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

(e) Rs.295.83. (2marks)
(e) Rs.295.83. (2marks)

27.Consider the subsequent data of Combi Ltd., for a period:
The total volume of materials to be purchased during the period is
Projected production 37,500 units
Raw materials per unit of finished goods three kg
Opening stock of raw materials 24,200 kg
Closing stock of raw materials 28,000 kg
(a) 1,16,300 kg
(b) 1,23,900 kg
(c) 1,08,700 kg
(d) 1,04,800 kg
(e) 1,01,100 kg. (2marks)

28.The subsequent info is extracted from the books of Parmeshwari Ltd., for product ‘HIK’ for the
month of March 2008:
If there is no labor rate variance, the labor efficiency variance would be
Standard labor hours per unit five hours
true hours 350 hours
true labor rate Rs.22.40
Units produced 78 units
(a) Rs.581 (Favorable)
(b) Rs.581 (Adverse)
(c) Rs.896 (Adverse)
(d) Rs.896 (Favorable)
(e) Rs.729 (Adverse). (2marks)

29.Which of the subsequent statements is false?
(a) Under full cost pricing, the normal mark-up is based on sales value
(b) Full cost pricing is designed to recover both fixed costs and variable costs
(c) Contribution margin pricing and full cost pricing are complementary to every other but not
competing
(d) Pricing decisions may be influenced by internal factors such as cost and profit objectives
(e) Contribution margin approach to pricing is concerned with cost, quantity and profit. (1 mark)

30.Audi Ltd., has furnished the subsequent info relating to its product for the month of March 2008:
The accountant of the company has determined the subsequent variances for the period:
The standard material cost per unit for the period was
Output
Material 5,100 kg
7,600 units
Rs. 60,750
Material price variance
Material usage variance
Rs.2,850 (F)
Rs. 900 (A)
(a) Rs.6.45
(b) Rs.7.74
(c) Rs.8.25
(d) Rs.8.00
(e) Rs.8.52. (2marks)

31.A budget manual, which enhances the operation of a budgeting system, is most likely to include
(a) Employee training policies
(b) Distribution instructions for budget schedules
(c) Employee hiring policies
(d) Documentation of the accounting system

Earning:   Approval pending.