Gauhati
University B.Com 5th Sem
Management
Accounting Question Paper 2018
Paper:
205 (A)
(Accountancy
Major)
Full
Marks – 80
Time
– Three Hours
The figures in the margin indicate full marks for the questions
1. (a) State whether the following statements are correct or incorrect: 1x5=5
a) Financial
Accounting is the base of Management Accounting.
b) Contribution
is the difference between the sales and the total cost.
c) Zero-base
budgeting was first used in America.
d) In
order to control costs, a concern may use either budgetary control or standard
costing but not both of these techniques.
e) Flexible
budgets change with the level of activity.
(b) Fill in the blanks with appropriate
word(s): 1x5=5
a) Management
Accounting is concerned with _______ reporting.
b) In
marginal costing, stock of finished goods is valued at _______.
c) P.V.
Ratio can be _______ by increasing selling price.
d) Standard
cost is a _______ cost.
e) Idle
time variance is idle time x _______.
2. Answer the following questions: 2x5=10
a) State
two limitations of Financial Accounting.
b) Define
‘Marginal cost’.
c) Mention
two assumptions of break-even analysis.
d) What is
‘budget-manual’?
e) Give
the formula of Labour Efficiency Variance.
3. Answer the following questions: 5x4=20
(a)
Explain the relationship between Financial Accounting and Management
Accounting.
(b) What
is Profit-Volume Ratio? Describe its importance.
Or
A firm
provides you the following information:
|
Variable
cost per unit Fixed
expenses Selling
price per unit |
Rs. 15 Rs.
54,000 Rs. 20 |
What
should be the new selling price per unit, if the break-even point is to be
brought down to 6,000 units?
(c)
Discuss the objectives of budgetary control.
(d) Write
a note on ‘Performance budgeting’?
Or
Explain
‘Controllable variance’ and ‘Un-controllable variance’.
4.
“Management Accounting is concerned with information which is useful to
management.” Explain the statement highlighting the nature of information referred
to. 10
Or
Discuss
Management Accounting as a tool of planning and exercising control. 10
5. The
expenses budgeted for production of 10,000 units in a factory are furnished
below: 10
|
Particulars |
Rs. per
unit |
|
Material
Labour Variable
overheads Fixed
overheads (Rs. 1,00,000) Variable
expenses (direct) Selling
expenses (10% fixed) Distribution
expenses (20% fixed) Management
expenses (Rs. 50,000) |
70 25 20 10 5 13 7 5 |
|
Total |
155 |
Assuming
that management expenses are rigid for all levels of production, prepare a
flexible budget for the production of 8,000 units and 6,000 units.
Or
Describe
the essential steps for adoption of a budgetary control system. 10
6. Explain
the importance of the following in relation to marginal costing. 5+5=10
a) Contribution.
b) Margin
of safety.
Or
A company
has annual fixed cost of Rs. 1, 40,000. In 2017 sales amounted to Rs. 6, 00,000
as compared with Rs. 4, 50,000 in 2016. The profit in 2017 was Rs. 42,000
higher than in 2016.
a) Find
the break-even sales of the company.
b) If
there is reduction is selling price in 2018 by 10% and the company desires to
earn the same amount of profit as in 2017, what would be the required sales
volume? 4+6=10
7. What is
Variance Analysis? Explain its significance for managerial decision making
purpose. 4+6=10
Or
A
furniture company uses sun mica tops for tables. It provides you the following
data:
|
Standard
quantity of sun mica per table 4 sq. ft. Standard
price per sq. ft. of sun mica Rs. 5 Actual
production of table = 1,000 numbers Sun mica
actually used = 4,300 sq. ft. |
Actual
purchase price of sun mica per sq. ft. Rs. 5.50.
Calculate:
a) Material
cost variance.
b) Material
price variance.
c) Material usage variance. 10
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