Assam University B.Com 5th Sem Question Paper CBCS Pattern
2020/TDC
(CBCS)/ODD/SEM/COMDSE-501T (A) /349
TDC (CBCS) Odd Semester
Exam, 2020
Held in March, 2021
COMMERCE (5th
Semester)
(Management Accounting)
Full Marks: 70
Pass Marks: 28
Time: 3 hours
The figures in the margin indicate full marks for the questions.
SECTION – A
Fill in the blanks/Choose the correct option/Answer any twenty of the following: 1x20=20
1. Management Accounting assists the
management in _______.
2. Management Accounting and Cost Accounting
are synonymous.
(a) True.
(b) False.
3. The approach of Management Accounting is
(a) Historical.
(b) Futuristic.
4. Management Accounting deals with what type
of information?
(a) Qualitative.
(b) Quantitative.
(c)
Both (a) and (b).
5. Management Accounting does not need
Financial Accounting and Cost Accounting as its base for installation.
(a) True.
(b) False.
6. The use of Management Accounting in
business is
(a) Optional.
(b) Compulsory.
7. Responsibility accounting is a controlling
tool for _______ level management.
(a) Top.
(b) Middle.
(c)
Lower.
8. What do you mean by Cost Accounting?
9. Budgetary control is a system of
controlling.
(a) Costs.
(b) Profit.
10. Sales budget and production budget are
types of _______ budget.
11. A budget is prepared for an indefinite
period.
(a) True.
(b) False.
12. Budgets deal with _______ type of information.
(a) Qualitative.
(b) Quantitative.
13. What is meant by budget?
14. What do you mean by semi-variable
overheads?
15. Define cash budget.
16. Differentiate between fixed budget and
flexible budget.
17. Labour rate variance = _______.
18. The technique of standard costing is
applicable in case of _______ concern.
(a) Small.
(b) Big.
19. A favourable variance will arise when
capital revenues are _______ than expected.
20. Define standard cost.
21. What are the divisions of material
variances?
22. What do you mean by labour idle time
variance?
23. What do you mean by volume variance?
24. Explain the meaning of standard hour.
25. What is P/V ratio?
26. In marginal costing, managerial decisions
are guided by contribution margin that by profit.
(a) True.
(b) False.
27. Technique of marginal costing is based on
classification of costs into _______ costs.
28. Period cost means
(a) Fixed cost.
(b) Variable cost.
(c)
Prime cost.
29. Define the term ‘margin of safety’.
30. What do you mean by break-even point of
sales?
31. If fixed cost is Rs. 10,000 and profit
volume ratio is 50%, then the break-even point is _______.
32. Find the profit volume ratio:
|
Period |
Sales (Rs.) |
Profit (Rs.) |
|
I |
1,20,000 |
9,000 |
|
II |
1,40,000 |
13,000 |
34. Sales pricing decisions do not consider
_______ of competitors’ product.
(a) Costs.
(b) Sale price.
35. Contribution and incremental revenue are
same.
(a) True.
(b) False.
36. Define the terms relevant costs and
irrelevant costs.
37. What do you mean by replacement cost?
38. What do you mean by opportunity cost?
39. What do you mean by product-mix decision?
40. Define the term national or imputed cost.
Also Read: Assam University B.Com 5th Sem Question Papers
SECTION – B
Answer any five of the following questions: 2x5=10
41. Differentiate between Cost control and
Cost reduction.
42. Discuss few limitations of Management
Accounting.
43. What do you mean by zero-base budgeting?
44. Write any two advantages of budgetary
control.
45. What do you mean by management by
exception?
46. Given that the standard costs for
materials consumption are 40 kg at Rs. 10 per kg. Compute the variances when
actual are 48 kg at Rs. 12 per kg.
47. State a few objectives of cost-volume
profit analysis.
48. A company has earned a contribution of
Rs. 2,00,000 and net profit of Rs. 1,50,000 on sales of Rs. 8,00,000. What is
the margin of safety?
49. Discuss any two methods of pricing.
50. What is meant by make or buy decisions?
Mention any one factor influencing make or buy decision.
SECTION – C
Answer any five questions
51. Differentiate between Cost Accounting and
Management Accounting. 8
52. Discuss in brief any two techniques used
in Management Accounting. 4+4=8
53. What do you mean by Budgetary Control?
State the main objectives of budgetary control. 2+6=8
54. A company working at 50% capacity
manufactures 10,000 units of a product. At 50% capacity, the product cost
is Rs. 180 and sale price is Rs. 200.
The break-up of the cost is as below: 8
|
|
Cost per unit (Rs.) |
|
Material
|
100 |
|
Wages |
30 |
|
Factory
overheads |
30 (40% fixed) |
|
Administrative
overheads |
20 (50% fixed) |
At 60% working, material
cost goes up by 2% and sales price falls by 2%. At 80% working, material cost
increases by 5% and the sale price decreases by 5%. Prepare a flexible budget
at 60% and 80% capacity showing probability.
55. Discuss the advantages and disadvantages
of standard costing. 4+4=8
56. Following information is available from
the cost records of XYZ. For the month of March, 2020:
|
|
Rs. |
|
Materials
purchased 20,000 units Materials
consumed 19,000 units Actual
wages paid for 4,950 hr Units
produced 1,800 units |
88,000 24,750 |
Standard rates and pieces
are as follows:
Direct
material rate is Rs. 4 per unit.
Standard
input is 10 nos. for one unit.
Direct labour
rate is Rs. 4 per hour.
Standard
requirement is 2.5 hour per unit.
You are required to
compute all materials and labour variances for the month of March, 2020. 8
57. Discuss some important advantages and
limitations of marginal costing. 5+3=8
58. Prepare an income statement using
marginal costing method of XYZ Ltd.: 8
|
Production
Sales
Selling
price/unit Direct
materials Direct
labour Factory
overheads: Variable Fixed Selling
and distribution overheads: Variable Fixed |
1,00,000 units 80,000 units Rs. 15 Rs. 2,50,000 Rs. 3,00,000 Rs. 1,00,000 Rs. 2,50,000 Rs. 1,00,000 Rs. 2,00,000 |
59. Discuss some important areas where
marginal costing technique can be used for decision making. 8
60. Furniture Inn manufactures mini stools.
Recently a supplier has offered the stools of the same quality @ Rs. 140 each with
an assurance of continued supply. The following is the budget for 4,000 units.
Prepared for the year ending 31st March, 2020:
|
|
Rs. |
|
Raw
material cost Direct
wages Production
overheads: Variable Fixed Distribution
costs: Variable Fixed Administrative
costs: Variable Fixed |
2,00,000 1,80,000 1,20,000 1,40,000 60,000 75,000 50,000 1,25,000 |
You are required to find
the following: 5+3=8
(a) Should Furniture Inn accept the offer from the supplier?
(b) What would be the decision if the supplier offered the tables at Rs.
120 each?
***
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