FACULTY OF MANAGEMENT
M.B.A. III-Semester Examination, May June 2016
Subject: Strategic Management Accounting
Course No 3.4.2 Elective II (Finance)
Time 3 Hours Max. Marks: 80
Note: Answer ALL the questions.
Part A (10x2=20 Marks)
(Short Answer Type)
1 Write short notes on the following.
Management control system
Decision making process
Budget and Budgetory control
Objectives of standard costing
Investment centre
Performance reports
Distinguish between product and services
Activity cost drivers
Sources for competitor information
Target costing
Part B (5x12=60 Marks)
(Essay Answer Type)
2 Distinguish between Financial Accounting and Management Accounting system.
OR
From the following details, you are required to calculate
P/V raio, B/E sales and M/S sales of each company
State value of sales to earn a profit of Rs.30,000
State which company is likely to earn greater
Profits in the conditions of
Heavy demand for the product
Low demand for the product
Details/Particulars P Ltd. Q Ltd.
Sales 3,00,000 3,00,000
Less: VC 2,00,000 2,25,000
FC 50,000 2,50,000 25,000 2,50,000
Profit 50,000 50,000
3 Discuss the applicability and relative merits of Management Control And Operational
Control System.
OR
..2
OU 2260 OU 2260
Code No. 1051
..2..
Calculate the labour variances from the following data:
Standard wages;
Grade X 90 workers at Rs. 2 per hour
Grade Y 60 workers at Rs. 3 per hour
Actual wages:
Grade X 80 workers at Rs. 2.50 per hour
Grade Y 70 workers at Rs. 2.00 per hour
Budgeted hours 10000 Actual hours 900
Budgeted gross production 5000 units
Standard loss 20% Actual loss 900 units
4 Define Responsibility Accounting and state resources for establishment of
Responsibility centres in an organization.
OR
A company has 10 cars in operation. The budget for the transport department based
on 25000 km of run for a month is Rs.87500, out of which a sum of Rs.25000 is
fixed.
During the last month, the total kilometers by all the 10 cars were 22400 and the
costs incurred were Rs.83,150. The cost of hiring a car would have been
Rs.4 per km.
Evaluate the performance of the transport department on the basis of cost centre
profit centre.
5 Define ABC approach of costing and describe the features of ABC system.
OR
Explain the significance and applicability of CAP analysis.
6 Describe the assessment of cost and prices in various stages of PLC.
OR
Discuss the concept and importance of competitor accounting.