DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, DECEMBER 2017.
Second Semester
COST AND MANAGEMENT ACCOUNTING
(Upto 2012-2013 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
SECTION A — X 8 40 marks)
Answer any FIVE questions.
1. Describe the objectives of cost accounting.
2. Write a brief note on Job Costing and Batch Costing.
3. State the importance of cost volume profit analysis.
4. From the following particulars, ascertain Break Even
Sales and PV ratio.
Rs.
Sales 4,00,000
Fixed Cost 1,80,000
Variable Cost 2,50,000
Sub. Code
25
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5. Calculate the Current Ratio and Acid Test Ratio from the
following information.
Rs. Rs.
Stock 25,000 Debtors 10,000
Cash at bank 5,000 Creditors 8,000
Bills payable 2,000 Provision for taxes 5,000
Bank over draft 5,000
6. Prepare a statement showing the changes in working
capital with the given Balance sheets of a company
Liabilities 31.12.03 31.12.04 Assets 31.12.03 31.12.04
Accounts Payable 7,000 4,500 Cash 3,000 4,700
Capital 20,000 25,000 Accounts 12,000 11,500
Retained earnings 1,000 2,300 Receivable
Land 5,000 6,600
Stock 8,000 9,000
28,000 31,000 28,000 31,000
7. Jain Ltd. made a net profit of Rs. 00,000 for the year
ended 31st December 2004
Loss on sale of machinery Rs. 10,000
Depreciation on Building Rs. 4,000
Depreciation on Machinery Rs. 5,000
Preliminary Expenses written off Rs. 5,000
Provision for taxation Rs. 10,000
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Goodwill written off Rs. 5,000
Gain on sale of buildings Rs. 8,000
Find out cash from operations.
8. State the uses of cash flow statement
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Describe the various classification of cost.
10. State the various tools and techniques used in
management accounting.
11. Product X is obtained after it passes through three
district process. The following information is available for
the operation:
Process
Total I II III
Rs. Rs. Rs. Rs.
Materials 5,625 2,600 2,000 1,025
Direct wages 7,330 2,250 3,680 1,400
Production over heads 7,330
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500 units Rs.4 per unit were introduced in process I.
Production overheads are absorbed as a percentage of
direct wages.
The actual output and normal loss of the respective
process are:
Output Units Normal loss on input Value of
scrap unit
Process I 450 10% Rs.2
Process II 340 20% Rs. 4
Process III 270 25% Rs. 5
There is no stock or work in progress in any process
Show
Process account
Abnormal loss and abnormal gain accounts.
12. From the following, find out
Profit volume ratio
Break even point
Sales for 40% P/V ratio
Margin of safety from the sales Rs. 3,00,000
Net profit from the sales of Rs. 3,00,000.
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Rs.
Sales 2,00,000
Variable overheads 1,50,000
Contribution 50,000
Fixed overheads 15,000
Net profit 35,000
13. From the following information make out a statement of
proprietors funds with as many details as possible "
Current ratio 2.5
Liquidity ratio 1.5
Proprietary ratio (fixed assets/proprietary fund) 0.75
Working capital Rs. 60,000
Reserves and surplus Rs. 40,000
Bank overdraft Rs. 10,000
14. Prepare a Cash Flow Statement for the year ended
31.12.2006.
Liabilities 2005 2006 Assets 2005 2006
Rs. Rs. Rs. Rs.
Accounts
Payable
29,000 25,000 Cash 40,000 30,000
Capital 7,39,000 6,15,000 Debtors 20,000 17,000
Stock 8,000 13,000
Building 1,00,000 80,000
Fixed Asset 6,00,000 5,00,000
7,68,000 6,40,000 7,68,000 6,40,000
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Additional information:
There were no drawings.
There were no purchases or sale of either building or
other fixed assets.
15. State the uses and limitations of ratio analysis.