2010 Politics MAY / Madurai Kamaraj University / M.B.A / D12 - MANAGEMENT ACCOUNTING / Question paper Question paper
(For those who joined in July 2000 and after)
Time: Three hours Maximum: 100 marks
SECTION A — (5 x 4 = 20 marks)
Answer any FIVE questions.
1. What is a trial balance and how does it differ from a balance sheet?
2. What do you mean by Master Budget?
3. Define marginal cost.
4. What is CVP analysis?
5. What do you mean by accounting cycle?
6. List out any four limitations of standard costing.
SECTION B — (4 x 8 = 32 marks)
Answer any FOUR questions.
7. Define Management Accounting. Discuss the scope and functions of Management Accounting.
8. Discuss the role and importance of management accounting in the efficient working of an industrial concern.
9. What do you understand by budgetary control? Explain the objectives of budgetary control with special reference to a large manufacturing concern.
10. State four different methods of finding out the break-even point.
11. What are the objectives of Financial reporting of business enterprises?
12. Explain the technique of marginal costing and state its importance in decision making.
SECTION C — (2 x 24 = 48 marks)
Answer any TWO questions.
13. The following is the Trial Balance of K.Benjamin on 31st March 2008.
Cash in hand 540
Cash at bank 12,630
Purchase Account 1,40,675
Sales Account 2,58,780
Returns inwards account 2,680
Return outwards account 1,500
Wages account 20,480
Fuel and power account 4,730
Carriage on sales account 3,200
Carriage on purchases account 2,040
Stock account (1st April 2007) 25,760
Building account 30,000
Free hold land account 20,000
Machinery account 20,000
Patents account 7,500
Salaries account 15,000
General expenses account 13,000
Insurance account 600
Drawings account 15,245
Capital account 82,000
Sundry debtors 14,500 6,300
Taking into account into the following adjustments, and prepare trading and profit and loss account and balance sheet.
a) Stock on hand on 31st march 2008 is Rs. 26,800.
(b) Machinery is to be depreciated at the rate of 10% and patents at eh rate of 20%
(c) Salaries for the month of march 2008 amounting to R.s. 1,500 were unpaid
(d) Insurance includes a premium of Rs. 170 on a policy, expiring on 31st September 2008.
(e) Wages include a sum of Rs. 2,000 spent on the erection of cycle shed for employees and customers.
(f) A provision for bad and doubtful debts to be created to the extend of 5% on sundry debtors.
14. A small tool company uses job costing. The following cost data is obtained from the books of the previous year ended December 31.
Direct materials 90,000
Direct wages 75,000
Selling and distribution overheads 52,500
Administration over heads 42,000
Factory overheads 45,000
(a) Prepare a job cost sheet indicating the prime cost, work cost, production cost, cost of sales and sales.
(b) In the current year, the company has received orders for a number of Jobs. It is estimated that direct material required will be Rs. 1,20,000 and direct labour cost Rs.75,000 what should be the price for these jobs if the factory intends to earn the same rate of profit on sales, assuming that the selling and distribution overheads have gone up by 15%. The factory recovers factory overheads as a percentage of direct wages and administration and selling and distribution overheads as a percentage of worksheet based on cost rates prevelling in the previous year.
15. From the following data you are required to calculate BEP and net sales value at this point.
Direct material cost per unit 10
Direct labour cost per unit 4
Fixed over heads 30,000
Variable overheads @ 50% on direct labour Selling Rs. 30 price per unit
Trade discount 10%
If sales are 20% and 25% above the break even volume, determine the net profit.
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