Punjab Technical University 2006-5th Sem M.B.A III/I COST MANAGEMENT ACCOUNTANCY - Question Paper

COST MANAGEMENT ACCOUNTANCY
M.B.A
M.B.A (Pro)
IIIrd /IVth Semester (2096)

Time: three Hours Max Marks:75

Note: Part A is compulsory and have 15 short ans ques. of two marks every. Part B is consists of 12 long ans ques. of five marks each,out of which you have to attempt 9 ques..

SECTION A

1. Write short note on the subsequent

(a) Classify costs on the basis of elements.
(b) Differentiate ranging from material requisition and bill of material.
(c) How overheads are classified?
(d) Name a few of the systems of wage payment.
(e) How variable cost is useful in managerial decision making?
(f) Distinguish ranging from variable costing and absorption costing.
(g) Differentiate budget, budgeting and budgetary control.
(h) How budget revision is done?
(i) How variance analysis is useful in cost control?
(j) Name the phases of management control.
(k) Discuss cost center and profit center.
(l) What is meant by internal audit?
(m) Mention 2 benefits of activity based costing.
(n) What is value chain analysis?
(o) How marginal of safety is useful for optimizing product mix?


Part B (9X5=45)

2. What do you mean by transfer price? How it is determined?
3. Explain Target Costing. elaborate the steps to be taken in target costing?
4. How responsibility centres are useful in cost control?
5. What is meant by variance analysis? How material variances can be ascertained?
6. What are the points to be considered for implementing effective system of budgetary control?
7. Explain CVP analysis. How it is useful in managerial decision-making?
8. Discuss the applications of CVP under conditions of uncertainity.
9. Explain management audit. Mention its advantages.
10. How value chain analysis help in minimizing costs?
11. The profit quantity ratio of NAnda Limited dealing office equipments is 50% and the marginal of the safety is 40%.

You are needed to work out the break even point and the net profit if the
Sales quantity is Rs.50,00,000.
12. About 50 items are needed everyday for a machine. A fixed cost of Rs. 50 per order is incurred for placing an order. The inventory carrying cost per item amounts to Rs.0.02 per day. The lead period is 32 days calculate

(i) Economic Order volume
(ii) Re-Order Level
13. Mention the limitations of cost and management accounting that hinder in managerial decision making.

Earning:   Approval pending.