M.B.A. (Part II) (Semester III) (Old CBCS) Examination, 2018
paper XVIII management acounting
Day and Date Monday, 10-12-2018, -2018 Max. Marks 70
Time 10.30 a.m. to 1.00 p.m..
Instructions All questions are compulsory.
Figures to the right indicate full marks.
1. Choose the correct alternative 14
is the first step of budgetary system and all other budgets
depends on it .
Cost budget Sales budget
Production budget None of the above
Management accounting is related with
The problem of choice making
Recording of transactions
Cause and effect relationships
A and B B and C A and C B and C
On the basis of information contained in the reports, the managerial reporting
can be divided into
Operating reports and financial reports
Trend reports and analytical reports
Individual activity reports and joint activity reports
Internal reports and external reports
contains the picture of total plans during the budget period and it
comprises information relating to sales, profit, cost, production etc.
Master budget Zero based budget
Cost budget Sales budget
is stated as a budget which is made to change as per the levels
of activity attained.
Fixed budget Flexible budget
Both a and b None of the above
Cost audit is a verification of cost records to estimate the efficiency
of a business.
External Internal
Both internal and external None of the above
Management audit is useful for
Suggestion for targets
Assistance to management
Good staff relationship
All of the above
branch of accounting emphasis more on Planning, Controlling
and decision making to maximize profit.
Financial accounting Management accounting
Both a and b Cost accounting
is/are limitations of management accounting.
B ased on historical data
Useful to external users
Ascertain financial position of business
All of the above
10) The difference between actual cost and standard cost is known as
Variance Profit
Margin Differential cost
11) variance is always unfavorable.
Capacity variance Calendar variance
Idle time variance Profit variance
12) When fixed cost is Rs. and P/V ratio is 50% the break even point
will be
20,000 15,000 5,000 18,000
13) Break even sales are 1000 units, fixed cost Rs. contribution per unit
is Rs.
2 3 0.50 4
14) is type/types of information report.
Trend reports Analytical reports
A ctivity reports All of the above
Set P
2. Attempt the following 14
Reporting need at different levels of management. 7
Objectives of audit. 7
3. Attempt the following 14
From the following data, prepare a production budget for the big deal Co.
Ltd. 7
Product As on 1st Jan. 2015 Units As on 30th June 2015 Units
A 1,00,000 1,40,000
b 1,10,000 1,00,000
C 1,60,000 1,80,000
Requirement to fulfill sales programme
A 12,00,000 Units
B 10,00,000 Units
C 16,00,000 Units
Normal loss in production on sales for A and B and for C 5%.
The following costs and sales of a manufacturing company for the first half
and the second half of 2008 2009 are given. 7
Particulars First Half Second Half
Sales 24,00,000 30,00,000
Total Cost 21,80,000 26,00,000
Calculate
PV Ratio
Annual fixed cost
B reak even point (in sales)
Margin of safety as percentage of sales.
4. Calculate 14
Total overhead cost variance.
Variable Overhead Cost Variance.
Fixed Overhead Cost Variance.
Fixed Overhead Expenditure Variance
Fixed Overhead Volume Variance
Calendar Variance.
Capacity Variance.
Particulars Budget Actual
No. of working days in month 20 22
Monthly Output (in units) 12000 13000
Fixed Overheads 36000 37500
Variable Overheads 84000 85000
Capacity 100% 102%
O R
4. What is Management Accounting Explain the difference between Management
Accounting and Financial Accounting. 14
5. For the production of 10000 units of a product, the following are the budgeted
expenses
Rs. (per unit)
Direct material 30
Direct Labour 15
Variable overhead 12.50
Fixed overhead (Rs. 75,000) 7.50
Variable expenses (direct) 2.50
Selling expenses fixed 7.50
Administration expenses (Rs. 25,000 rigid for all production levels) 2.50
Distribution expenses fixed) 2.50
Total cost of sale per unit 80.00
Prepare a budget for production of 12,000, 14,000 and 16,000 units showing
distinctly marginal cost and total cost. 14