Loyola College B.B.A. Business Administration April 2011 Management Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

SIXTH SEMESTER – APRIL 2011

BU 6603/BU 6600 – MANAGEMENT ACCOUNTING

 

 

 

Date : 09-04-2011              Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

PART – A

     ANSWER ALL THE QUESTIONS:                                                                                                 (10 x 2 = 20 marks)

 

  1. What is Management Accounting?
  2. What is ratio analysis?
  3. What is Cash Budget?
  4. What is fund flow statement?
  5. What is contribution?
  6. Give the formula for Earnings Per Share.
  7. What is direct labour cost variance?
  8. Ganesh purchased and used 800 tons of a chemical at Rs. 40 per ton whereas the standard price fixed was Rs.48 per ton. Calculate material price variance.
  9. A company shows the trading results for two periods.
Period Sales

Rs.

Profit

Rs.

1 10,000    400
2 20,000 1,000

Calculate profit volume ratio.

 

  1. From the following information, calculate Fixed overhead

cost variance.

  Standard Actual
Production in units 4,000 3,800
Fixed overheads Rs.40,000 Rs.39,000

 

PART – B

ANSWER ANY FIVE QUESTIONS:                                                                                   (5  x 8 = 40 marks)

  1. Explain the functions of Management Accounting.
  2. You are required to prepare a production budget for the half year ending June 2000 from the following information:
Product Budgeted sales quantity Actual stock on

31-12-99

Desired stock on

30-6-2000

  Units Units Units
S 20,000 4,000 5,000
T 50,000 6,000 10,000

 

  1. Find out fixed assets and gross profit from the following information:

Sales  Rs. 10,00,000

Gross profit ratio 25%

Fixed assets turnover ratio (on cost of sales) 5 times.

 

  1. Find out the funds from operations from the details given below:
  Rs.
Net profit for the year 2006-2007 95,000
Depreciation charged on Fixed assets 42,000
Profit on Sale of Long term Investments included in the P&L A/C 13,000
Goodwill written off 20,000

 

  1. You are asked to compile a working capital statement from the following details:
Particulars 1-1-1999

Rs.

31-12-1999

Rs.

8% Debentures 40,000 40,000
Outstanding rent 8,000 12,000
Cash in hand 4,000 8,000
Cash at bank 12,000 15,000
Accounts payable 20,000 26,000
Machinery 25,000 16,000
Accounts receivable 30,000 34,000
Prepaid commission 4,000
Inventories 22,000 27,000
Share premium 15,000 15,000
Equity share capital 50,000 50,000

 

  1. What are the advantages of ratios?

 

  1. From the following information relating to Palani Bros. Ltd., you are required to find out
  • P/V Ratio (b) Break even point (c) Profit (d) Margin of safety (e) Volume of sales to earn profit of Rs.6,000.

Rs.

Total fixed costs                                4,500

Total variables costs                                      7,500

Total sales                                      15,000

 

 

  1. Calculate material cost variance, material price variance and material usage variance from the following data:

Standard                                 Actual

Quantity                                 400 kgs                                   460 kgs

Price                                     Rs.2 per kg                            Rs. 1.5 per kg

Value                                    Rs. 800                                   Rs. 690

 

PART – C

ANSWER ANY TWO QUESTIONS:                                                                                          (2 x 20 = 40 marks)

 

  1. Kunal Products produces and sells a product for which total capacity of 2,000 units exists.

The following expenses are for the production of 1,000 units of the product which is sold at Rs. 130 per unit.

Per Unit

Rs.

Direct materials                                                              20

Direct Wages                                                                  30

Administration overheads (constant)                              20

Selling expenses (50% fixed)                                         10

Distribution expenses (25% fixed)                                  20

100

You are required to prepare a flexible budget for the production and sale of 1,200 units, 1,600

units and 2,000 units, showing clearly the marginal (variable) cost and total cost at each level.

 

  1. The following is the Comparative Balance Sheets of Pratima & Co.Ltd. as on 30th June 1987 and 30th June 1988.

Balance Sheet

Liabilities 30-6-1987

Rs.

30-6-1988

Rs.

Assets 30-6-1987

Rs.

30-6-1988

Rs.

Share capital 1,80,000 2,00,000 Goodwill 24,000 20,000
Reserve Fund 28,000 36,000 Buildings 80,000 72,000
P&L A/c 39,000 24,000 Machinery 74,000 72,000
Trade Creditors 16,000 10,800 Investments 20,000 22,000
Bank overdraft 12,400 2,600 Inventories 60,000 50,800
Provision for Taxation 32,000 34,000 Debtors 40,000 44,400
Provision for doubtful debts 3,800 4,200 Cash 13,200 30,400
  3,11,200 3,11,600   3,11,200 3,11,600

 

 

Additional Information:

  • Depreciation charged on machinery Rs. 10,000 and on buildings Rs. 8,000.
  • Investments sold during the year Rs. 3,000.
  • 15,000 interim dividend paid during January 1988.
  • Taxes paid during the year Rs. 30,000.

Prepare (a) a statement of changes in working capital.

(b) a funds flow statement.

 

  1. A company manufactures a particular product the standard material cost of which is Rs.10 per unit. The following information is obtained from the cost records.
  • Standard mix

Material         Quantity           Rate                    Amount

Units              Rs.                        Rs.

A                    70                  10                         700

B                    30                    5                         150

100                                              850

Loss 15%               15                                                 

85                                                850

 

  • Actual results for January 1987:

 

Material         Quantity           Rate                     Amount

Units              Rs.                         Rs.

A                    400                 11                          4,400

B                    200                   6                          1,200

600                                                5,600

Loss 10%                60                                                  Nil

540                                                5,600

 

Calculate: (1) Material price variance (2) Material mix variance (3) Material usage variance (4) Material yield variance (5) Material cost variance.

 

 

 

 

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