taxation
3,00,000
1,50,000
-
40,000
30,000
42,000
25,000
20,000
30,000
40,000
4,00,000
1,00,000
20,000
50,000
48,000
50,000
47,000
16,000
36,000
50,000

6,77,000
8,17,000
Assets
31.03.2015
Rs.
31.03.2016
Rs.
Goodwill
Plant
Land
Investment
Sundry Debtors
Stock-in-Trade
Bills Receivable
Cash in Hand
Cash at Bank
Preliminary Expenses
1,00,000
80,000
2,00,000
20,000
1,40,000
77,000
20,000
15,000
10,000
15,000
80,000
2,00,000
1,70,000
30,000
1,70,000
1,09,000
30,000
10,000
8,000
10,000

6,77,000
8,17,000
Additional Information:
1)         A machine has been sold for Rs. 10,000. The written down value of the machine was Rs. 12,000. Depreciation of Rs. 10,000 is charged on plant in 2015-16.
2)         A piece of land had been sold out in 2015-16 and profit on sale has been credited to capital reserve.
3)         The investment is trade investment; Rs. 3,000 is received by way of dividends including Rs. 1,000 from pre-acquisition which have been credited to Investment A/c.
4)         An interim dividend of Rs. 20,000 has been paid in 2015-16.
Or
(b) What is Cash Flow Statement? How is it prepared? Distinguish between a Cash Flow Statement and a Cash book. 3+7+4=14
5. (a) The following data are available in a manufacturing company for the half-year period ending on 30th September, 2017:

Rs. (in lakhs)
Fixed Expenses:
Wages and salaries                                                                    8.4
Rent, rates and taxes                                                                5.6
Depreciation                                                                               7.0
Sundry administrative expenses                                             8.9

Semi variable expenses:
Maintenance and repairs                                                        2.5
Indirect labour                                                                           9.9
Sales department salaries                                                       2.9
Sundry administrative expenses                                            2.6

Variable expenses @ 50% of capacity
Materials                                                                                  24.0
Labour                                                                                      25.6
Other expenses                                                                        3.8





29.9





17.9




53.4

It is assumed that fixed expenses remain constant for all levels of production; semi variables expenses remain constant between 45% and 65% of capacity, increasing by 10% between 65% and 80% of capacity and 20% between 80% and 100% of capacity.
Sales at the various levels are

Rs. (in lakhs)
60% capacity
75% capacity
90% capacity
100% capacity
100
120
150
170
Prepare a flexible budget for the half-year and forecast at 60%, 75%, 90% of capacity.           14
Or
(b) Define the budgetary control. Explain the objectives and limitations of budgetary control.                          3+5+6=14
6. (a) The profit volume ratio of X Ltd. Co. is 40% and margin of safety is also 40%. Work out the following if the sales volume is Rs. 1.50 lakhs.       3+3+4+4=14
1)         Break-even point.
2)         Net Profit.
3)         Fixed cost.
4)         Sales required to earn a profit of Rs. 30,000.
Or
(b) Define marginal costing. What are the advantages and disadvantages of marginal costing?  3+6+5=14
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1. (a) Write True or False:                                            1x4=4
1)         Publication of Management Accounting Report is not compulsory.
2)         Contribution is the difference between sales and total cost of sales.
3)         Budgeting may be said to be an act of determining costing standards.
4)         Idle Time Variance = Idle Hours x Standard Rate.
(b) Fill in the blanks:                                          1x4=4
1)         Direct Labour Cost Variance = Standard Cost for actual production _____ Cost of Production.
2)         Goodwill is a _____ transaction.
3)         Zero-base budgeting was first used by _____.
4)         Accounting is an art of recording financial _____.
2. Write short notes on (any four):                                               4x4=16
a)         Margin of safety.
b)         Zero-base budgeting.
c)          Make or buy decision.
d)         Responsibility accounting.
e)         Material cost variance.
3. (a) Discuss the concept of Management Accounting. How can management accounting be useful to the management? What are its limitations?      4+4+4=12
Or
(b) Explain the role of Management Accountant in a business enterprise.           12
4. (a) From the following Balance Sheets of Y Ltd. as on 31st December, 2015 and 31st December, 2016, you are required to prepare –
1)         A schedule of changes in working capital;
2)         A fund flow statement:                                               5+6=11
Liabilities
2015
Rs.
2016
Rs.
Assets
2015
Rs.
2016
Rs.
Share Capital
General Reserve
Profit & Loss A/c
Sundry Creditors
Bills Payable
Provision Taxation
Provision for
 Doubtful Debts
1,00,000
14,000
16,000
8,000
1,200
16,000

400
1,00,000
18,000
13,000
5,400
800
18,000

600
Goodwill
Building
Plant
Investment
Stock
Bills Receivable
Debtors
Cash at Bank
12,000
40,000
37,000
10,000
30,000
2,000
18,000
6,600
12,000
36,000
36,000
11,000
23,400
3,200
19,000
15,200

1,55,600
1,55,800

1,55,600
1,55,800
The following additional information has also given:
1)         Depreciation charged on plant was Rs. 4,000 and on Building Rs. 4,000.
2)         Provision for taxation of Rs. 19,000 was made during the year 2016.
3)         Interim dividend of Rs. 8,000 was paid during the year 2016.
Or
(b) Explain the procedure of preparing a cash flow statement.                         11
5. (a) A company wishes to prepare cash budgets from January. Prepare a cash budget for the first six months from the following estimated revenue and expenditure:    11
Months
Total Sales
Rs.
Materials
Rs.
Wages
Rs.
Production
Overhead
January
February
March
April
May
June
20,000
22,000
24,000
26,000
28,000
30,000
20,000
14,000
14,000
12,000
12,000
12,000
4,000
4,400
4,600
4,600
4,800
4,800
3,200
3,300
3,300
3,400
3,500
3,600
Cash balance on 1st January was Rs. 20,000. A new machine is to be installed at Rs. 30,000 on credit, to be repaid by two equal installments in March and April.
Sales commission @ 5% on total sales is to be paid within the month following actual sales. Rs. 10,000 being the amount of 2nd call may be received in March. Share premium amounting to Rs. 2,000 is also obtainable with 2nd call:
Period of credit allowed by suppliers – 2 months
Period of credit allowed to customers – 1 month
Delay in payment of overhead – 1 month
Delay in payment wages – 1/2 month
Assume cash sales to be 50% of total sales.
Or
(b) What do you mean by budgetary control? State the objectives and limitations of budgetary control.     3+4+4=11
6. (a) The following details relating to the product X during the month of March 2017 are available. You are required to compute the material and labour cost variance and also reconcile the standard and the actual cost with the help of such variances.    2+3+3+3=11
Standard cost per unit:
Material – 50 kg @ Rs. 40 per kg
Labour – 400 hours @ Rs. 1 per hour
Actual cost for the month:
Material – 4900 kg @ Rs. 42 per kg
Labour – 39600 hours @ Rs. 1.10 per hour

Or
(b) What do you mean by standard costing? Discuss the usefulness of standard costing.  3+8=11
7. (a) From the following information, calculate –
1)         P/V ratio;
2)         Break-even point;
3)         Margin of safety.
If the selling price is reduced to Rs. 90, by how much is the margin of safety reduced?    2+3+3+3=11

Rs.
Total sales
Selling price (per unit)
Variable cost
Fixed cost
3,00,000
100
40
90,000

Or
(b) Define marginal costing. Discuss its contribution to the management in decision making.   5+6=11

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