M.Com (Semester IV) (CBCS) Examination, 2017
MANAGEMENT ACCOUNTING
Day Date: Monday, 24-04-2017 Max. Marks: 70
Time: 02.30 PM to 05.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the correct alternatives: 14
Marginal costing is a technique of
Management Financial
Cost control All of the above
Profit volume Ratio shows the relationship between contribution and

Stock Purchase Sales None of the above
The quantitative expression of management objective is a
Management Chart Budget
Organization Chart All of the above
Which of the following objectives is a purpose of preparing a budget?
To communicate the companies plans throughout the organization.
To control income and expenditure
To provide basis for comparison
All of the above
Which of the following is true at Break Even Point?
Sales Revenue variable cost
Sales Revenue Total cost variable cost
Contribution Fixed cost
Profit Fixed cost variable cost
Which of the following is an example of qualitative information?
Demand will be 1000 units in next year.
Output last month was 5750 units
Scrap level are presently 5.7% of input.
None of the above
Variable cost plus fixed cost plus or minus profit or loss is equal to
Sales Purchases P/V Ratio Contribution
The variance arises due to difference between the number of
working days in the budgeted period and the number of actual working days.
Idle Time Variable overhead
Material usage Calender
Page 1 of 3
SLR-Q-91
If P/V ratio is 20% and fixed cost Rs.100000 then break-even sales are

500000 50000 200000 150000
10) A is the difference between the actual cost and standard cost.
Profit Fixed cost BEP sales Variance
11) When actual cost incurred is less than the standard cost, the deviation is
known as variance.
Favorable Unfavorable
Adverse No variance
12) (standard time Actual time) X standard rate= variance.
Labour cost Labour efficiency
Calendar Labour mix
13) cost is the part of total cost which change or varies directly in
proportion with volume.
Fixed Capital Differential Variable
14) The means organized method of providing each manager with all
the data and only those data which he needs for his decisions.
Management Reporting
Management Accounting
Management Information Technology
Management Information System
Q.2 Write short notes on: 14
Management Information System
Break Even Analysis
Q.3 Two competing companies Hero Ltd and Zero Ltd, Sell the same type of
Product in the same market, their for casted Profit and Loss Account for
the year ending 31st March 2016 are as follows:
14
Hero Ltd Zero Ltd
Rs Rs Rs Rs
Sales 5,00,000 5,00,000
Less: Variable cost of
sales
4,000,00 3,00,000
Fixed Cost 50,000 4,50,000 150,000 450000
For casted net profit
before tax
50,000 50,000
You are required to state which company is likely to earn greater profit in
conditions of:
Low demand
High demand
Page 2 of 3
SLR-Q-91
Gemini Chemical Industries provide the following information from their
records:
For marketing 10kgs of GEMCO, the standard material requirement is
Material Qty
Kg
Rate per kg
Rs.
A 8 6
B 4 4
During April 2016, 1000 kgs of GEMCO were produced the actual
consumption of material is as under:
Material Qty
Kg
Rate per kg
Rs.
A 750 7
B 500 5
Calculate:
Material cost variance
Material price variance
Material usage variance
Q.4 A factor is currently running at 50% Capacity and Produces 5000 units at a
cost of Rs.90 per unit as per details below:
14
Rs.
Material 50
Labour 15
Factory O/H 15( Rs.6 fixed)
Administrative
Overheads
10 (Rs. 5 fixed)
The current selling price is Rs.100 per unit. At 60% working material cost
per unit increases by and selling price per unit falls by 2%.
At 80% working, material cost per unit increases by and selling price
per unit falls by
Estimate Profits of the factory at 60% and 80% working and offer your
comments.
OR
Define concept of budget and explain various types of budgets
Q.5 ABC Ltd gives you following details relating to the Product during the
month of March,2016. You are required to compute the material and labour
variances and reconcile the standard and actual cost.
Standard Cost per unit:
Material 50 kg Rs.40 per kg.
Labour 400 hours Rs. 1.04 per hour
Actual cost for the month:
Material 4900 kgs Rs.42 per kg
Labour 30600 hours Rs.1.10 per hour
Actual Production 100 units
14
What is Material Costing? What benefits are to be gained from marginal
costing?