[Management Accounting Question Papers, Dibrugarh University, B.Com 5th Sem, General and Speciality, 2016]
Management Accounting Question Papers
2016 (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: 1x5=5
a)
In marginal costing system, fixed cost is
considered as ____ cost.
b)
Issue of equity shares in a cash flow from ____
activities.
c)
____ budget is a summary of all functional
budgets.
d)
Fixed cost per unit ____ when volume of
production increases.
e)
Margin of safety can be improved by reducing the
____ cost.
(b) Write True or
False: 1x3=3
a)
Management Accounting is concerned with
accounting information that is useful to the management.
b)
The difference between actual cost and standard
cost is known as differential cost.
c)
Cash Flow Statement is based upon accrual basis
of accounting.
2. Write short
notes on any four of the following: 4x4=16
a)
Tools of Management Accounting.
b)
Funds from Operation.
c)
Differential Costing.
d)
Cost-volume-profit Relationship.
e)
Budgetary Control.
f)
Performance Budgeting.
3. (a)
“Management Accounting has been evolved to meet the need of management.”
Explain this statement. 14
Or
(b) “Management
Accounting is nothing more than the use of financial information for management
purposes.” Explain this statement and clearly distinguish between Financial
Accounting and Management Accounting. 6+8=14
4. (a) The
following are the summaries of the Balance Sheets of EC Ltd. as on 31st
December, 2014, and 31st December, 2015:
Liabilities
|
31.12.2014
|
31.12.2015
|
Share Capital
Reserve Fund
Profit & Loss A/c
Bank Loan
Creditors
Provision for Taxation
|
2,00,000
50,000
30,500
70,000
1,55,000
30,000
|
2,50,000
60,000
30,600
-
1,40,200
35,000
|
5,35,500
|
5,15,800
|
|
Assets
|
31.12.2014
Rs.
|
31.12.2015
Rs.
|
Land & Buildings
Plant
Stock
Debtors
Cash
Bank
|
2,00,000
1,50,000
1,00,000
85,000
500
-
|
1,90,000
1,74,000
74,000
69,200
600
8,000
|
5,35,500
|
5,15,800
|
Additional Information:
a)
Depreciation on plant was Rs. 14,000 in 2015.
b)
Dividend of Rs. 20,000 was paid in 2015.
c)
Income tax provision for the year was Rs.
25,000.
d)
A piece of land was sold in 2015 at cost.
Prepare a
statement showing sources and application of fund and a schedule of changes in
working capital for 2015. 14
Or
(b) (i) What do
you mean by Cash Flow Statement? Explain the objects of Cash Flow Statement. 7
(ii)
Distinguish between Cash Flow Statement and Funds Flow Statement. 7
5. (a) The
following are the details of profit and loss data relating to a manufacturing
business:
Particulars
|
Rs.
|
Sales
Cost of Goods Sold:
Variable
40,000
Fixed
10,000
|
1,00,000
50,000
|
Gross Profit
Selling and Administrative
Cost:
Variable
10,000
Fixed
5,000
|
50,000
15,000
|
Net Profit
|
35,000
|
a)
From the above data, calculate:
1)
Profit-volume ratio;
2)
Break-even point;
3)
Profit for the sales volume of Rs. 1,60,000 and
Rs. 70,000.
b)
Would it be profitable to reduce the selling
price by 10% if it leads to an increase in sales by 30%? (2+3+4)+5=14
Or
(b) Define
marginal costing and discuss its contributions to the management in
decision-making. 5+9=14
6. (a) From the
following estimates of KJ Ltd. prepare a Sales Overhead Budget:
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Salaries of the sales department
Expenses of the sales department
Counter salesmen’s salaries and
dearness allowance
Counter salesmen are allowed
commission @ 2% on their sales.
Travelling salesmen are allowed
commission and expenses @ 10% and 5% on their sales respectively.
|
5,000
10,000
3,000
12,000
|
The estimated sales during the
period were as under:
Area
|
Counter sales Rs.
|
Sales by travelling salesmen
Rs.
|
I
II
III
|
1,60,000
2,40,000
2,80,000
|
20,000
30,000
40,000
|
Or
(b) What is sales budget? How it
is prepared? Distinguish between sales budget and production budget.
Also Read: Management Accounting Question Papers
(Old Course)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1. (a) Fill in the blanks: 1x5=5
a)
Standard cost is a ____ cost.
b)
P/V ratio exhibits the percentage of
contribution included in ____.
c)
Repayment of borrowing causes cash ____.
d)
____ budget is a summary of all functional
budgets.
e)
Fixed cost per unit ____ when volume of
production increases.
(b) Choose the correct answer: 1x3=3
a)
Variable cost per unit remains
same/increases/decreases due to increase in production.
b)
The practice of charging all costs to product is
marginal costing/absorption costing/standard costing.
c)
Standard costing is a method/process/technique
of Cost Accounting.
2. Write short
notes on any four of the following: 4x4=16
a)
Break-even Analysis.
b)
Zero-base Budgeting.
c)
Absorption Costing.
d)
Cash Budget.
e)
Advantages of Standard Costing.
f)
Overheads Variances.
3. (a) Discuss, in
detail, the functions of Management Accounting. 11
Or
(b) Explain the
role of a management accountant in a business enterprise. 11
4. (a) The
following are the Summarized Balance Sheets of Dibru Trading Ltd. as on 31st
March, 2015 and 31st March, 2016:
Liabilities
|
31.03.2015
Rs.
|
31.03.2016
Rs.
|
Equity Share Capital
14% Debentures
Securities Premium
General Reserve
Profit & Loss A/c
Sundry Creditors
Proposed Dividend
Provision for Depreciation:
Plant & Machinery
Furniture
|
2,00,000
50,000
-
30,000
48,000
1,35,000
20,000
1,40,000
6,000
|
2,40,000
-
10,000
50,000
68,000
1,55,000
24,000
1,50,000
4,000
|
6,29,000
|
7,01,000
|
|
Assets
|
31.03.2015
Rs.
|
31.03.2016
Rs.
|
Land & Buildings
Plant & Machinery (at cost)
Furniture (at cost)
Inventories
Sundry Debtors
Cash
|
1,05,000
2,90,000
9,000
1,30,000
80,000
15,000
|
1,50,000
3,20,000
10,000
1,05,000
90,000
26,000
|
6,29,000
|
7,01,000
|
Additional
Information:
a)
Furniture which cost Rs. 5,000, written down
value being Rs. 1,000, was sold in 2015 – 16 for Rs. 2,000.
b)
Plant & Machinery, which cost Rs. 20,000 and
in respect of which Rs. 13,000 had been written off as depreciation, was sold
in 2015 – 16 for Rs. 3,000.
c)
The dividend declared in 2014 – 15 was paid
during 2015 – 16.
From the above
particulars, you are required to prepare :
a)
A Statement of changes in working capital during
2015 – 16.
b)
Funds Flow Statement for 2015 – 16.
Or
(b) State whether
each of the following transactions would increase; decrease or have no effect
on working capital: 2x6=12
a)
Purchase of goods on credit.
b)
Payment of previous year’s dividend.
c)
Sale of furniture on credit.
d)
Issue of preference share.
e)
Sale of old assets.
f)
Payment of bills payable.
5. (a) From the
data given below, calculate: 2+3+3+3=11
a)
Contribution;
b)
Profit-volume ratio;
c)
Break-even point;
d)
Sales to earn a profit of Rs. 3,00,000;
Fixed Cost – Rs. 1,80,000
Variable cost per unit:
Direct Material – Rs. 6
Direct Labour – Rs. 3
Direct Overheads – 100% of direct
labour
Selling price per unit – Rs. 15
Or
(b) (i) State any
three similarities between marginal costing and differential costing. 3
(ii)
Describe the major areas of application of marginal costing system. What is the
necessity of analysis of marginal cost? 8
6. (a)
What do you understand by the terms ‘budget’ and ‘budgetary control’? Discuss
the benefits derived from an efficient system of budgetary control. (2+3)+6=11
Or
(b) A
company is currently working at 50% capacity and produces 10000 units. Estimate
the profit of the company when it works at 60% and 70% capacity.
At 60%
capacity, the raw material cost increases by 2% and selling price falls by 3%.
At 70%
capacity, the raw material cost increases by 4% and selling price falls by 5%.
At 50%
capacity working, the product cost is Rs. 180 per unit and the selling price is
Rs. 200 per unit.
The unit
cost of Rs. 180 is made up as follows:
Rs.
|
|
Raw Material
Wages
Factory overhead (40%
fixed)
Administrative overhead
(50% fixed)
|
100
30
20
30
|
180
|
7. (a)
From the particulars given below, calculate:
a)
Material price variance;
b)
Material usage variance;
c)
Material mix variance;
Standard
|
Actual
|
|||||
Materials
|
Quantity
(kg)
|
Unit Price
Rs.
|
Total
Rs.
|
Quantity
(kg)
|
Unit Price
Rs.
|
Total
Rs.
|
A
B
C
|
40
20
20
|
10
20
40
|
400
400
800
|
20
10
30
|
35
20
30
|
700
200
900
|
Or
(b) What do you
understand by the terms ‘variance’ and ‘variance analyses’? Discuss the
importance of variance analysis. (2+3)+6=11