Management Accounting Question Papers Nov' 2017 [Dibrugarh University B.Com 5th Sem Question Papers]

[Management Accounting Question Papers, Dibrugarh University, B.Com 5th Sem, General and Speciality, 2017]

Management Accounting Question Papers
2017 (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:                                1x4=4

(i) Management Accounting supplies information to the ____ so that later may be able to discharge all its functions properly.
(ii) Cash receipt from issue of shares is a ____ activity.
(iii) Contribution is the difference between sales and ____.
(iv) Flexible budget is a ____ budget.
(b) Write True or False:                         1x4=4
(i) Management Accounting and Cost Accounting are synonymous.
(ii) Building sold on credit is a source of fund.
(iii) Marginal Cost = Total Cost – Variable Cost.
(iv) Budget is related to a definite future period.
2.       Write short notes on (any four):                       4x4=16
(a)    Scope of Management Accounting.
(b)   Profit-volume Ratio.
(c)    Operating Activities.
(d)   Production Budget.
(e)   Profit-volume Graph.
3.       (a) Define Management Accounting. Discuss its functions and limitations.     3+6+5=14
Or
(b) “Management Accounting is concerned with those accounting data and information, which are useful to management.” Elucidate the statement.                              14
4.       (a) Distinguish between the following:                           7+7=14
(i) Funds Flow Statement and Income Statement.
(ii) Funds Flow Statement and Balance Sheet.
Or
(b) The following are the Ledger Balances taken from the books of a limited company as on 31st March:
Credit Balances
2016 Rs.
2017 Rs.
Debit Balances
2016 Rs.
2017 Rs.
Share Capital
Sundry Creditors
Bills Payable
Bank Overdraft
Provision for Tax
Reserves
Surplus A/c
2,00,000
39,500
33,780
59,510
40,000
50,000
39,690
2,60,000
41,135
11,525
-
50,000
50,000
41,220
Cash at Bank
Debtors
Advances
Stock
Land & Building
Machinery & Plant
Goodwill
2,500
85,175
2,315
1,11,040
1,48,500
1,12,950
-
2,700
72,625
735
97,370
1,44,250
1,16,200
20,000

4,62,480
4,53,880

4,62,480
4,53,880
Additional Information:
a)      During the year ended 31st March, 2017, an additional dividend of Rs. 26,000 was paid.
b)      The assets of an another company was purchased for Rs. 60,000 payable in fully paid shares of the company. The assets consisted of stock Rs. 21,640, machinery Rs. 18,360 and goodwill Rs. 20,000. In addition, sundry purchase of plant were made totalling Rs. 5,650.
c)       Income tax paid during 2016-17 was Rs. 25,000.
d)      The net profit for the year before tax was Rs. 62,530.
Prepare a Cash Flow Statement by indirect method.                                       14
5.       (a) From the following data, calculate:
(i)            Profit-volume ratio:
(ii)          Fixed cost;
(iii)         Sales at  break-even point;
(iv)        Sales required to earn a profit of Rs. 20,000:                   3+3+4+4=14

Sales (Rs. )
Profit (Rs.)
Period – I
Period – II
1,00,000
1,20,000
15,000
23,000
Or
(b) What do you mean by Marginal Costing? Discuss its usefulness and limitations.    2+7+5=14
6.       (a) Define the terms ‘budget’ and budgetary control’. Explain in detail the classification of budgets according to (i) time, (ii) function and (iii) flexibility.                                    2 ½ +2 ½+9=14
(b) A manufacturing company manufactures two products X and Y. An estimate of the number of units expected to be sold in the first seven months of 2016 is given below:

Products – X
(Units)
Product – Y
(Units)
January
February
March
April
May
June
July
500
600
800
1000
1200
1200
1000
1400
1400
1200
1000
800
800
900
It is anticipated that:
1.       There will be no work-in-progress at the end of each month;
2.       Finished units equal to half of the anticipated  sales  for the next month will be in stock at the  end of each month (including December 2015)
The budgeted production  and  production cost for the year ending 31st December, 2016 are as follows:

Products – X
Product – Y
Production
Direct Material
Direct wages
Other Manufacturing Expenses
(Apportion able to each type of product)
11000 units
Rs. 12 per unit
Rs. 5 per unit
Rs. 33,000
12000 units
Rs. 19 per unit
Rs. 7 per unit
Rs. 48,000
You are required to prepare:
a)      A production budget showing number of units to be manufactured each month;  
b)      A summarized production cost budget for six months period from January to June 2016        8+6=14
(Old Course)
Full Marks: 80
Pass Marks: 32
1.       (a) Write True or False:                          1x4=4
(i)      The origin of Management Accounting is due to limitations of Financial Accounting and Cost Accounting. 
(ii)    Cash Flow Statement is a substitute of Cash Account.
(iii)   Margin of Safety = Fixed Cost/PV Ratio.
(iv)  Material Cost Variance = Material Price Variance x Material Usage Variance.
(b) Fill in the blanks:                        1x4=4
(i)    Management Accountant is ____ in  position to Cost Accountant.
(ii)   In a Funds Flow Statement, all ____ are treated as source of funds.
(i)      Break-even analysis is also known as ____ analysis.
(ii)    Budgetary Control is a system of controlling ____.
2.       Write short notes on (any four)
(a)     Nature of Management Accounting.
(b)   Limitations of Funds Flow Statement.
(c)    Break-even Chart.
(d)   Sales Budget.
(e)   Labour cost variance.
3. (a) Define Management Accounting. Distinguish between Management Accounting and Financial Accounting. 3+9=12
Or
(b) Discuss in detail the functions of Management Accounting.                  12
4.       (a) The following are the Balance Sheets of Blue Sky Co. Ltd. For the years 2014-15 and 2015-16:
Liabilities
2014-15
Rs.
2015-16
Rs.
Assets
2014-15
Rs. 
2015-16
Rs.
Share Capital:
Shares of Rs. 10 each.
P/L A/c
10% Debentures
Creditors

3,50,000
50,400
60,000
51,600

3,70,000
52,800
30,000
59,200
Land
Goodwill
Stock
Debtors
Cash
1,00,000
50,000
2,46,000
71,000
45,000
1,50,000
25,000
2,13,500
84,500
39,000
Additional information:
(i)      Dividend paid during the year – Rs. 17,500
(ii)    Land was   revalued  during the year at Rs. 1,50,000 and the profit on revaluation transferred to Profit and Loss A/c.
From the above information, prepare a Cash Flow Statement for the year ended 31st March, 2016.  11
Or
(b) Explain the meaning, importance and objectives of Funds Flow Statement.    3+4+4=11
5. (a)  “The technique of marginal costing is a valuable aid to management.” Discuss.    11
Or
(b) You are provided the following information:
Units of output
Fixed Cost
Variable cost per unit
Selling price per unit
5,000
Rs. 7,50,000
Rs. 2
Rs. 5
You are required to determine –
(i)       Break-even  point;
(ii)    Profit-volume ratio;
(iii)   Sales required to earn a profit of Rs. 6,00,000                     3+3+5=11
6.       (a)  Explain the meaning and objectives of sales budget. Distinguish between sales budget and production budget.    2+3+6=11
Or
(b) AB Ltd. has prepared  the budget for the production of 100000 units of the commodity  manufactured by them for a costing period as under:

Per Unit (Rs.)
Raw Materials
Direct Labour
Direct Expenses
Works Overheads  (60%  fixed)
Administrative Overheads (80%  Fixed)
Selling Overheads  (50%  fixed)
2.52
0.75
0.10
2.50
0.40
0.20
The annual production during the period was only 60000 units. Calculate the revised budgeted cost per unit.                11          
7. (a) What is standard costing? Explain its advantages and disadvantages. 2+5+4=11
Or
(b) From the data given below, calculate the material price variance, material usage variance and material mix variance:
Consumption per 100 units of product
Raw Materials
Standard
Actual
A
B
40 units @ Rs. 50 per unit
60 units @ Rs. 40 per unit
50 units @ Rs. 50 per unit
60 units @ Rs. 45 per unit

Also Read: Management Accounting Question Papers Non CBCS Pattern

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