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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.B.A.DEGREE EXAMINATION -BUSINESS ADMINISTRATION
SIXTH SEMESTER APRIL 2018
BU 6606- ACCOUNTING FOR DECISION MAKING
Date: 21-04-2018 Dept. No. Max. 100 Marks
Time: 09:00-12:00
PART A
Answer ALL questions 10 2 20 marks
1. List out any two merits of management accounting.
2. What is flexible budget?
3. What are turnover ratios?
4. What is dividend yield ratio?
5. What is standard cost?
6. Opening stock Rs.29000, Closing stock Rs.31000, Purchases Rs.242000 . Calculate stock turnover ratio.
7. Calculate funds lost in operations:
Net loss for the year 90,000
Dividend received 7,000
Depreciation charged 10,000
Profit on sale of assets 5,000
Refund of tax 2,000
8. Prepare production budget for the quarter ending 31st March 2008.
Budgeted sales for the quarter 40,000 tons
Stock on 31st Dec 2007 8,000
Required stock on 31st March 2008 10,000
9. Ganesh purchased and used 800 tons of a chemical at Rs. 40 per ton where as the standard price fixed was Rs. 48 per ton. Calculate the material price variance.
10. Find out variable cost: Sales Rs. 4,00,000 P/V Ratio 25%.
PART B
Answer any FOUR questions 4 10 40 marks
11. What is the scope of management accounting?
12. What is ratio analysis? What are the limitations of ratio analysis.
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13. Explain the advantages of standard costing. 14. From the following data, calculate: Break-even point in terms of sales value and in units. Number of units that must be sold to earn a profit of Rs. 90,000. Fixed Factory Overheads Cost 60,000 Fixed Selling Overheads Cost 12,000 Variable Manufacturing Cost per unit 12 Variable Selling Cost per unit 3 Selling price per unit 24
15. The expenses budgeted for production of 1,000 units in a factory are furnished below: Particulars Per Unit
Material Cost 700
Labour Cost 250
Variable overheads 200
Selling expenses fixed) 130
Administrative expenses (Rs. 2,00,000) 200

Total Cost 1,480

Prepare a budget for production of 600 units and 800 units assuming administrative
expenses are rigid for all level of production.
16. For a particular job, the data are given below:
Standard hours 150 hours Standard rate of wages per hour 5 Actual hours 100 hours Actual rate of wages per hour 6
Calculate:
Labour cost variance Labour rate variance
Labourefficiency variance.
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17. Ramco Cements presents the following information and you are required to calculate funds from operations:
Profit and Loss Account
To Operation expenses
To Depreciation
To loss on sale of building
To Advertisement Suspense account
To discount allowed
To discount on issue of shares written off
To Goodwill written off
To Net profit
Rs.
1,00,000
40,000
10,000
5,000
500
500
12000
52000
By Gross Profit
By Gain on sale of plant
Rs.
2,00,000
20,000
2,20,000
2,20,000
PART C
Answer any TWO questions 2 20 40 marks
18. Differentiate between Financial Accounting and Management Accounting.
19. From the following information relating to A Ltd., prepare Funds Flow Statement:
Rs.
2003
Rs.
2004
Rs.
2003
Rs.
2004
Rs.
Share Capital
300
400
Cash
30
90
Reserve
100
50
Accounts Receivable
105
150
Retained earnings
30
60
Inventories
150
195
Accounts Payable
45
135
Fixed Assets
190
210
475
645
475
645
Additional Information:
The company issue bonus shares for Rs. 50,000 and for cash Rs. 50,000
Depreciation written off during the year Rs. 15,000.
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20. The following is the Balance sheet of a company as on 31st March:
Liabilities
Rs.
Assets
Rs.
Share Capital
2,00,000
Land Buildings
1,40,000
Profit Loss Account
30,000
Plant Machinery
3,50,000
General Reserve
40,000
Stock
2,00,000
12% Debentures
4,20,000
Sundry Debtors
1,00,000
Sundry Creditors
1,00,000
Bills Receivable
10,000
Bills Payable
50,000
Cash at bank
40,000
8,40,000
8,40,000
Calculate: Current Ratio Quick ratio Inventory to working capital Debt to equity ratio Proprietary Ratio Capital Gearing ratio Current assets to Fixed assets
21. A manufacturing concern, which has adopted standard costing, furnished the following information:
Standard Material for 70 kg finished product: 100 kg.
Price of materials: Re. 1 per kg.
Actual Output: 2,10,000 kg.
Material used: 2,80,000 kg.
Cost of material: Rs. 2,52,000.
Calculate: Material Usage Variance Material Price Variance Material Cost Variance