All India Management Association (AIMA) 2007 M.B.A Marketing Management Accounting for ision Making - II - Question Paper
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(e) Reduced cycle times.
( 1 mark)
68. Which of the subsequent methods is used for Brand evaluation of a company?
(a) Earnings evaluation Method
(b) Super Profits Method
(c) Normal Profit method
(d) Average Profit method
(e) Gross value method.
( 1 mark)
69. The accountant of Katrina Ltd. is reviewing the profitability of the company’s 2 products Q and R. The subsequent is an excerpt from the income statement of the 2 products:
Particulars Q R
Sales (Rs.) 18,000 12,600
Cost of goods sold (Rs.) 7,056 13,968
Gross profit (Rs.) 10,944 (1,368)
Operating expenses (Rs.) 2,976 2,826
Income before income taxes (Rs.) 7,968 (4,194)
Units sold (Units) 1,200 1,800
Sales price per unit (Rs.) 15 7
Variable cost of goods sold per unit (Rs.) 3.00 6.50
Variable operating expenses per unit (Rs.) 1.25 1.00
If product R is discontinued, the income will be
(a) Increased by Rs.900
(b) Decreased by Rs.900
(c) Increased by Rs.4,194
(d) Decreased by Rs.4,194
(e) Increased by Rs.1,368.
( 2 marks)
70. Preksha Ltd. has furnished the subsequent info relating to the manufacture of its product B:
Particulars Rs.
Opening stock:
Raw materials 4,000
Work-in-progress 6,000
Raw materials purchased 49,000
Direct wages 20,000
Factory overheads 9,000
Direct expenses 9,000
Closing Stock:
Raw materials 3,000
Work-in-progress 5,000
The works cost of product B is
(a) Rs.50,000
(b) Rs.89,000
(c) Rs.90,000
(d) Rs.49,000
(e) Rs.88,000.
( 2 marks)
71. The subsequent factors influence the Brand Strength of a company other than
(a) Customer loyalty
(b) Statutory protection
(c) Brand Management by the company
(d) Short term patterns
(e) The markets in which it operates.
( 1 mark)
72. Under which of the subsequent cases the margin of safety decreases?
(a) Reduction in fixed cost
(b) Increase in variable cost
(c) Increase in the level of production or selling price or both
(d) Change in the sales mix in order to increase the contribution
(e) Substitute the existing unprofitable product with the profitable ones.
( 1 mark)
END OF ques. PAPER
Suggested Answers
Accounting for Decision Making - II (MB2D2): October 2008
| Earning: Approval pending. |
