# Management Accounting Question Papers Nov' 2015 | Dibrugarh University B.Com 5th Sem Question Papers

### The figures in the margin indicate full marks for the questions

1. (a) Write True or False:             1x3=3
i.         Management accounting deals only with the information which is useful to the management.
ii.         P/V ratio can be improved by reducing the fixed cost.
iii.         Cash Flow Statement is based upon accrual basis of accounting.

(b) Fill in the blanks:                        1x5=5
i.            The difference between Actual Cost and Standard Cost is known as ____.
ii.            Only ____ information is recorded in accounting.
iii.            Margin of safety can be improved by reducing the ____ cost.
iv.            Any transaction that increases working capital is a ____ of fund.
v.            Repayment of borrowing causes cash ____.

2. Write short notes on any four of the following:             4x4=16
a)   Limitations of management accounting.
b)   Cost-volume-profit analysis.
d)   Cash Flow Statement.
e)   Responsibility accounting.
f)    Assumptions of break-even analysis.

3. (a) “Management accounting aims at providing financial results of the business to the management for taking decisions.” Explain by bringing out the advantage of management accounting.   11
Or
(b) Explain the characteristic features of management accounting. What are the tools which make it useful for the management?                  4+7=11

4. (a) The following information is given by XYZ Ltd. :
 Selling price per unit                                                                       Variable cost per unit                                                                      Fixed cost Rs. 10 6 24,000
You are required to calculate –
i.            Break-even sales (in units);
ii.            Sales to earn a profit of 10% on sales;
iii.            New BEP, if selling price is reduced by 10%.
iv.            New selling price, if BEP is to be brought down to 4800 units.      2+3+3+3=11
Or
(b) “Marginal costing is a very useful technique to management for cost control, profit planning and decision making.” Explain.     11
5. (a) A factory is currently running at 50% capacity and produces 5000 units at a cost of Rs. 90 per unit as per details given below:
 Raw materials – Labour – Factory overhead – Administrative overhead – The current selling price is Rs. 100 per unit. Rs. 50 Rs. 15 Rs. 15 (Rs. 6 fixed) Rs. 10 ( Rs. 5 fixed)
At 60% working, raw material cost per unit increases by 2% and selling price per unit falls by 2%.
At 80% working, raw material cost, per unit increases by 5% and selling price per unit falls by 5%.
Estimate profits of the factory at 60% and 80% working and offer your comments.             9+3=12
Or
(b) What do you mean by cash budget? What are its advantages? How is it prepared?      3+3+6=12

6. (a) X Ltd. furnished the following particulars for the year 2014:
 Actual output – 900 units Budgeted output – 1000 units Actual fixed overhead – Rs. 49,500 Budgeted fixed overhead – Rs. 50,000 Standard time per unit – 2 hours Actual clock hours – 1900 hours (including 200 hours as idle time)
You are required to calculate the following variances:                     2x5=10
Or
(b) What is standard costing? How would you distinguish it from budgetary control? Point out the limitations of standard costing.            2+4+4=10

7. (a) Following are the Balance Sheets of Tulsian Ltd. for the year ending on 31st March, 2013 and 31st March, 2014:
 Assets 31.03.2013 Rs. 31.03.2014 Rs. Fixed Assets 10% Investment (long term) Debtors Stock Cash Underwriting Commission Discount on Issue of Debentures 10,20,000 60,000 80,000 3,80,000 1,20,000 5,000 15,000 12,40,000 1,60,000 1,50,000 3,70,000 3,60,000 6,000 4,000 16,80,000 22,90,000 Liabilities 31.03.2013 Rs. 31.03.2014 Rs. Equity Share Capital 18% Preference Share Capital Profit & Loss A/c Reserves 14% Debentures Creditors Bank Overdraft Proposed Dividend Provision for Tax Provision for Doubtful Debts Unpaid Dividend Unpaid Interest on Debentures 6,00,000 4,00,000 1,00,000 1,20,000 2,00,000 40,000 60,000 1,20,000 20,000 20,000 - - 8,00,000 2,00,000 4,00,000 1,40,000 3,00,000 1,50,000 50,000 1,50,000 40,000 30,000 20,000 10,000 16,80,000 22,90,000