Thursday, February 07, 2019

Gauhati University Question Papers: MANAGEMENT ACCOUNTING (May-June'2016)


Gauhati University Question Papers
MANAGEMENT ACCOUNTING (May-June'2016)
(MAJOR)
Full Marks: 80
Time: 3 hours
The figures in the margin indicate full marks for the questions

1. (a) State whether the following statements are True or False:                                               1x5=5
1)         Management accounting anticipates future events.
2)         Profit-volume ratio is also known as contribution ratio.
3)         Standard costing and budgetary control are similar in nature.
4)         A flexible budget is also known as variable budget.
5)         Material usage variance is the same as material quantity variance.
(b) Fill in the blanks with appropriate words:                                   1x5=5
1)         Management accounting provides all possible information required for _____ purposes.
2)         Prime cost plus variable overhead is known as _____ cost.
3)         All functional budgets are integrated to form a _____ budget.
4)         Idle time variance is always _____.
5)         Budgetary control emphasizes on controlling of cost, while standard costing emphasises on achieving of _____.
(c) Write in brief on the following in about 50 words each:                                        2x5=10
1)         Scope of Management Accounting.
2)         Advantages of Marginal Costing.
3)         Meaning of Budgetary Control.
4)         Limitations of Standard Costing.
5)         Two points of distinction between Fixed Budget and Flexible Budget.
2. Write short notes on any four of the following:                                             5x4=20
a)         Five points of differences between Financial Accounting and Management Accounting.
b)         Cost-volume Profit Analysis.
c)          Objectives of Budgetary Control.
d)         Distinction between Standard Costing and Budgetary Control.
e)         Components of Labour Cost Variance.
f)          Use of Accounting Information for Management Purpose.
3. Describe the tools and techniques of management accounting needed for managerial decisions.         10
Or
“Management accounting is concerned with information which is useful to management.” Explain the above statement highlighting the nature of information referred to.
4. The information in respect of sales and profit of a concern are given below:
Year
Sales
(Rs.)
Profit
(Rs.)
2014
2015
1,00,000
1,20,000
15,000
23,000
You are required to calculate the following:
1)         P/V ratio
2)         Fixed cost.
3)         Break-even point.
4)         Profit when sales are Rs. 1,25,000
5)         Sales required to earn a profit of Rs. 20,000
Or
Describe the managerial application of marginal costing techniques in various decision-making areas.                  10
5. X Ltd. uses standard costing and furnished the following information:
Standard material for 700 units of finished product
Standard price of material
Actual output produced
Opening stock of material
Purchased 3,00,000 kg of material for
Closing stock of material
1000 kg
Rs. 1 per kg
2,10,000 units
22,000 kg
Rs. 2,70,000
17,000 kg
Calculate the following:
a)         Direct material cost variance.
b)         Direct material price variance.
c)          Direct material usage variance.
Give the significance of the above variances.                                      10
Or
State the meaning of standard costing. Explain the steps of setting standard cost.   3+7=10
6. The expenses for production of 6,000 units and 8,000 units at 60% and 80% capacity respectively in a factory are given below:


Expenses (in Rs.)

6,000 units
8,000 units
Material
Labour
Direct Expenses
Factory overhead
Administrative overhead
Selling expenses
4,20,000
1,50,000
30,000
2,20,000
50,000
83,200
5,60,000
2,00,000
40,000
2,60,000
50,000
1,06,600

9,53,200
12,16,600
Administrative overhead, fixed factory overhead and fixed selling expenses are rigid at any level of activity upto 100% capacity. Prepare a Flexible Budget for production of 10,000 units at 100% capacity. [Show proper working notes]           10
Or
State the advantages and limitations of budgetary control in a business.                   5+5=10

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