DISTANCE EDUCATION
B.B.A. (Banking)/ B.B.A. (Banking) (Lateral) DEGREE
EXAMINATION, MAY 2016.
MANAGEMENT ACCOUNTING
(2005 Onwards)
Time Three hours Maximum 100 marks
PART A — 8 40 marks)
Answer any FIVE questions.
1. Define management accounting. Explain the functions of
management accounting.
2. What are the advantages of budgetary control?
3. Discuss the various types of capital expenditure.
4. Explain briefly the application of marginal costing
technique.
5. What do you understand by the term break even
analysis? Bring out its limitations.
6. What do you mean by ratio analysis? Explain its utility.
7. How cash flow statement differ from fund flow statement.
8. Calculate BEP (in units and in rupees) from the given
data
Fixed cost Rs. 3,00,000
Variable cost per unit Rs. 20
Selling price per unit Rs. 30
Sub. Code
33
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PART B — 15 60 marks)
Answer any FOUR questions.
9. Distinguish between management accounting and cost
accounting.
10. Discuss the various types of report. Briefly explain its
uses to management.
11. For the production of 10,000 electric automatic fans the
following are the budgeted expenses. You are required to
prepare budget for the production of 6000 electric
Automatic Fan.
Per Unit in rupees
Direct materials 60
Direct labour 30
Variable overheads 25
Fixed overheads (Rs.1,50,000) 15
Variable expenses (Direct) 5
Selling expenses fixed) 15
Administration expenses (Rs. 50,000 fixed) 5
Distribution expenses fixed) 5
160
12. A choice is to be made between two competing proposals
which require an equal investment of Rs. 50,000 and are
expected to generate net cash flow as under
Project Rs. Project Rs.
End of I year 25,000 10,000
End of II year 15000 12000
End of III year 10,000 18000
End of IV year NIL 25,000
End of V year 12,000 6,000
End of VI year 6,000 4,000
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The cost of capital of the company is 10%. The P.V.
factors at 10% per annum.
Year Present value factor p.a.
1 0.909
2 0.826
3 0.751
4 0.683
5 0.621
6 0.564
Evaluate project proposal under
Discounted cash flow method and
Excess present value index method.
13. From the given information calculate
Current assets
Current liability
Liquid assets and
Stock current ratio 2.5 liquid ratio 1.5 working
capital Rs. 90,000.
14. From the given balance sheet, prepare a statement of
source and uses of funds.
Liability 31.3.2009 31.3.2010 Assets 31.3.2009 31.3.2010
Share
capital
90,000 90,000 Gross block 1,55,000 1,56,000
Bank
loan
1,19,000 2,10,000 (Less
depreciation)
7,000 10,000
1,48,000 1,46,000
Current
liability
46,000 48,000 C.A. 40,000 1,00,000
P and L a/c 67,000 1,02,000
2,55,000 3,48,000 2,55,000 3,48,000
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15. From the given data calculate
P/V ratio
Profit when sales are Rs. 20,000 and new BEP if
sales price is reduced by 20%
Fixed expenses Rs. 4,000
Break even point (Sales) Rs. 10,000.