All India Management Association (AIMA) 2007 M.B.A Marketing Management Accounting for ision Making - II - Question Paper
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(a) Rs.7,00,000
(b) Rs.6,50,000
(c) Rs.6,00,000
(d) Rs.9,75,000
(e) Rs.5,00,000.
( 2 marks)
9. Which of the subsequent is actual with respect to target costing?
(a) It is a method of price skimming
(b) It is used to develop a short run price
(c) It is a method of penetration pricing
(d) It is a process where the cost of the product is determined and then an improper price is chosen
(e) It is the manufacturing cost for a product which is arrived at by subtracting the acceptable profit margin from the expected market price.
( 1 mark)
10. Which of the subsequent factors is to be multiplied with contribution margin ratio to compute profit?
(a) Unit contribution margin
(b) Margin of safety
(c) Variable costs per unit
(d) Unit sales price
(e) Change in sales quantity.
( 1 mark)
11. The current sales price of product of Teddy Ltd. is Rs.180 per unit. Variable costs are expected to increase from Rs.140 to Rs.150 per unit. Fixed costs of Rs.6,00,000 will not change. The number of additional sales units needed in order to maintain the existing operating income of Rs.7,20,000 is
(a) 10,000 units
(b) 8,800 units
(c) 8,000 units
(d) 11,000 units
(e) 2,800 units.
( 2 marks)
12. The operating outcomes of M/s. Swastik Steels Ltd. for the year 2007-08 were as follows:
Product Sales Mix (%) PV Ratio (%)
A 34 16
B 22 6
C 44 13
Total sales value of all the products was Rs.550 lakh and fixed costs amounted to Rs.18 lakh. The composite Profit-Volume ratio of the company was
(a) 12.48%
(b) 14.75%
(c) 15.20%
(d) 11.25%
(e) 10.75%.
( 2 marks)
13. Khullar Appliances Ltd. has given the subsequent info for its product for a period:
Particulars Rs.
Direct materials 65,200
Direct wages 53,300
Direct expenses 56,500
Manufacturing overhead costs 37,200
Administrative overhead costs 27,600
The prime cost of the product was
(a) Rs.1,18,500
(b) Rs.1,55,700
(c) Rs.1,75,000
(d) Rs.2,12,200
(e) Rs.2,58,500.
( 2 marks)
14. If the activity level is increased from 70% to 78%, the fixed cost
(a) Will decrease by 8%
(b) Will increase by 8%
(c) Per unit will increase by 8%
(d) Per unit will decrease by 8%
(e) Per unit will decrease.
( 1 mark)
15. Banta Ltd. manufactures product KDM for last ten years. The company maintains a margin of safety of 36% with an overall contribution to sales ratio of 35%. If fixed cost is Rs.8.4 lakh, the profit of the company is
Earning: Approval pending. |