Note Attempt any four questions.
All questions carry 25 marks.
Q. 1 A productive unit provide you following data.
Cost of production per unit.
Direct Material 30
Direct Wages 20
Variable overheads 50
Selling price per unit Rs. 200
Fixed overhead Rs. 200000.
Calculate
BEP (Units sales value)

P.V.R.
Sales required to earn profit of Rs. 100000
Profit or loss at sales of Rs. 25,00,000.
Profit or loss at sales of Rs. 2,50,000.
Find out BEP if fixed overheads are worth Rs. 300000.
Q. 2 Standard material cost for 100 kg of product x are as under
A. 80 kg Rs. 10 per kg
B. 70 kg Rs. 20 per kg
Actual data for production of 500 kg are as under
A. 450 kg Rs. 12 per kg.
B. 450 kg Rs. 25 per kg.
Calculate
Material cost variance.

Material price variance.

Material usage variance.

Material mix variance.
Q. 3 Explain briefly
V
arious types of responsibility centre.
Explain any two method of accounting of changing.
Q. 4 The project listed below are to be ranked in order to
pay back period

Net present value 10%.
Project
Project
NET CASH FLOW
Cost
Year 01
02
03
A
80000
40000
40000
40000
B
80000
60000
40000
20000
C
80000
20000
40000
60000
D
80000
30000
100000

Present Value 10%
80000
.909
.826
.751
(P.T.O)
Code 200002 Accounting for Managerial Decisions M.Com. Sem II Marks 100
(Repeater Fresh) Centre for Distance Education Exam 26/04/2017
Code 200002 Accounting for Managerial Decisions
Q. 5 Due to industrial depression a plant is running at 50% of its capacity. The following data
are available.
Direct material Per unit Rs. 06
Direct wages Per unit Rs. 04
Variable overheads Per unit Rs. 05
Fixed overheads Per unit Rs. 05
Production 10000 units
Selling price per unit Rs. 18.
An exportes often to buy 10000 units at the sale of Rs. 17 per unit and management hesitates to accept the offer for fear of increasing its already lossess.
You are required to advise whether the company should accept or decline? Why?
Write a note on inflation accounting.