2018
(July)
COMMERCE
Paper: 303
(Management Accounting)
Full Marks: 90
Time: 3 hours
The figures in the margin indicate full marks for the questions
1. (a) Fill in the blanks: 1x5=5
1) Management Accountant supplies information to the _______.
2) _______ is the difference between Current Assets and Current Liabilities.
3) Sales-Variable Cost = _______.
4) Budget is a _______ expressed in monetary terms.
5) Standard Cost is a _______ Cost.
(b) Write ‘True’ or ‘False’: 1x5=5
1) Management Accounting and Cost Accounting are synonymous.
2) Cash Flow Statement is useful for short-term financial planning.
3) Margin of Safety = Actual Sales – Standard Sales.
4) Purchase Budget should be prepared by purchase manager.
5) Standard costs are useful in planning and budgeting.
2. Write short notes on: 4x5=20
a) Tools of Management Accounting.
b) Investing Activities.
c) Break-Even Analysis.
d) Zero-Base Budgeting.
e) Labour Variances.
3. (a) Define Management Accounting. Distinguish between Management Accounting and Financial Accounting. 3+9=12
Or
(b) Discuss the functions of Management Accounting useful in decision-making. 12
4. (a) What is Fund Flow Statement? What are its objectives? Distinguish between Fund Flow Statement and Cash Flow Statement. 2+4+6=12
Or
(b) The following are the summaries of the Balance Sheets of Everest Co. Ltd. as on 31.3.2014 and 31.3.2015:
Liabilities: | 31.3.2014 (Rs.) | 31.3.2015 (Rs.) |
Share Capital Reserve Fund Profit and Loss Account Bank Loan Creditors Provision for Depreciation | 2,00,000 50,000 30,500 70,000 1,50,000 30,000 | 2,50,000 60,000 30,600 - 1,35,200 35,000 |
Total | 5,30,500 | 5,10,800 |
Assets: Land and Building Plant Stock Debtors Cash Bank | 2,00,000 1,50,000 1,00,000 80,000 500 - | 1,90,000 1,74,000 74,000 64,200 600 8,000 |
Total | 5,30,500 | 5,10,800 |
Additional Information:
a) Depreciation on Plant was Rs. 14,000 in 2014-15.
b) Dividend was paid Rs. 20,000 in 2014-15.
c) Income Tax Provision for the year was Rs. 25,000.
d) A piece of land was sold during the year at cost.
Prepare a Statement showing Sources and Application of Fund and a Schedule of changes in working capital for the year 2014-15. 12
5. (a) “Marginal and Differential Costing can be used as a tool for management decision-making process.” Explain. 12
Or
(b) From the following particulars, calculate: 3x4=12
1) Contribution.
2) P/V Ratio.
3) Break-Even Point in units and in rupees.
4) Determine the selling price unit if the Break-Even Point is brought down to 25,000 units.
Rs. | |
Fixed Expenses Variable Cost per unit Selling Price per unit | 1,50,000 10 15 |
6. (a) What do you mean by Flexible Budget? Explain its objectives and advantages. 3+4+5=12
Or
(b) Prepare a Sales Overhead Budget from the estimates given below: 12
Rs. | |
Salaries of Sales Department Expenses Sales Department Advertisement Counter Salesman Salaries | 15,000 2,000 3,000 8,000 |
Commission to counter salesman at 1% on their sales
Travelling Salesman’s Commission at 10% on their sales and expenses at 5% on their sales
The sales during the period were estimated as follows:
Area | Counter Sales (Rs.) | Travelling Salesman’s Sales (Rs.) |
I II III | 1,00,000 1,50,000 2,00,000 | 20,000 30,000 15,000 |
7. (a) Define Standard Costing? Distinguish between Standard Costing and Budgetary Control. 4+8=12
Or
(b) From the data given below, calculate all material variances: 12
Raw Materials | Standard | Actual |
A B | 40 units @ Rs. 50 per unit 60 units @ Rs. 40 per unit | 50 units @ Rs. 50 per unit 60 units @ Rs. 45 per units |
-000-
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