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

production of existing 48,000 units of such products by the company will not change. Accepting this
job by the company will
(a) Increase profit by Rs.27,020
(b) Increase profit by Rs.23,000
(c) Increase profit by Rs.70,420
(d) reduce profit by Rs.70,420
(e) reduce profit by Rs.23,000. (2marks)
(e) reduce profit by Rs.23,000. (2marks)

18.A standard which can be attained under the most favorable conditions is called
(a) Basic standard
(b) Expected standard
(c) High standard
(d) Current standard
(e) Ideal standard. (1 mark)

19.Which of the subsequent statements is false in respect of activity based costing?
(a) It does not segregate variable and fixed costs
(b) It tends to be more costly than traditional methods of costing
(c) It is based on historical costs
(d) It highlights the causes of costs
(e) It deals with the direct costs only. (1 mark)

20.Jain Ltd., has furnished the subsequent info pertaining to product M for the month of March
2008:
The sales price variance for the month was
Particulars true Budget
Sales (Units) 18,500 17,250
Sales revenue (Rs.) 2,37,540 2,27,700
(a) Rs.6,210 (Adverse)
(b) Rs.6,210 (Favorable)
(c) Rs.6,660 (Favorable)
(d) Rs.6,660 (Adverse)
(e) Rs.9,840 (Favorable). (1 mark)

21.Which of the subsequent statements is false?
(a) The use of budget by management to monitor and control a company’s operations is called
budgetary control
(b) The 1st financial budget prepared is the cash budget
(c) In a fixed budgetary control system, the master budget is based on a single prediction for sales
or production quantity
(d) Successful budget should have adequate flexibility to meet changing business conditions
(e) Indirect materials are generally included in factory overhead budget. (1 mark)

22.Shweta Ltd., produces and sells 750 units of product-H every month, with total variable costs of
Rs.12,375 and total fixed costs of Rs.9,000. Idle capacity would permit the acceptance of a special
sales order for 500 units every month. Which of the subsequent minimum selling prices is acceptable for
the product?
(a) Rs.28.50

Earning:   Approval pending.