Twitter Facebook Delicious Digg Stumbleupon Favorites More

Thursday, 13 October 2016

BBA Semester 3: Management Accounting (Q. Paper 2015)

MANAGEMENT ACCOUNTING

BBA THIRD SEMESTER
END TERM EXAMINATION (DECEMBER 2015)

BBA Semester 3: Management Accounting (Q. Paper 2015)



Q1:Comment on ANY FIVE of the following statements. Your answer should not exceed 50 words each.5×3 = 15
(a) Depreciation is an "out of pocket" cost.
(b) Low gearing is preferable to high gearing.
(c) Decrease in current liabilities will increase working capital.
(d) The term 'funds' means 'current assets' in case of a cash flow analysis.
(e) There is no difference between a Forecast and a budget.
(f) Standard Costing aids management in planning and control.
(g) A cost variance is said to be favourable if standard cost is more than the actual cost.
(h) The variation of a stock is at higher price in absorption costing as compared to marginal costing
Q2:15
(a) Distinguish between Management Accounting and Cost Accounting.
(b) Explain the meaning of the term 'Financial Statements'. State their nature and limitations.
Q3:
(a) State the limitations between of Ratio Analysis.(5)
(b) With the help of following ratios regarding Indu Films, draw the 'Balance Sheet' of the company for current year.
(10)
Current Ratio2.5
Liquid Ratio1.5
Net Working Capital3,00,000
Stock Turnover Ratio (cost of sales/closing stock)6 times
Gross Profit Ratio20%
Fixed Assets turnover ratio (on cost of sales)2 times
Debt Collection Period2 months
Fixed assets to Shareholders net worth0.80
Reserve and Surplus to Capital0.50
Q4:
(a) Differentiate between a Cash Flow Statement vs Funds Flow Statement5
(b) The following are the summarised balance sheet of a company as on Dec 31, 2014 and 2015.
Liabilities2014 (₹) 2015 (₹)
Share Capital2,00,000 2,50,000 
General Reserve50,00060,000
Profit & Loss30,50030,000
Mortgage Loan (Long Term)70,000-
Sundry Creditors1,50,0001,35,000
Provision for Taxation30,00035,000
Assets
Land and Building2,00,0001,90,000
Machinery1,50,0001,69,000
Stocks1,00,00074,000
Sundry Debtors80,00064,200
Cash500600
Bank-8,000
Goodwill-5,000
5,30,5005,10,800

Additional information: During the year ended on Dec 31, 2015:
(a) Dividend of ₹ 23,000 was paid.
(b) Assets of another company were purchased for a consideration of ₹ 50,000 payable in shares. Assets acquired: Stock ₹20,000; Machinery: ₹25,000
(c) Machinery was further purchased for ₹8,000
(d) Depreciation written off on machinery ₹12,000
Income tax provided during the year ₹33,000
(f) Loss on sale of machinery ₹200 was written off to general reserve.
Prepare the cash flow statement.
(10)
Q5:
(a) Explain the meaning of budgetary control.
(b) The good city Police Department traditionally has prepared a functional budget and now there is discussion about using programme budget in an effort to control activities better and d a better job of securing resources from the state government. Below are the proposed financial budget for the next year and estimated data concerning the percentage of functional item costs assignable to each of the four major programme of the police department?
Good City Police Department Proposed Functional Budget
Salaries5,25,000
Vehicle Costs2,50,000
Supplies1,25,000
Utilities50,000
Misc.44,000
Total9,94,000

Percentage of Costs Assignable to Each Programme
Crime PreventionCriminal InvestigationCriminal ProceedingTraffic Movement
Salaries60%20%10%10%
Vehicle Costs70%20%2%8%
Supplies20%30%20%30%
Utilities10%60%20%10%
Misc.30%25%20%25%

Required: Prepare a programme budget for the year.
Q6:
(a) Differentiate between Standard Costing and Historical Costing.
(b) A company manufactures a particular product. The standard direct materials cost of which is ₹ 10 per unit. The following information is obtained from the costing records:
(i) Standard mix:
MaterialQuantity (units)Rate(₹)Amount(₹)
A7010700
B305150
Supplies100-850
Normal Loss(15%)15--
8525%20%

(ii) Actual results for June 2014
MaterialQuantity (units)Rate(₹)Amount(₹)
A400114,400
B20061,200
600-5000
Loss(10%)60--
5405,600

Compute:
(a) Material Price Variance
(b) Material Mix Variance
(c) Material Yield Variance
(d)Material Usage Variance
(e) Total Material Cost Variance
Q7:
(a) Differentiate between Marginal Costing and Absorption Costing.
(b) A firm has ₹ 10,00,000 invested in its plant and sets a goal of 15% annual return on investment. Fixed costs in the factory presently amount to ₹ 4,00,000 per year and variable costs amount to ₹15 per unit produced. In last year the firm produced and sold 50,000 units at ₹25 each and earned a profit of ₹ 1,00,000. How can management achieve their target profit goal by varying different variables like fixed costs, variable costs, quantity sold or increasing the selling price per unit?(10)
Q8:(a) Explain the concept of relevant costs.
(b) A company purchased a machine two years ago at a cost of ₹60,000. The equipment has no salvage value at the end if its six years. Useful life and the company charges depreciation according to straight line method. The company learns that a new equipment can be purchased at a cost of ₹80,000 to perform the same job and having an expected economic life of 4 years without any salvage value. The advantage of the new machine lies in its greater operating efficiency which will reduce the variable operating expenses from the present level of ₹1,65,000 to ₹1,31,000 per annum. The sales volume is expected to continue at ₹2 lacs per annum for the next four years.
Evaluate the usefulness of the proposal.

Share:

0 comments:

Post a Comment

NodeJS Tutorial

NodeJS Tutorial
Developer-Bytes

Maths Resources

Maths Resources
Maths Resources

Buy Books

Buy Books
Buy Books

Geography Quiz

Geography Quiz
Geography Quiz

History MCQs

History MCQs
History Quiz For Competitive exams

Categories

Popular Posts

GooglePlus

Recent Posts

Unordered List

Express Print Zone

Eduvictors Quizzes

Online Quizzes, Study notes for CBSE Class 6 - 12

Text Widget

Compete4Exams

Study notes for Competitive Exams

Developer Bytes

Developer Bytes
Developer Bytes
Powered by Blogger.

Blogger Tutorials

Blogger Templates

Sample Text

Copyright © IP University Musings BCA, MCA, BBA, MBA, BTech Question Papers and Study Notes | Powered by Blogger
Design by SimpleWpThemes | Blogger Theme by NewBloggerThemes.com