Annamalai University 2007 B.B.A MANAGEMENT ACCOUNTING - Question Paper

Register Number :
Name of the Candidate :
7 three nine 5
B.B.A. (Computer Applications )
DEGREE EXAMINATION, 2007
( 2nd YEAR )
( PART - III )
( PAPER - V )
630. MANAGEMENT ACCOUNTING
( Including Lateral Entry )
May ] [ Time : three Hours
Maximum : 100 Marks

part - A (10 × two = 20)
ans any TEN ques..
All ques. carry equal marks.
1. What is break - even analysis ?
2. What is budgetary control ?
3. What is capital budgeting ?

4. What is management accounting ?
5. What is cost audit ?
6. What is standard costing ?
7. What is marginal cost ?
8. discuss net terminal value method.
9. What is ARR ?
10. elaborate objectives of budgetary control ?
11. What is the role of management accountant ?
12. Write a short note on index method.
part - B (4 × 10 = 40)
ans any 4 ques..
All ques. carry equal marks.
13. explain in detail functions of cost audit and
procedure.
14. Compare and contrast various methods of
capital budgeting method.
15. elaborate the steps involved in zero based
budgeting ? discuss in detail.
16. explain the application of concept of marginal
costing.
17. A factory manufactures 2 kinds of products
X and Y. Product Y takes five hours to make
and Y requires 10 hours. In a month of
25 effective days of eight hours a day, 1,000 units
of X and 600 units of Y were produced.
The company employs 50 workers in the
production department. The budgeted hours
are 1,02,000 for the year. compute capacity
ratio, activity ratio and efficiency ratio.
18. From the subsequent information, obtain out the
amount of profit earned during the year using
marginal costing technique :
Fixed costs - Rs. 5,00,000
Variable cost - Rs. 10 per unit
Selling price - Rs. 15 per unit
Out put level - 1,50,000 units.
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Turn over

part - C (2 × 20 = 40)
ans any 2 ques..
All ques. carry equal marks.
19. discuss the various kinds of standards
applicable under standard costing.
20. Simplex Co. Ltd., has the subsequent capital
structures :
Rs.
Equity capital
(expected dividend 12 %) - 10,00,000
10 % preference capital - 5,00,000
8 % loan - 15,00,000
compute the weighted avg. cost of capital,
assuming the rate of Income - tax to be 50 %.
21. What is budgetary control and how is it
exercised ?
22. Write short notes on :
(i) Margin of safety.
(ii) Contribution.
(iii) Convention of consistency.
(iv) pattern analysis.
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Earning:   Approval pending.