(8 pages) Reg. No. :... Sub. Code : R 3 BA 52/ B 3 BA 52 B.B.A. (CBCS) DEGREE EXAMINATION, NOVEMBER 2014. Fifth Semester Business Administration Main MANAGEMENT ACCOUNTING (For those who joined in July 2008-2011) Time : Three hours Maximum : 75 marks PART A (10 1 = 10 marks) Answer ALL questions. 1. Management accounting relates to recording of accounting data recording of costing data presentation of accounting data none of these
2. Management accounting is helpful is increasing efficiency profitability obligatory none of the above 3. The term fixed assets includes stock in trade furniture payment in advance all the above 4. A budget that gives a summary of all the functional budgets and projected profit and loss account in known as capital budget flexible budget master budget discretionary budget 5. The success of a flexible budget depends upon careful study and classification of expenses ratio into historical and future manufacturing, administrative direct, indirect and selling fixed, variable and semi-variable Page 2
6. The cost of a product as determined under standard cost system is fixed cost historical cost direct cost pre-determined cost 7. Variance is the difference between budgeted and actual level of activity standard and actual level of activity both and none of these 8. The statistical yard stick that provides a measure of the relationship between two accounting figure is current ratio the accounting ratio capital out put ratio none of the above Page 3
9. Observing changes is the financial variable across the years vertical analysis horizontal analysis inter-firm comparison none of the above 10. The report which is prepared by manager accountant cashier all the above PART B (5 5 = 25 marks) Answer ALL questions, choosing either or. Answer should not exceed 250 words. 11. Define the term budgeting. Explain the various types of budgeting. 12. Define standard costing. Explain the steps in the fixation of standards. Page 4 [P.T.O.]
13. Explain the meaning and features of relevant cost. What do you mean by differential cost? 14. Current ratio 2.5 Liquidity ratio 1.5 Working capital Rs. 60,000 Calculate (i) (ii) current liabilities Current assets (iii) Liquid assets (iv) Stock. Determine the value of closing stock from the following details. Sales Rs. 4,00,000 Gross profit ratio = 10% Stock turn over ratio = 4 times Closing stock was Rs. 10,000 is excess of opening stock. Page 5
15. What are the various types of report? Define the term sales report. PART C (5 8 = 40 marks) Answer ALL questions, choosing either or. Answer should not exceed 600 words. 16. Distinguish between cost accounting and management accounting. A manufacturing company submits the following figures of a product for the first quarter of 2008. Sales (in units) January 30,000, February 25,000, March 35,000. Selling price per unit Rs. 20 Target of 1 st quarter 2009 Sales quantity increase 10% Sales price increase 10% Prepare sales budget for the first quarter of 2009. 17. What are the different types of standards? Page 6
A manufacturing concern which has adopted standard costing furnishes the following information. Standard : Material for 70 kg of finished product 100 kg price of materials Rs. 1 per kg. Actual : Output 2,10,000 kg Material used 2,80,000 kg Cost of materials 2,52,000. Calculate : (i) material usage variance (ii) material price variance (iii) material cost variance. 18. Explain how marginal costing technique is useful in day-to-day decision making. A factory manufacturing sewing machines has the capacity to produce 500 machines per annum. The marginal cost of each machine is Rs. 200 and each machine is sold for Rs. 250. Fixed overheads are Rs. 12,000 per annum. Calculate the break-even points for output and sales and show what profit will result if output is 90% of capacity? Page 7
19. From the following data, you are required to calculate the break-even point and net sales value at this point. Selling price per unit Rs. 25 Direct material cost per unit Rs. 8 Direct labour cost per unit Rs. 5 Fixed overheads Rs. 24,000 Variable overhead @ 60% on direct labour Trade discount 4%, if sales are 15% and 20% above the break-even volume, determine the net profits. What are the types of inter-firm comparison? 20. What is M.I.S? What are the essential characteristics of useful and effective information system? Distinguish between routine report and special reports. Page 8