M.B.A. (Part II) (Semester III) Examination, 2016
MANAGEMENT ACCOUNTING (Paper XVIII)
Day and Date Saturday, 17-12-2016 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.
1. A Manufacturing Company is expected to have Rs. 25,000 in its bank account
on 1-4-1996. Prepare a cash Budget for April, May, June 1996 from the
following estimates. 14
Month Sales Purchases Salary Administrative Selling
Expenses Expenses
February 50,000 30,000 6,000 9,000 3,000
March 56,000 32,000 6,500 9,500 3,000
April 60,000 35,000 7,000 10,000 3,500
May 80,000 40,000 9,000 11,500 4,500
June 90,000 40,000 9,500 12,500 4,500
Other Information
20% sales on cash. Balance on credit and the amount to be collected in the
next month.
Suppliers are paid second month following the purchases.
Workers salary paid in the same month.
Administrative and selling expenses are paid in the next month.
Dividend of Rs. 10,000 and bonus to workers of Rs. 15,000 are to be paid in
May.
Income tax of Rs. 25,000 to be paid in June.
P.T.O.
Seat
No.
SLR-T 43
2. From the following information find out 7
Contribution
B.E.P. in units
Margin of Safety
Profit
Sales to earn a profit of Rs. 6,000
Total fixed cost Rs. 4,500
Total Variable Costs Rs. 7,500
Total Sales Rs. 15,000
Number of Units sold 5,000
Functions of Management Accounting. 7
3. Write short notes (any two) 14
Differentiate between cost accounting and financial accounting.
Types of Audit
Cost Drivers
4. What are the objectives to reporting to Management Explain different types of
Reports. 14
5. The standard materials cost to produce a tone of chemical X is 14
300 kg of material A Rs. 10 per kg
400 kg of material B Rs. 5 per kg
500 kg of material C Rs. 6 per kg
During a period, 100 tonnes of mixture X was produced from the usage of
35 tonnes of material A at a cost of Rs. 9,000 per tonne
42 tonnes of material B at a cost of Rs. 6,000 per tonne
53 tonnes of material C at a cost of Rs. 7,000 per tonne
Calculate Material Price Variance, Material Usage Variance and Material Mix
Variances.
6. ABZ Co. produces three products B and C for which the standard cost and
output are as follows 14
Products/Particulars A B C
Output (Units) 10,000 20,000 30,000
Direct Material Per Unit Rs. 50 Rs. 40 Rs. 32
Direct Labour Per Unit Rs. 30 Rs. 40 Rs. 48
Labour Hours Per Unit 3 4 5
Machine Hour Per Unit 4 4 7
No. of Purchases requisition 600 900 1,000
No. of machine set ups 120 130 150
Production overheads split by depts.-Dept. X Rs. 12,00,000, Dept. Y-Rs. 15,00,000
total Rs. 27,00,000.
Dept. X is labour intensive and Dept. Y is machine intensive.
Total labour hours in dept. Total machine hours in dept. Y 5,00,000
Production overhead split by activity Receiving and inspection Rs. 14,00,000
Production scheduling set up Rs. 13,00,000
No. of batch received/inspected 2,500, No. of batches for scheduling/set up 400.
You are required to prepare cost statement under Activity Based Costing
Method.
7. What is Management Control System Explain the Management Control System
in Financial Service Organisation. 14