M.Com. (Professional) DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
Third Semester
Paper II ADVANCED COST AND MANAGEMENT ACCOUNTING

2 30132
Time 3 Hours Max. Marks 100
SECTION — A
Answer any FIVE questions. 8 40 Marks)
Each question carries 8 marks.
1. Nature and scope of management accounting.
2. Explain meaning and significance of responsibility accounting.
3. What do you mean by functional budget? Discuss any two such budgets.
4. Variance analysis is an integral part of standard costing system. Explain.
5. Distinguish between marginal costing and absorption costing.
6. From the following information calculate
P/V ratio
Break-even point
If the selling price in reduced to Rs. 80
Calculate New break-even point
Total sales Rs. 5,00,000
Selling price per unit Rs. 100
Variable cost per unit Rs. 60
Fixed cost Rs. 1,20,000.
7. What are the applications of ABC systems?
8. What are the essential characteristics of a good report?

SECTION — B
Answer ALL questions. 15 60 Marks)
Each question carries 15 marks.
9. Discuss the basic difference between financial, management and cost
accounting system.
Or
Enumerate and briefly explain any three methods of determining transfer
prices.
10. Explain any six variances, two each under materials labour and overheads.
Or
The standard cost of a chemical mixture is of under
8 tons of material A at Rs. 40 per ton 12 tons of material B at Rs 60 per ton
standard yield is 90% of input. Actual cost for a period is as under 10 tons of
material A at Rs. 30 per ton 20 tons of material B at Rs. 68 per ton actual
yield is 26.5 tons. Compute all materials variances.
11. Explain the managerial uses and limitations of CVP analysis in profit
planning.
Or
The following data are available in a manufacturing company for a year
period.
(Rs. Lakhs)
Fixed expenses
Wages and salaries 9.5
Rent, rates and taxes 6.6
Depreciation 7.4
Sundry administrative expenses 6.5
Semi-variable expenses (at 80% capacity)
Maintenance and repairs 3.5
Indirect labour 7.9
Sales department salaries etc 3.8
Sundry administrative expenses 2.8
3 30132
(Rs. Lakhs)
Variable expenses (at 50% of capacity)
Materials 21.7
Labour 20.4
Other expenses 7.9
98.0
Assume that the fixed expenses remain constant for all level of production,
semi variable expenses remain constant between 45% and 65% of capacity
increasing by 10% between 65% and 80% capacity and by 20% between 80%
and 100% capacity. Prepare a budget.
12. Discuss cost management with reference to management of value chain.
Or
What is reporting? What are the essential requisites of reports to make them
useful to management?
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