MBA (Part II) (Semester III) Examination, 2017
MANAGEMENT ACCOUNTING (Paper XVIII)
Day and Date Friday, 5-5-2017 Total Marks 70
Time 10.30 a.m. to 1.30 p.m.
Instructions Q.No. 1 is compulsory.
Attempt any two questions from Q. No. 2 to Q. No 4.
Attempt any two questions from Q. No. 5 to Q. No 7.
Figures to the right indicate full marks.
1. A department of X attains sale of Rs. 6,00,000 at 80% of the normal capacity and
its expenses are given below
Particulars
Administration Expenses
Office Salaries
General expenses
Depreciation
Rates Takes
90,000
of Sales
7,500
8,750
Selling Costs
Salaries
Travelling Expenses
Sales Office
Other expenses
of Sales
of Sales
of Sales
of Sales
Distribution costs
Wages
Rent
Other Expenses
15,000
of Sales
of Sales
Draw up a flexible budget for administration, selling and distribution cost
operating at 90% and 100% and 110% of normal capacity.
P.T.O.
Seat
No.
35
2. The sales and profit during the two periods are given as follows
Year Sales Profit
2004 20,00,000 2,00,000
2005 30,00,000 4,00,000
Calculate
P/V Ratio
Fixed Cost
BEP
Sales to earn a profit of Rs.
Profit when sales are Rs.
Margin of Safety at a profit of Rs.
Variable cost in 2005.
3. Attempt (any 2).
Master Budget.
Reporting needs at different levels on management.
Activity Based Costing.
4. The standard cost card for a product shows
Material Cost 2 Kg. at Rs. 2.50 each Rs. 5 Per Unit.
Wages 2 hours at Rs. 10 each Rs. 20 per unit.
The actual which have emerged from business operations are as follows
Production 8,000 units
Material consumed 16,500 kg. at Rs. 2.40 each Rs.
Wages paid 18,000 hours at Rs. 8 each Rs. 1,44,000
Calculate
Material cost variance.
Material price variance.
Material usage variance.
Labour cost variance.
Labour rate variance.
Labour efficiency variance.
5. Explain the meaning of Management Control System. Explain the implementation
of Management Control System in Service organization and Non-profit
organization.
6. ABC Co. manufacturing two products, furnishes the following data for the year
2015.
Product
Annual Output
(Units)
Total Machine
Hours
Total number of
purchase order
Total number
of set ups
A 5,000 20,000 160 20
B 60,000 1,20,000 384 44
The annual overheads are as under
Volume related activity cost 5,50,000
Set-up related costs 8,20,000
Purchase related costs 6,18,000
You are required to calculate the cost per unit of each Product A and B based on
Traditional method of charging overheads.
Activity Based Costing Method.
7. Explain the meaning of Audit. Explain the internal audit and financial audit in
detail.