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    Management Accounting Set 1 Fin

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    Ãrhan Khañ
    This document contains a sample exam for a Management Accounting course. It includes 4 questions, with multiple parts to each question. Question 1 deals with costing methods like traditional and activity-based costing. It provides data on production volumes and overhead costs for two products. Question 2 differentiates between controllable and uncontrollable costs, defines standard costing and its relationship to budgetary control, and explains traditional and activity-based costing methods. Question 3 provides standard cost and production/sales data for two years, and asks to prepare income statements and evaluate divisions for additional investment. Question 4 defines marginal costing and its importance, distinguishes between budgets and forecasts, and explains zero-based budgeting and its advantages over traditional

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    Management Accounting Set 1 Fin

    Uploaded by

    Ãrhan Khañ
    18 views3 pages
    This document contains a sample exam for a Management Accounting course. It includes 4 questions, with multiple parts to each question. Question 1 deals with costing methods like traditional and activity-based costing. It provides data on production volumes and overhead costs for two products. Question 2 differentiates between controllable and uncontrollable costs, defines standard costing and its relationship to budgetary control, and explains traditional and activity-based costing methods. Question 3 provides standard cost and production/sales data for two years, and asks to prepare income statements and evaluate divisions for additional investment. Question 4 defines marginal costing and its importance, distinguishes between budgets and forecasts, and explains zero-based budgeting and its advantages over traditional

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    This document contains a sample exam for a Management Accounting course. It includes 4 questions, with multiple parts to each question. Question 1 deals with costing methods like traditional and activity-based costing. It provides data on production volumes and overhead costs for two products. Question 2 differentiates between controllable and uncontrollable costs, defines standard costing and its relationship to budgetary control, and explains traditional and activity-based costing methods. Question 3 provides standard cost and production/sales data for two years, and asks to prepare income statements and evaluate divisions for additional investment. Question 4 defines marginal costing and its importance, distinguishes between budgets and forecasts, and explains zero-based budgeting and its advantages over traditional

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    18 views3 pages

    Management Accounting Set 1 Fin

    Uploaded by

    Ãrhan Khañ
    This document contains a sample exam for a Management Accounting course. It includes 4 questions, with multiple parts to each question. Question 1 deals with costing methods like traditional and activity-based costing. It provides data on production volumes and overhead costs for two products. Question 2 differentiates between controllable and uncontrollable costs, defines standard costing and its relationship to budgetary control, and explains traditional and activity-based costing methods. Question 3 provides standard cost and production/sales data for two years, and asks to prepare income statements and evaluate divisions for additional investment. Question 4 defines marginal costing and its importance, distinguishes between budgets and forecasts, and explains zero-based budgeting and its advantages over traditional

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    Download as docx, pdf, or txt
    of 3

    Roll No:

    Final Examination 2021-22


    Management Accounting

    [Time: 2 Hours] [Maximum Marks : 60]

    Note: Attempt all Questions. Attempt any TWO PARTS from each question.
    All questions carry equal marks
    Q 1(A) A company manufacturing two products furnishes the following data for a year:
    Product Annual Output Total Machine Hrs No. of Purchase No. of Setups
    (Units) orders
    A 5000 20,000 160 20
    B 60,000 1,20,000 384 44
    Annual overheads are as under :
    Volume related activity costs 5,50,000
    Set up related costs 8,20,000
    Purchase related costs 6,18,000
    You are required to calculate the cost per unit of each product A and B based on:
    (i) Traditional method (ii) Activity based costing method

    (B) Standard material and standard price for manufacturing one unit of a product is given below:

    (C) The sales turnover and profit of M/s Gupta Ltd during the two year 2014 and 2015 were as follows:
    Year Sales Profit
    2014 4,50,000 60,000
    2015 5,10,000 75,000
    You are required to calculate:
    (i) Profit-Volume Ratio
    (ii) Sales at which company will neither lose nor gain anything
    (iii) Sales required to earn a profit of Rs 1,20,000
    (iv) The profit made when sales are Rs 7,50,000.

    Q 2 (A) Differentiate between controllable and uncontrollable costs with the help of suitable examples.
    (B) What is standard costing? Bring out clearly the relationship between standard costing and budgetary
    control.
    (C) How is the Traditional method of charging overheads different from Activity based costing method?
    Also explain the steps involved in Activity based costing method.

    Q 3 (A) Top class company supplies you the following standard cost per unit for one of its products:
    Direct Material Rs 1.60
    Direct Labour Rs 1.50
    Variable factory overhead Rs 1.20
    Fixed factory overhead Rs 3.00
    Production at normal capacity is 2,00,000. Variable selling and administration overhead per unit is Re 0.50
    and fixed selling and administration overhead are Rs 75,000 per year. Production and sales data for the year
    2010 and 2011 are as follows:
    Units produced in the year 2010 2,00,000
    Units sold in the year 2010 1,60,000
    Inventory 31st Dec 2010 68,000
    Units produced in the year 2011 1,50,000
    Units sold in the year 2011 1,80,000
    Selling price in each year was Rs 10.50. Prepare Income statement for the 2 years under Absorption Costing.

    (B) Infra India Ltd has three divisions. It is considering to make additional investment in one of these
    divisions. The relevant information is given below:
    Division X Division Y Division Z
    Additional Information 5,00,000 5,00,000 5,00,000
    Net profit on additional investment 70,000 65,000 85,000
    Current ROI 15% 16 % 14%
    The cost of capital is 12%. In which division should the investment be made? (According to ROI and RI
    method ).
    (C) The following costs and sales of a manufacturing company for the first half and second half 0f 2018-19
    are given:
    First half Second half
    Sales 24,00,000 30,00,000
    Total costs 21,80,000 26,00,000
    You are required to determine:
    (i) Contribution/Sales ratio
    (ii) Annual fixed costs
    (iii) Break even point
    (iv) Margin of Safety

    Q 4 (A) Explain the technique of marginal costing and state its importance in decision making.
    (B) Distinguish between budget and forecast. Write explanatory note on functions of budgeting.
    (C) What is zero base budgeting? What are the advantages of zero base over traditional approach?
    Signature of moderation committee

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