Total No. of Questions—9] [Total No. of Printed Pages—3
Seat
No. [5368]-13
M.M.M. Semester) EXAMINATION, 2018
103 FUNDAMENTALS OF MANAGEMENT ACCOUNTING
(2008 PATTERN)
Time Three Hours Maximum Marks 70
N.B. Question No. 1 is compulsory and carries 10 marks.
(ii Attempt any two questions from each Section and carries
15 marks.
(iii Use of non-programmable calculator is allowed.
1. Defferentiate how Management Accounting is differs from Financial
as well as Cost Accounting
Section I
2. What do you mean by Budget and Budgetary Control What
are the advantages of Budgetary Control as a cost control
technique What are the prerequisites for the successful implementation
of Budgetary Control System
3. "Standards are basis for a proper managerial control of manufacturing
operations". Define standard cost and explain above statement.
4. Explain the term underabsorption and overabsorption of overheads.
Explain any three methods of absorbing production overheads into
the cost of production.
P.T.O.
[5368]-13 2
5. Write short notes on
Opportunity cost
ABC Analysis
Break-Even Analysis.
Section II
6. The following transactions have taken place in respect of a material
during March 2007
Date
1 Opening Balance 500 units Rs.6 per unit
5 Purchased 100 units Rs.7 per unit
7 Issued 400 units
9 Purchased 300 units Rs.8 per unit
19 Issued 250 units
22 Issued 50 units
25 Purchased 300 units Rs.7.50 per unit
30 Issued 250 units.
Prepare the Stores Ledger assuming that the issues are valued on
FIFO and LIFO.
7. Profit and sales for the year 2007 are Rs.18,000 and Rs.2,40,000
respectively. In 2008, the sales increased by Rs.40,000 and profit
by Rs.8,000
You are required to calculate
P/V Ratio
Sales required to achieve a profit of Rs.1,00,000
Sales at Break-Even Point.
[5368]-13 3 P.T.O.
8. Prepare the Flexible Budget for overheads on the basis of data
given below
Ascertain the overheads rates at 60% and 70% capacity.
At 60% capacity
Variable Overheads
Indirect Material 6,000
Indirect Labour 18,000
Semi-Variable Overheads
Electricity
fixed, 60% variable) 30,000
Repairs and Maintenance
fixed, 20% variable) 3,000
Fixed Overheads
Depreciation 16,500
Insurance 4,500
Salaries 15,000
Total Overheads 93,000
Estimated Direct Labour Hours 1,86,000
9. Product Standard Actual
Qty. Sale Price Total Qty. Sale Price Total
Rs. Rs. Rs. Rs.
A 500 5 2,500 500 5.40 2,700
B 400 6 2,400 600 5.50 3,300
C 300 7 2,100 400 7.50 3,000
1,200 7,000 1,500 9,000
Calculate the Sales Variances.