Bharathidasan University 2008 M.B.A Barathidasan University Accounting for Managers - Question Paper

Barathidasan University MBA Accounting for Managers June 2008

ans any five : 5*20=100
Time : three Hrs

1. elaborate the limitations of financial accounting?
2. Justify the need for cost accounting.
3. discuss the different bases for classification of costs.
4. elaborate the differences ranging from a `Cost Sheet’ and `Tender’.
5. Prepare a cost sheet for the production of 100 units of an article using
imaginary figures.
6. Prepare a statement of cost showing:
(a) Value of materials consumed
(b) Total Cost of Production
(c) Cost of Goods Sold and
(d) The amount of Profit
From the subsequent details relating to a Toy manufacturing concern:
Rupees
Opening Stock: Raw materials 25,000
Finished goods 20,000
Raw materials purchased 2,50,000
Wages paid to labourers 1,00,000
Closing Stock: Raw materials 20,000
Finished goods 25,000
Chargeable expenses 10,000
Rent, rates and taxes (Factory) 25,000
Motive power 10,000
Factory heating and lighting 10,000
Factory insurance 5,000
Experimental expenses 2,500
Waste materials in Factory 1,000
Office Salaries 20,000
Printing and Stationery 1,000
Salesmen’s salary 10,000
Commission to Travelling Agents 5,000
Sales 5,00,000
7. Kolam Products Ltd. produces a stabilizer that sells for Rs.300. An
increase of 15% in the cost of materials and 10% in the cost of labour is
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anticipated. If the only figures available are those provided below, what must be the
selling price to provide the identical percentage of gross profit as before?
(a) Material costs have been 45% of cost of sales
(b) Labour costs have been 40% of cost of sales
(c) Overhead costs have been 15% of the sales
(d) The anticipated increased costs in relation to the current sale
price would reason a 35% reduce in the amount of current gross
profit.

8. What is meant by Cost-Volume-Profit Analysis? discuss its
application in managerial decision making.
9. How would you construct a Break-Even Chart?

Earning:   Approval pending.