M.Com. DEGREE EXAMINATION, APRIL/MAY 2018.
Second Semester
COST AND MANAGEMENT ACCOUNTING
(Common for M.Com. (General and Professional)
2 1730123
Time 3 Hours Max. Marks 70
SECTION — A
Answer any FIVE questions. 4 20 Marks)
1. Objectives of Management Accounting.
2. Flexible Budget.
3. Marginal Costing.
4. Profit Volume Ratio.
5. Value Chain analysis.
6. Meaning of cash flow analysis.
7. Zero Based Budgeting.
8. Responsibility Centres.
SECTION — B
Answer ALL FIVE questions. 10 50 Marks)
9. State main differences between cost accounting and management accounting.
Or
What is the role of a management accountant in management process?

10. Explain the different types of budgets.
Or
From the data given below, calculate all material variances.
Consumption for 100 units of product
Raw material Standard Actual
A 40 units 50 per unit 50 units 50 per unit
B 60 units 40 per unit 60 units 45 per unit
11. What is Cost-Volume profit analysis? Give its objectives and importance.
Or
A manufacture is producing a standard mix of 85,000 units. Details is as
follows
A B C
Unit produced 15,000 10,000 10,000
Variable cost 44 66 72
Selling price 62.5 75 105
He Derises to change the mix as follows.
Mix 1 Mix 2 Mix 3
units units units
A 18,000 15,000 22,000
B 12,000 6,000 8,000
C 7,000 13,000 8,000
Total units 37,000 34,000 38,000
Total fixed cost 7,00,000
Required Comparative profitability statement of 3 products
Recommendation for most profitable mix.
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12. Distinguish between funds flow statement and cash flow statement.
Or
From the following particulars prepare funds flow statement.
1st Jan 31st Dec 1st Jan 31st Dec
Creditors 36,000 41,000 Cash 4,000 3,600
Mrs. loan 20,000 Debtors 35,000 38,400
Bank loan 30,000 25,000 Stock 25,000 22,000
Capital 1,48,000 1,49,000 Land 20,000 30,000
Buildings 50,000 55,000
Machinery 80,000 86,000
2,14,000 2,35,000 2,14,000 2,35,000
During the year Mrs. A (proprietor) has drawn 26,000 for personal use. The
provision for Depreciation against machinery as on 1st Jan was 27,000 and
as on 31st Dec. 36,000
13. Mention any four centres, classified under responsibility accounting. Explain
investment centre.
Or
Discuss the significance of valve chain management.
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