Symbiosis International Education Centre 2008 M.B.A Business Administration Management accounting - Question Paper

ques. Paper
Management Accounting – II (MB162): April 2008
• ans all 70 ques..
• Marks are indicated against every ques..
Total Marks : 100
1. Which of the subsequent is actual in respect of full cost pricing method?
(a) It is used to recover market price plus mark-up
(b) It is used to recover standard cost plus mark-up
(c) It is used to recover fixed costs only
(d) It is used to recover variable costs only
(e) It is used if a company does not have the basic idea of demand for the product. (1 mark)

2. If a company has unfavorable material price variance, which of the subsequent departments is primarily
held responsible?
(a) Stores department
(b) Production department
(c) Inspection department
(d) Purchase department
(e) Receiving department. (1 mark)

3. Swathi Ltd., has given the subsequent data for the month of March 2008:
The material price variance for the month was
Particulars true Standard
Material cost per unit Rs.81 Rs.75
Materials used in production 2,480 units 2,350 units
(a) Rs.14,880 (Adverse)
(b) Rs.14,880 (Favorable)
(c) Rs.14,100 (Adverse)
(d) Rs.14,100 (Favorable)
(e) Rs. 9,750 (Adverse). (1 mark)

4. The method of pricing in which the transfer price is usually based on either listed price of an identical
or similar product or service, or the price of a competitor is known as
(a) Full cost transfer pricing
(b) Market based transfer pricing
(c) Negotiated transfer pricing
(d) Marginal cost transfer pricing
(e) Cost plus mark-up transfer pricing. (1 mark)

5. Which of the subsequent is not a characteristic or assumption of Product Life Cycle Costing?
(a) Product cost, revenue and profit trends tend to follow predictable courses through the product
life cycle
(b) every phase of the product life cycle poses various threats and opportunities
(c) The products have infinite life period
(d) Profit per unit varies as products move through their life cycles
(e) Products require various functional emphasis in every phase. (1 mark)

6. If the selling subunit is operating at full capacity and can sell every thing produced, either internally or
externally, the transfer price of the product will be fixed up on the basis of
(a) Negotiation ranging from the divisions
(b) Market price
(c) Variable cost
(d) Cost plus a mark-up

Earning:   Approval pending.