University of Delhi 2010-1st Year M.Com Commerce MANAGEMENT ACCOUNTING UNIVERSITY - Question Paper
This question paper contains 16 printed pages]
Your Roll No
6436
M.Coitl/I J
Course 416MANAGERIAL ACCOUNTING (Old Course)
(Admissions of 2004 and onwards)
Time 3 Hours Maximum Marks : 75
W : 3 : 75
Note The maximum marks printed on the question paper are applicable for the candidates registered with the School of Open Learning. These marks will, however, be scaled down proportionately in respect of the students of regular colleges, at the time of posting of awards for compilation of result*
(Wnte your Roll A'o on the top immediately on receipt of this question paper)
frfote Answers may be written either in English or in Hindi;
but the same medium should be used throughoutthe paper.
3 TTT; fsfR wft 3tRf # #TT
I
Attempt All questions.
All questions carry equal marks.
1. Explain the scope of management accounting How are banks and non-profit organisations benefited by management accounting ? 15
Or
. (3TraO
() Discuss the status and functions of management accountant 8
() Explain the following costs for managerial decision making 7
*
(i) Product and penod cost
*
(u) Controllable and uncontrollable cost () TO yiftqfe 3?R 3RFTC? 1WR
*iri
() sqsreta fnuto faq pHHfdfed Bnraf
What is Activity-based Costing Compare the advantages and disadvantages of activity-based costing with traditional costing 15
Ishmdm SjrorftcT TT TTTcqf t ?
PsmdiM srraifcr eTPT-fmkT rt
j 0r (arsrai)
Distinguish between budgeting and standard costing Discuss the functions of budgeting 15
3. Evaluate advantages and disadvantages of variable costing over absorption costing 15
Or
Modi Zerox Co manufactures toner used in photocopy machines The company's product is sold by the jug at Rs 50 per unit The company uses an actual costing system, which means that the actual cost of direct materials, direct labour and manufacturing overhead are entered into work-in-process inventory. The actual application rate for manufacturing overhead is computed each year, actual manufacturing overhead is divided by actual production (in units) to compute the application rate Information for first two years of operation is as *
follows :
Year 1 Year 2
(Rs) (Rs)
Sales units 2,500 2,500
Production units ' 3,000 2,000
Production costs *
Variable manufacturing
costs 21,000 14,000
Selling and Administrative Costs
Variable 25,000 25,000
Fixed 20,000 20,000
Required
(ii) Prepare income statements for both years based on absorption costing and variable costing
(u) Prepare a reconciliation of differences in income reported under the two costing methods 15
eft Mil
tl 50*?. Tfft facfrcTT % i
t % TTPRTft, 3R*t$r 9R 3ftr 11 rfWT
fair 3%! Tift Pf
srrat ti sTTfdPcfch pcjpfqfm <mRoM -fere* w
($bl$4) 3) $ faW 3FJ5Fftn TITO TTcfr %i yqid'H 1tT? TT y<=hK % :
TTHT TTT
fJ#>1 2,500 2,500
WI 3,000 2.000 HPTf :
LlRcldT WtH cTFTf 21,000 14,000
fW PclPTfq 42,000 42,000
toft 3r yvrraPiefi HPTf :
MfdT 25,000 25,000
ftsR 20,000 20,000
3Tf|TcT :
1
(i) STcTefR eTFffi fTT sfa MRddT WTcT-fTOT TR. 3TTKrrfeT 3*FJ TR
|
(ii) eTFIcT-fMta VTuilPdl STcFfa 3?p? 3 fMRcTTSfi -HHIh clR
The operating results of a company for the year 2009 are as follows .
|
Sales Mix |
P/V Ri | |
|
<%) |
(%) | |
|
1 > A |
40 |
20 |
|
B I |
10 |
6 |
|
c 1 |
30 |
12 |
|
D |
20 |
10 |
Total sales value of all the products are Rs. 80 lakhs. Total fixed overheads amounted to Rs, 10 lakhs The raw material content of each of the products represented 50% of the respective variable costs. The forecasts for the year 2010 is as under
(i) The raw material costs will go up by 10%
(iu) The company has been able to obtain an import quota' of raw materials of the value of Rs 35 lakhs
(tu) The maximum sale potentiality of any of the above four products is 40% of the 2009 sales value
(iv) The company expects to secure an increase of 5% m the selling prices of all the products uniformly
Required :
(I) Prepare a statement showing the profitability of 2009
(n) Set a product mix to maximise profits in 2010.
(HI) Prepare a statement showing the profitability of 2010. 15
TTcF TfPFft 2009 TMTeR MPTH JQ TOK
( 9 ) 6456
Wtt 80 cfM * 11
rftsrq 10 ro i 3 ft smt-srcpft Wrdf wrof Prfati r?ft ff 1
2010 fTtr tTH W | :
(ii) **WH) % 35 crJM TJjfS 'Hl FT 3JFTRT feT W<\ fOTl %l
(m) TTCT 3 'toft feft #qF2JcfT
| 2009 T 40% %l
(;) T&rft -mH r $ TRt TTf ft fh=RTt
3 5% 1Snfa STrrrfT %!
0) 2009 eTTTftcTT p. facOT cfaR
(II) 2010 3 TTf 3#TSRITT c '3FH
f*w>r ftsrffcr cpiri (iii) 2010 iq fecr forc
In a chemical plant four different products viz, AB, BC.CD
and DD emerge from the input of crude oil Product AB
can be sold un mediately, but the remaining three products
require further processing before they can be marketed
In a month, 40,000 litres of crude oil were procured at *
a cost of Rs 30 per litre and processed at a cost of
Rs 3 lakhs The details of output obtained, further
processing costs, selling price per unit etc are given
below
|
oduct |
Output |
Further Processing |
Selling Price |
|
Cost (Rs) |
at the point | ||
|
of sale | |||
|
AB |
8,000 kg |
Rs 45 per kg | |
|
BC |
10,000 kg |
80,000 |
Rs 60 per kg |
|
CD |
12,000 kg |
1,20,000 |
Rs 70 per kg |
|
DD |
5 000 litres |
60,000 |
Rs 80 per litre |
Prepare
(t) Statement showing apportionment of joint cost on suitable basis and productwise profitability statement
(u) If the company finds a market for CD at Rs 63 per kg without further processing, wiH it be advisable to accept it 9 15
TT f*FT
AB, BC, CD 3TR DD TTTCT AB
"TT ohdl %, 'ifftH FjT
37f?Tf TfsFR 37TTcn |l 30 T.
"SrfrT fcrl< eMti .40,000 Rrl<i< cRrf Wcl fTI
-rptt 2JT 3 WcT StsKJj fFT
TO JT1 UTO srfMcT Ushl TFRI,
jricf "nf snfe PiHifaici % :
AB 8,000 %.in. 45 %.TIT.
CD 12,000 fa UT 1,20,000 70 Trfft fa TIT.
DD 5,000 60.000 80 3lft fa TIT.
(i) 3TTCfR *R dHId SPTFjR R<SJI faqi afa 3rf?I IT? elTWfelT fe*Tl j
(ii) cbV'ft Ft CD "% Rn farr f?RT 63 Jlfh fa TIT. o|l'j|K fnd afRTI %, <T BTT W)hl4 qRn frm ?
Karan, a retailer provides the following data for 2007 and 2008
|
December |
December | |
|
2007 |
2008 | |
|
(Rs) |
(Rs) | |
|
Cash |
2,00,000 | |
|
Trade account receivable |
84,000 |
78,000 |
|
Merchandise inventory |
1,50,000 |
1,40,000 |
|
Accounts Payable |
(95,000) |
(98,000) |
Budgeted sales for 2008 are Rs 12,00,000, sales for 2007
A
were Rs 11,00,000 Cash sales average 20% of total sales each year Cost of goods sold for 2008 is estimated to be Rs 8,40,000 Budgeted 2008 variable operating expenses are Rs 1,20,000. They vary in proportion to sales paid 50% m the year incurred and 50% the following year Unpaid variable expenses are not included in accounts payable above
Fixed operating expenses, including Rs 35,000 depreciation and Rs 5,000 uncollectible accounts expense total Rs 1,00,000 per year. Such expenses involving cash payments are paid 80% in the year incurred and 20 percent the following year. Unpaid fixed expenses are not included in accounts payable above
Prepare a cash budget for 2008 with supporting computations on cash collection from credit sales and cash disbursements for purchases of merchandise and operating expenses 15
i '
\
rrnt, ww % 2007 2008 fn=rfafer
|
- | ||
|
f*K | ||
|
2007 |
2008 | |
|
(*-) |
00 | |
|
$<b4 |
2,00,000 | |
|
#*<rt iptr |
84.000 |
78,000 |
|
:|TCT 'RTef |
1,50,000 |
1,40,000 |
|
TSKt |
<95,000) |
* (98,000) |
2008 fk 12,00,000 t lfc 2007
ITTT 11,00,000 ?. I f3RBt 5 <?T
feft 20% irft tl 2008 feftr "RTeT
8,40,000 T 3TI'5hfcid % 1 Rk[ 2008
4Ro|dt SRIH 1,20,000 t1 3 3WT 50% tT fsT3ft 3fa STFTmt 3 50% 3? 3 tl srarT TSRt 3
TBT fTT ?FTT tl
35,000 3fa 5,000 ST#**
Trf%?T fcsR ifxtldt >T 3Tf?T 1,00,000 tcTT tl =re flcTH WTci 3 80% flcTR
IcTT % 20% 3TFTRt I 3 tW oqq $||fild R# %XT tttt f |
2008 RlH "3R fqjfrl % 'tch<A qjnl sift
-% %tr ufad<u| TTTT yltfd *RT m$<*> STfMeWl
"% *7 %*TR Tll
Or
(3mr)
A cost accountant of a company was given the following information regarding the overhead? for March 2010
(a) Overheads cost variance Rs 1,400 adverse
(b) Overheads volume \ a nance Rs 1,000 adverse
(c) Budgeted hours for March 2010, 1200 hours.
(d) Budgeted overheads for March 2010, Rs 6,000
(e) Actual rate of recovery of overheads Rs 8 per hour
You are required to assist him in computing the following for March, 2010
(0 Overheads expenditure variance.
(u) Actual hour5 for actual production (ii) Overheads capacity variance
(ti) Overheads efficiency variance
(v) Actual overheads incurred
(a) Standard hours for actual production 15
eTFTtT 2010
WTt fHHfdHsId sft :
() fTFTfT i 400 * yfd=hd
' ' cv
() WT TOT*T 1,000 ?- yfrT
(n) 2010 Mdfd 1200
() im 2010 'STSTHcT 6,000
37Nt 2010 fdHPtfRsid 3F%cT
3 Tft FBRmr t :
(v)- WTcT
(uO nsrfW w %it ttpw
6456 16 600
|
Attachment: |
| Earning: Approval pending. |
