BCOM/III/CC/09 Student's Copy
2 0 1 8
CBCS
3rd Semester
COMMERCE
Management Accounting
Full Marks 75
Time 3 hours
PART A—OBJECTIVE
Marks 25
The figures in the margin indicate full marks for the questions
SECTION—A
Marks 10
Choose the correct answer and place its code in the bracket provided 1×10=10
1. Management Accounting is providing
decision data
final account reports
2. Management Accounting generates reports for
government
internal management
external stakeholders
internal and external stakeholders
/47 1 Contd.
3. Goodwill in case of a joint-stock company is shown on the assets side
under the head
fixed assets
current assets
investments
intangible assets like patents
4. If the current ratio is 5 3 and current liability is R 60,000, then working
capital will be
R 20,000 R 30,000
R 40,000 R 50,000
5. Contribution comprises
fixed cost and profit
variable cost and profit
fixed cost and variable cost
marginal cost and profit
6. If variable cost per unit is R 15, selling price is R 20 and fixed cost is
R 54,000, then BEP will be
10200 units 10500 units
10800 units 20000 units
7. A budget that gives a summary of all the functional budgets and projected
Profit and Loss A/c is known as
Capital Budget Flexible Budget
Master Budget Zero-base Budget
8. The fixed-variable cost classification has a specified significance in the
preparation of
Master Budget Cash Budget
Fixed Budget Flexible Budget
BCOM/III/CC/09/47 2 Contd.
9. The type of standard best suitable for cost control purpose is
basic standard ideal standard
normal standard expected standard
10. Labour cost variance is the difference between
standard labour cost and actual labour cost
fixed labour cost and variable labour cost
estimated labour cost and standard labour cost
standard labour cost and variable labour cost
SECTION—B
Marks 15
Write notes on the following in not more than 6 sentences each 3×5=15
1. Objectives of Management Accounting
OR
2. Limitations of Management Accounting
3. Quick ratio with examples
OR
4. Current ratio with examples
5. Characteristics of marginal costing
OR
6. Margin of safety
7. Zero-base budgeting
OR
8. Objectives of a budget
9. Difference between Standard Costing and Budgetary Control
OR
10. Standard price and Actual price
BCOM/III/CC/09/47 3 Contd.
PART B—DESCRIPTIVE
Marks 50
The figures in the margin indicate full marks for the questions
Answer one question from each Unit
UNIT—I
1. What are the functions of management accounting? 10
2. Write in detail about the tools and techniques used for management
accounting. 10
UNIT—II
3. Discuss the usefulness and limitations of financial statements. 5+5=10
4. From the following Balance Sheet of ABC Ltd. as on 31st December, 2017,
compute Working Capital, Current Ratio, Acid-test Ratio and
Absolute Liquid Ratio 10
R
Cash 9,500
Marketable Securities 15,000
Inventories 1,00,000
Debtors 83,000
Prepaid Expenses 5,000
Long-term Loans 1,06,000
Trade Creditors 64,000
Income Tax Payable 9,000
Accrued Income 2,000
Accrued Expenses 12,800
UNIT—III
5. What are the features of Marginal Costing? Describe in brief about the
limitations of marginal costing. 4+6=10
BCOM/III/CC/09/47 4 Contd.
6. Consider the following particulars
R
Fixed Expenses 1,50,000
Variable Cost (per unit) 10
Selling Price (per unit) 15
Calculate—
contribution;
P/V Ratio;
BEP in units and in rupees;
margin of safety.
What will be the selling price per unit if the BEP is brought down to
25000 units? 10
UNIT—IV
7. What are the objectives of budgetary control? Write in detail about the
limitations of budgetary control. 5+5=10
8. Draw up a flexible budget for production at 75% and 100% capacity on the
basis of the following data for a 50% activity 10
Per Unit
R
Expenses
R
Raw Material 100
Direct Labour 50
Variable Expenses (direct) 10
Administration Overhead fixed) 40,000
Selling Expenses fixed) 50,000
The actual production during the period was 1000 units.
UNIT—V
9. Define Standard Cost and Standard Costing. State main objectives and
advantages of Standard Costing. 5+5=10
BCOM/III/CC/09/47 5 Contd.
10. The standard raw materials costs of producing 300 units of product A
were
600 units of raw materials R 50 per unit R 30,000. But actual raw
materials cost of producing 300 units of product A were 1000 units of raw
materials R 40 per unit R 40,000. Determine—
raw material cost variance;
raw material price variance;
raw materials usage variance. 10