Wednesday, February 13, 2019

Gauhati University Question Papers:MANAGEMENT ACCOUNTING (MAJOR) (May-June'2014)

Gauhati University Question Papers
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)         Marginal Costing regards only variable cost; but fixed cost is treated as period cost.
2)         ‘Standard Cost is a predetermined calculation of how much costs should be under specified conditions.’
3)         Budgetary control cannot be applied in parts or segments and it is a composite and comprehensive item.
4)         _____ is a cost measured by the change in cost due to change in output by aggregate of all units taken together. (Choose the most appropriate option from: marginal cost, fixed cost, joint cost)
5)         Management accounting does not embrace presentation of accounting information that assist management in its operating activity and undertaking managerial decisions.
(b) Fill in the blank with appropriate word/words:                                        1x5=5
1)         Cost volume profit (CPV) technique is based on the assumption that fixed cost, variable cost and selling price per unit are _____ for the time period analysed. (Choose from: constant; variable; semi-variable)
2)         All the budgets like production, sales material, labour expenses are then integrated to form a single budget is known as _____.
3)         Standard cost is a _____ cost which is calculated from management’s standards of efficient operation and the relevant necessary expenditure.
4)         When actual cost is greater than standard cost, then variance is _____.
5)         Electronic data processing and real time information sharing can be facilitated by _____ accounting system.
(c) Write brief answers to the following in about 50 words each:                                            2x5=10
1)         State the nature of management accounting.
2)         State the meaning of marginal cost and its use.
3)         Discuss the reasons for preparation of flexible budget.
4)         How does variance arising in standard costing?
5)         What is the meaning of budget?
2. Write short notes on any four of the following:                                             5x4=20
a)         Break even analysis.
b)         Distinction between standard costing and budgetary control.
c)          Assumptions of marginal costing.
d)         Use of accounting information for management purpose.
e)         Use of budgetary control as a control device.
f)          Variance analysis in standard costing.
3. From the following information prepare an Income Statement under marginal costing:                             10


Direct materials
Direct wages
Factory overhead: Fixed
Selling overhead: Fixed
Opening Stock of finished goods valued at variable cost
Fixed factory overhead and fixed selling overhead were appointed to products x and y on equitable bases.
Describe the managerial application of managerial costing techniques in various decision-making areas.             10
4. Explain the different tools and techniques of management accounting in areas of decision-making.                    10
Elaborate the application of computer and information technology (CIT) in dissemination of managerial information in management accounting.                                            10
5. A department of Bank Green Resort Company attains sales of Rs. 6,00,000 at 80% of its normal capacity. It expenses are given below:

Office Salaries
General Expenses
Rent and rates
Selling Cost:
Travelling Expenses
Sales Office Expenses
Distribution Cost:
Rs. 90,000
2% of sales
Rs. 7,500
Rs. 8,750

10% of sales
2% of sales

Rs. 15,000
5% of sales
All fixed expenses are assumed to remain unchanged even at 100% capacity.
Draw up Flexible Administration, Selling and Distribution cost budget, operating at 100% of normal capacity.
State the initial steps to be taken for installation of a budgetary control system. In this context highlight the contents of a budget manual.
6. From the following particulars of Gorchuk Green Co. compute: (a) material cost variance, (b) material price variance, (c) material usage variance, and state managerial use of such variances:

Quantity of materials purchased units
Value of materials purchased
Standard quality of materials required –
Per ton to output
Standard rate of material
Opening Stock of materials
Closing Stock of materials
Output during the period
3,000 units
Rs. 9,000

25 units
Rs. 2.50 per unit
10 units
510 units
75 units

State the advantages of standard costing. Discuss the steps of setting standard costs.                                10


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