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

(c) 5,200
(d) 5,350
(e) 5,617. (2marks)
(e) 5,617. (2marks)

13.Neelam is a divisional manager for Champ Ltd. He has been assigned the task of creating a production
budget for his division, which produces the company’s most popular stuffed toy. Budgeted sales for this
toy for the next year have been set at 6,25,000 units and the subsequent are the estimated data of the
finished goods and work-in-process for the year:
How many equivalent units should Neelam plan for his division to produce during the year?
Particulars
Finished goods units Work-in-process
equivalent units
Opening inventory 85,000 56,000
Closing inventory 1,80,000 64,000
(a) 4,80,000
(b) 5,22,000
(c) 6,25,000
(d) 7,28,000
(e) 7,70,000. (2marks)

14.Which of the subsequent pricing techniques does not consider fixed cost?
(a) Return on investment based pricing
(b) Contribution margin approach pricing
(c) Standard cost based pricing
(d) Cost plus profit pricing
(e) Full cost pricing. (1 mark)

15.Sona Ltd., has furnished the subsequent info pertaining to 1 of its products – ‘Integrated
Circuits’ for a period:
If variable cost is increased by 20% and the company wants to maintain the identical amount of profit, the
mark-up percentage on variable cost will be
Variable cost (Rs.) Rs.6,88,800
Fixed cost (Rs.) Rs.1,35,000
Sales value Rs.9,17,000
(a) 34.40%
(b) 32.50%
(c) 27.61%
(d) 29.28%
(e) 72.39%. (2marks)

16.Which of the subsequent variances is most controllable by the production control supervisor?
(a) Material price variance
(b) Material usage variance
(c) Variable overhead spending variance
(d) Fixed overhead budget variance
(e) Fixed overhead quantity variance. (1 mark)

17.Rahul Ltd., has been approached by a foreign customer who wants to place an order for 2,800 units of
Product C at Rs.33.50 per unit, although the company currently sells this item for Rs.49 per unit, and
the item has a cost of Rs.41 per unit. Further analysis reveals that the company need not pay sales
commission of Rs.3.65 per unit for the new order. The fixed costs amounting to Rs.6,48,000 for the

Earning:   Approval pending.