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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