FACULTY OF MANAGEMENT
M.B.A. II Semester (CBCS) Examination, May June 2018
Subject: Strategic Management Accounting
Paper MB 205 2
(Open Elective IV)
Time: 3 Hours Max.Marks: 80
Note: Answer all the questions from Part-A and Part-B.
Each question carries 4 marks in Part-A and 12 marks in Part-B.
PART A (5x4 20 Marks)
[Short Answer Type]
1 State assumptions of break even analysis.
2 What is meant by Budget, Budgeting and Budgetary control?
3 Define responsibility accounting and state its features.
4 What is meant by customer account profitability analysis?
5 .State the components in PLC costing.
PART B (5x12 60 Marks)
[Essay Answer Type]
6 Explain the nature and scope of strategic management accounting.
OR
From the following data, find out:
P/v ratio
ii) B/E sales
iii) Profit when sales are Rs. 1,00,000
iv) Sales required to earn a profit of Rs. 20,000 and
Safety margin in two years
Year Sales
Rs.
Profit
Rs.
2016 1,20,000 9,000
2017 1,40,000 13,000
7 Discuss the significance and applicability of Management control and operational
control systems in an organization.
OR
From the following details, calculate LCV, LRPV and variances for the two
departments:
Particulars Department
A B
Actual gross wages Rs. 2,000 Rs.1,800
Standard hours 8000 600
Standard rate purchaser Re 0.30 Re 0.35
Actual hours worked 8200 5800
..2
OU 2260 OU 2260
Code No. 4548

8 Discuss the salient features of cost centre, profit centre and investment centre.
OR
Explain the concept and methods of transfer pricing.
9 A company provides the following data for a year.
Product
Annual
Output
(Units)
Total
Machine
Hours
Total no. of
Purchase
Orders
Total no. of
Setups
X 5,000 20,000 160 20
Y 50,000 1,00,000 384 44
55,000 1,20,000 544 64
The annual overheads are as follows:
Volume related activity costs 5,50,000
Setup related costs 8,20,000
Purchase related costs 6,18,000
19,88,000
Calculate the cost per unit of X and Y using:
Traditional Costing
ii) ABC Analysis.
OR
Describe vital issues in customer costs analysis.
10 Discuss the significance of product life cycle costing in strategic decisions.
OR
Describe the sources of competitor information.