Management Accounting Question Paper 2020 (Held in 2021), Assam University B.Com 5th Sem Question Paper

 Assam University B.Com 5th Sem Question Paper CBCS Pattern
2020/TDC (CBCS)/ODD/SEM/COMDSE-501T (A) /349
TDC (CBCS) Odd Semester Exam, 2020
Held in March, 2021
COMMERCE (5th Semester)
Course No.: COMDSE-501T (A)
(Management Accounting)
Full Marks: 70
Pass Marks: 28
Time: 3 hours
The figures in the margin indicate full marks for the questions.

SECTION – A

Fill in the blanks/Choose the correct option/Answer any twenty of the following: 1x20=20

1. Management Accounting assists the management in _______.

2. Management Accounting and Cost Accounting are synonymous.

(a)       True.

(b)       False.

3. The approach of Management Accounting is

(a)       Historical.

(b)       Futuristic.

4. Management Accounting deals with what type of information?

(a)       Qualitative.

(b)       Quantitative.

(c)        Both (a) and (b).

5. Management Accounting does not need Financial Accounting and Cost Accounting as its base for installation.

(a)       True.

(b)       False.

6. The use of Management Accounting in business is

(a)       Optional.

(b)       Compulsory.

7. Responsibility accounting is a controlling tool for _______ level management.

(a)       Top.

(b)       Middle.

(c)        Lower.

8. What do you mean by Cost Accounting?

9. Budgetary control is a system of controlling.

(a)       Costs.

(b)       Profit.

10. Sales budget and production budget are types of _______ budget.

11. A budget is prepared for an indefinite period.

(a)       True.

(b)       False.

12. Budgets deal with _______ type of information.

(a)       Qualitative.

(b)       Quantitative.

13. What is meant by budget?

14. What do you mean by semi-variable overheads?

15. Define cash budget.

16. Differentiate between fixed budget and flexible budget.

17. Labour rate variance = _______.

18. The technique of standard costing is applicable in case of _______ concern.

(a)       Small.

(b)       Big.

19. A favourable variance will arise when capital revenues are _______ than expected.

20. Define standard cost.

21. What are the divisions of material variances?

22. What do you mean by labour idle time variance?

23. What do you mean by volume variance?

24. Explain the meaning of standard hour.

25. What is P/V ratio?

26. In marginal costing, managerial decisions are guided by contribution margin that by profit.

(a)       True.

(b)       False.

27. Technique of marginal costing is based on classification of costs into _______ costs.

28. Period cost means

(a)       Fixed cost.

(b)       Variable cost.

(c)        Prime cost.

29. Define the term ‘margin of safety’.

30. What do you mean by break-even point of sales?

31. If fixed cost is Rs. 10,000 and profit volume ratio is 50%, then the break-even point is _______.

32. Find the profit volume ratio:

Period

Sales (Rs.)

Profit (Rs.)

I

1,20,000

9,000

II

1,40,000

13,000

 33. Contribution = _______.

34. Sales pricing decisions do not consider _______ of competitors’ product.

(a)       Costs.

(b)       Sale price.

35. Contribution and incremental revenue are same.

(a)       True.

(b)       False.

36. Define the terms relevant costs and irrelevant costs.

37. What do you mean by replacement cost?

38. What do you mean by opportunity cost?

39. What do you mean by product-mix decision?

40. Define the term national or imputed cost.

Assam University B.Com 5th Sem Question Papers

1. Management Accounting: 2021
2. Fundamentals of Financial Management: 2021
3. Principles of Marketing: 2021
4. Human Resource Management: 2021
5. Auditing and Corporate Governance: 2021
6. Financial Market, Institutions and Financial Services: 2021

SECTION – B

Answer any five of the following questions:          2x5=10

41. Differentiate between Cost control and Cost reduction.

42. Discuss few limitations of Management Accounting.

43. What do you mean by zero-base budgeting?

44. Write any two advantages of budgetary control.

45. What do you mean by management by exception?

46. Given that the standard costs for materials consumption are 40 kg at Rs. 10 per kg. Compute the variances when actual are 48 kg at Rs. 12 per kg.

47. State a few objectives of cost-volume profit analysis.

48. A company has earned a contribution of Rs. 2,00,000 and net profit of Rs. 1,50,000 on sales of Rs. 8,00,000. What is the margin of safety?

49. Discuss any two methods of pricing.

50. What is meant by make or buy decisions? Mention any one factor influencing make or buy decision.

SECTION – C

Answer any five questions

51. Differentiate between Cost Accounting and Management Accounting.  8

52. Discuss in brief any two techniques used in Management Accounting.     4+4=8

53. What do you mean by Budgetary Control? State the main objectives of budgetary control.  2+6=8

54. A company working at 50% capacity manufactures 10,000 units of a product. At 50% capacity, the product cost is   Rs. 180 and sale price is Rs. 200. The break-up of the cost is as below:     8

 

Cost per unit (Rs.)

Material

100

Wages

30

Factory overheads

30 (40% fixed)

Administrative overheads

20 (50% fixed)

At 60% working, material cost goes up by 2% and sales price falls by 2%. At 80% working, material cost increases by 5% and the sale price decreases by 5%. Prepare a flexible budget at 60% and 80% capacity showing probability.

55. Discuss the advantages and disadvantages of standard costing.        4+4=8

56. Following information is available from the cost records of XYZ. For the month of March, 2020:

 

Rs.

Materials purchased 20,000 units

Materials consumed 19,000 units

Actual wages paid for 4,950 hr

Units produced 1,800 units

88,000

 

24,750

Standard rates and pieces are as follows:

Direct material rate is Rs. 4 per unit.

Standard input is 10 nos. for one unit.

Direct labour rate is Rs. 4 per hour.

Standard requirement is 2.5 hour per unit.

You are required to compute all materials and labour variances for the month of March, 2020.   8

57. Discuss some important advantages and limitations of marginal costing.                          5+3=8

58. Prepare an income statement using marginal costing method of XYZ Ltd.:                       8

Production

Sales

Selling price/unit

Direct materials

Direct labour

Factory overheads:

Variable

Fixed

Selling and distribution overheads:

Variable

Fixed

1,00,000 units

80,000 units

Rs. 15

Rs. 2,50,000

Rs. 3,00,000

 

Rs. 1,00,000

Rs. 2,50,000

 

Rs. 1,00,000

Rs. 2,00,000

59. Discuss some important areas where marginal costing technique can be used for decision making.    8

60. Furniture Inn manufactures mini stools. Recently a supplier has offered the stools of the same quality @ Rs. 140 each with an assurance of continued supply. The following is the budget for 4,000 units. Prepared for the year ending 31st March, 2020:

 

Rs.

Raw material cost

Direct wages

Production overheads:

Variable

Fixed

Distribution costs:

Variable

Fixed

Administrative costs:

Variable

Fixed

2,00,000

1,80,000

 

1,20,000

1,40,000

 

60,000

75,000

 

50,000

1,25,000

You are required to find the following:  5+3=8

(a)       Should Furniture Inn accept the offer from the supplier?

(b)       What would be the decision if the supplier offered the tables at Rs. 120 each?

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