Solapur University Question Paper,MANAGEMENT ACCOUNTING (Paper – XVIII) (Old),M.B.A. (Part – II) (Semester – III),2014 Question Paper

Solapur University Question Paper
M.B.A. (Part – II) (Semester – III) Examination, 2014
MANAGEMENT ACCOUNTING (Paper – XVIII) (Old)
Day and Date : Wednesday, 28-5-2014 Total Marks : 70
Time : 11.00 a.m. to 2.00 p.m.
Instructions : 1) Question No. 1 and 7 are compulsory.
2) Attempt any two questions from Q. No. 2 to Q. No. 4.
3) Attempt any one question from Q. No. 5 to Q. No. 6.
1. A) Fill in the blanks. 5
i) The _______ helps in cost reduction and cost control.
ii) The poor performance can be expressed by ________ standards.
iii) Labour mix variance is known as _________.
iv) Management control involves both _______ and control.
v) Break-Even chart is a __________ representation of cost-volume-profit
relationship.
B) State whether the following statements are true or false. 4
i) The Cost-Volume-Profit (CVP) analysis is the study of the effects of
output volume on sales, costs and profit.
ii) Alternative having greater contribution shows lower profitability.
iii) Peter Drucker has identified thirteen areas of control.
iv) A budget is nothing but an estimate.
C) Choose correct option from the following. 5
i) What costs are treated as product costs under marginal costing ?
a) Direct costs b) Variable production costs
c) All variable d) All variable and fixed costs
ii) Under marginal costing, stocks are valued at
a) Total Cost b) Marginal Cost
c) Direct Cost d) Production Cost
Seat
No.
SLR-XY – 26 -2-
iii) The break-even analysis may be described as
a) Comparison between production and sales
b) Comparison between budget and actual
c) Comparison between sales and costs
d) Comparison to make out capacity utilization
iv) Standard cost is used
a) As a basis for price fixation and cost control through variance analysis
b) To ascertain the break-even-point
c) To establish cost-volume-profit relationship
d) To ascertain estimated cost
v) Standard price of material per kg. is Rs. 20, standard usage per unit of
production is 5 kg. Actual usage of producing 100 units is 520 kg. of all of
which was purchased at the rate of Rs. 22 per kg. Material usage variance
is
a) Rs. 1,040 (A) b) Rs. 400 (A)
c) Rs. 400 (F) d) Rs. 1,040 (F)
2. Write short notes on (any two) : 14
a) Objectives of Management Accounting
b) Types of Audit
c) Objectives of Reporting
3. From the following information, calculate 14
i) Labour Cost Variance
ii) Labour Rate Variance
iii) Labour Efficiency Variance
iv) Labour Mix Variance
v) Labour Sub efficiency Variance.
Standard Production 200 Units Actual Production 250 Units
Workman A-25 Hrs.@ Rs. 3/- per Hr. Workman A-25 Hrs.@ Rs. 4/- per Hr.
Workman B-37.5 Hrs.@ Rs. 7/- per Hr. Workman B-40 Hrs.@ Rs. 8/- per Hr.
Workman C-62.5 Hrs.@ Rs. 5/- per Hr. Workman C-65 Hrs.@ Rs. 6/- per Hr.
 125 Hrs. 130 Hrs.
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4. ‘Management Accounting aims at providing financial results of business to the
management for taking decision’. Explain. 14
5. a) From the following information relating to Quality Products Ltd., you are required
to find out : 7
i) Contribution
ii) P/V ratio
iii) Break-even point in units
iv) Margin of safety
v) Profit
Total fixed cost Rs. 4,500/-
Total variable costs Rs. 7,500/-
Total sales Rs.15,000/-
Units sold 5,000 units
vi) Also calculate the volume of sales to earn a profit of Rs. 6,000/-.
b) Explain reporting needs at different levels of management. 7
6. Explain management control system. Describe the management control system
in service organisation. 14
7. ABC Ltd., a newly started company wishes to prepare cash budget from January.
Prepare a cash budget for the first six months from the following estimated
revenue and expenses : 14
Month Total Sales Materials Wages Overheads Selling &
Production Distribution
 Rs. Rs. Rs. Rs. Rs.
January 20,000 20,000 4,000 3,200 800
February 22,000 14,000 4,400 3,300 900
March 28,000 14,000 4,600 3,400 900
April 36,000 22,000 4,600 3,500 1,000
May 30,000 20,000 4,000 3,200 900
June 40,000 25,000 5,000 3,600 1,200
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Cash balance on 1st January was Rs. 10,000. A new machinery is to be installed
at Rs. 20,000 on credit, to be repaid by two equal installments in March and
April.
Sales commission @ 5% on total sales is to be paid within a month following
actual sales.
Rs. 10,000 being the amount of 2nd call may be received in March. Share premium
amounting to Rs. 2,000 is also obtainable with the 2nd call.
Period of credit allowed by suppliers – 2 months
Period of credit allowed to customers – 1 month
Delay in payment of overheads – 1 month
Delay in payment of wages – ½ month
Assume cash sales to be 50% of total sales.
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