M.Com. (Semester IV) (CBCS) Examination Nov/Dec-2018
MANAGEMENT ACCOUNTING II
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the correct alternative:- 14
The concept of marginal costing is based on
Fixed cost Standard cost
Variable cost Prime cost
The condition of no profit-no loss is known as
Mid point Break-even point
Fixed point Starting point
The difference between actual sales and sales at break-even point is called

Margin of safety Margin of loss
Sales margin Margin of contribution
Analysis of the deviation from actual and standard cost is called
Variance analysis Cost analysis
Budget analysis Inventory analysis
Material usage variance is otherwise called as
Material mix variance Material price variance
Material quantity variance Material cost variance
Budget is prepared for
Future period Present period
Past period Any period
The budget prepare for a given level of activity is known as
Variable budget Fixed budget
Market budget Budget Manual
An instrument which communicates information from one person to another is
called
Report Balance sheet
Facts Management
The system of providing information to right persons at night time is known as

Operation Management information system
Control Planning
10) When Fixed cost is Rs. 10,000 and P/V Ratio is 50% the break-even point will
be:
Rs. 20,000 Rs. 40,000
Rs. 50,000 Rs. 70,000
11) Overhead cost Variance is the difference between overheads and
actual overheads for actual output.
Fixed Variable
Office Absorbed
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12) The variance that shows the impact of time lost is
Labour Rate Variance Idle Time Variance
Labour Efficiency Variance Labour Yield Variance
13) A is nothing but a cash flow statement.
Sales budget Purchase budget
Production budget Cash budget
14) Standard costing helps in:
Measuring efficiency Reducing losses
Controlling prices Reducing value
Q.2 Write short notes: 14
Distinction between Fixed and Flexible Budgets
Management Information System
Q.3 Answer the following question:- 14
Calculate:
P/V ratio
Fixed Cost
Sales volume to earn profit of Rs. 1,25,000
Sales Rs. 5,00,000
Profit Rs. 65,000
Variable Cost is 70% of sales.
Saurashtra Co.Ltd. wishes to arrange overdraft facilities with its bankers from
the period August to October 2010 when it will be manufacturing mostly for
stock. Prepare a cash budget for the above period from the following data
given below.
Month
Sales

Purchases

Wages

Mfg. Exp.

Office Exp.

Selling Exp.

June 1,80,000 1,24,800 12,000 3,000 2,000 2,000
July 1,92,000 1,44,000 14,000 4,000 1,000 4,000
August 1,08,000 2,43,000 11,000 3,000 1,500 2,000
September 1,74,000 2,46,000 12,000 4,500 2,000 5,000
October 1,26,000 2,68,000 15,000 5,000 2,500 4,000
November 1,40,000 2,80,000 17,000 5,500 3,000 4,500
December 1,60,000 3,00,000 18,000 6,000 3,000 5,000
Additional Information:
Cash on hand 1-08-2010 Rs. 25,000
50% of credit sales are realized in the month following the sale and the
remaining 50% in the second month following. Creditors are paid in the
month following the month of purchase
Lag in payment of manufacturing expenses half month
Lag in payment of other expenses one month
Q.4 Answer any one of the following:- 14
The standard labour cost per unit of a product manufacturing by Dinesh Ltd. is
stated as follows.
Workers Hours per unit of Output
Hourly Rate
Rs.
Amount
Rs.
X 7 27 189
Y 5 25 125
Total 12 314
The actual cost for producing 500 units is as follows.
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Workers Hours
Hourly Rate
Rs.
Amount
Rs.
X 3700 29 1,07,300
Y 2300 24 55,200
Total 6000 1,62,500
Calculate:
Labour Cost Variance
Labour Rate Variance
Labour Efficiency Variance
Labour Mix Variance
The statement given below the Flexible Budget at 60% capacity of Finolex
Cable Ltd, Pune. Prepare a tabulated statement giving the budget figures at
75% and 90% capacity where no indication has been given. Make your own
classification of expenses between fixed, variable and semi-variable
expenses.
Particular
60% Capacity
Rs.
Prime Cost Material 1,60,000
Depreciation 60,000
Production Wages 40,000
Rent 12,000
Indirect Material 48,000
Insurance of Machinery 12,000
Indirect Labour 40,000
Electric Power 8,000
Repair and Maintenance 20,000
Q.5 Answer any one of the following:- 14
From the following find out;
Profit-volume ratio
Break-even Point
Sales for 40% P/V ratio
Margin of safety from the sales Rs. 3,00,000
Net Profit from the sales of Rs. 3,00,000
Required sales for the net profit of Rs. 70,000
Required sales for the net profit of Rs. 70,000 after tax, the corporation
income tax rate being 60%
Additional sales required to cover an increase of Rs. 3,000 p.a. in the
sales manager's salary
Position of the company for the year 2018
Sales Rs. 2,00,000
Variable Overheads Rs. 1,50,000
Contribution Rs. 50,000
Fixed Overhead Rs. 15,000
Net Profit Rs. 35,000
OR
What is report? State the principles of reporting? Explain the merits and
demerits of report.