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

47.Sankara Ltd., has given the subsequent true data for the last 2 quarters:
The company has estimated the budgeted profit for quarter III as Rs.78,050. The capacity utilization at
budgeted production for quarter III will be
Particulars Quarter I Quarter II
Capacity usage 42% 60%
Net profit (Rs.) 17,300 57,800
(a) 63%
(b) 72%
(c) 79%
(d) 69%
(e) 61%. (2marks)

48.Which of the subsequent activities is not a primary activity of value chain analysis?
(a) Procurement
(b) Inbound logistics
(c) Outbound logistics
(d) Service
(e) Marketing and sales. (1 mark)
(e) Marketing and sales. (1 mark)

49.The sales quantity variance is
(a) (Actual volume × true selling price) ~ (Standard volume × Standard selling price)
(b) true volume × (Actual selling price ~ Standard selling price)
(c) Standard selling price × (Actual volume of sales ~ Standard volume of sales)
(d) true selling price × (Actual volume of sales ~ Standard volume of sales)
(e) Standard volume × (Actual selling price ~ Standard selling price). (1 mark)

50.Kundan Ltd., manufactures and sells a special model of calculator – N9. The company has estimated
the subsequent for the month of April 2008:
The net cash surplus or deficit for the month will be
Credit sales Rs.7,85,000
Gross profit on sales 25%
reduce in sundry debtors Rs. 37,900
Total selling and administrative expenses Rs. 16,845
(a) Rs.1,79,405 (Deficit)
(b) Rs.2,17,305 (Surplus)
(c) Rs.1,47,125 (Deficit)
(d) Rs.2,08,905 (Surplus)
(e) Rs.1,96,250 (Surplus). (2marks)

51.The cost of manufacturing a sub-assembly of Motul Ltd., is provided below:
Annual fixed overhead costs which can be avoided by purchasing the sub-assembly are Rs.2,94,000.
The sub-assembly can be purchased from outside for Rs.45.05 per unit. If the annual requirement of the
sub-assembly is 52,500 units, then buying it from outside will
Particulars Rs. per unit
Material costs 20.50
Direct labour costs 8.40
Variable overhead costs 12.50
(a) Save Rs.1,02,375
(b) Save Rs.1,81,125
(c) Cost Rs.1,02,375 more
(d) Cost Rs.1,81,125 more
(e) Save Rs.80,000. (2marks)

Earning:   Approval pending.