Andhra University 2007-1st Sem M.B.A International Business - Master of Business Administration - Question Paper

Time: three hours
Max Marks: 100

1. The candidate shall ans 5 ques. from part - A, 5 ques. from part - B

2. part - A consists TEN Short ans ques. out of which the candidate has to ans any 5 ques.. every ques. carries 5 marks. I.e 5x5=25 marks

1. part - B shall consist of 5 ques.. every ques. shall consists of either or options and the candidate has to ans either (a) or (b) from every ques.. every ques. carries 15 marks, ie 4x15=60 marks

part - A (5X5=25)

1. describe & discuss any 5 of the subsequent.

a. Going Concern Concept
b. Accounting Conventions
c. Performance Appraisal
d. Financial Rations
e. Accounting politics
f. Comparative Financial Statements
g. Master Budget
h. Differential Accounting
i. Cost Drivers

part - B (5x15=75 marks)

2. a. elaborate the distinctions ranging from Financial Accounting and Cost Accounting?

(or)

b.Examine the role of Accountant in Modern Organisations?

3. a. elaborate generally accepted Accounting Principles and Accounting Standards governing the preparation of Financial Statements?

(or)

b. discuss different methods of Analysis and Interpretation of financial statements.

4. a. State what you consider to be the advantages and disadvantages of marginal cost method of costing as compared with other methods?

(or)

b. VK Ltd a multi-product Company, furnishes you the subsequent data relating to the year 2000

First Half of the year 2nd Half of the year
Sales Rs. 45,000 Rs. 50,000
Total Cost Rs. 40,000 Rs. 43,000

Assuming that there is no change in prices and variable costs and that the fixed expenses are incurred equally in the 2 half years periods compute for the year 2000.

1. The Profit quantity ration 2. Fixed Expenses 3. Break-Even Sales 4. Percentage of margin of safety.

5. a. What is the most right criterion of the relative profitability of product lines or the segments of a business? (or) b. A Company which has a chain of Bhoe Shops throughout the country has 2 shops in Madras of which shop I makes profit and loss account of shop II for the year ended 31st December, 2001.


Rs.
Sales 6,00,000
Cost of Sales 4,92,000
-----------
Gross Profit 1,08,000
-----------
Expenses:
Commission to Salesman 6,000
Manager's salary 12,000
Head Office Expenses 10,500
Motor Van Expenses
Fixed(allocated) 6,900
Variable (allocated) 2,400
Other Items 1,09,950 1,47,750
----------
Less for the Year 39,750
----------

The Commission to salesman is a fixed percentage on turnover. There is a common manager for 2 shops and his salary is equally shared by the shops. The motor van is also common to the 2 shops. The fixed expenses are shared equally by the 2 shops.

Prepare a report explaining the financial implications of the closing down of shop II assuming that 20 per cent of its turnover will be gained by shop I without that shop needing any additional staff.

1. a. describe a 'Flexible Budget'. The expenses budgeted for production of 10,000 nits in a factory are furnished beneath.


Per Unit (Rs.)
Materials 70
Labour 25
Variable Overheads 20
Fixed Overheads (Rs. 1,00,000) 10
Variable Expenses (Direct) 5
Selling Expenses (10% Fixed) 13
Distribution expenses (20% Fixed) 7
Administrative Expenses(Rs. 50,000) 5
Total cost of Sale per Unit 155
(to make and sell)

Prepare a budget for the production of a. 8,000 Units and b. 6,000 Units
Assuming that administrative expenses are rigid for all levels of production.

(or)

b.What is Zero-Base Budgeting (ZBB)? discuss the process of ZBB and its advantages?

Earning:   Approval pending.