Madras University (UnOM) 2006 M.B.A Management Accounting - Question Paper

Time: 3 hours
Maximum: 80 marks

PART A - [8 x five = Marks 40]
ans any 8 ques..


1. What is the scope of Management Accounting?
2. elaborate the limitations of financial statements?
3. explain Dupont chart.
4. elaborate the applications of funds?
5. elaborate the objectives of capital expenditure control?
6. What is zero base budgeting?
7. Distinguish ranging from standard costing and budgetary control.
8. elaborate the main features of job order costing?
9. Distinguish ranging from job costing and process costing.
10. elaborate the limitations of break-even charts?
11. discuss the advantages of marginal costing.
12. elaborate the elements of MIS?

PART B - [4 x 10 = Marks 40]
ans any 4 ques..

13. "Financial statements reflect a combination of recorded facts, accounting conventions, and personal judgement". explain

14. What is meant by ratio analysis? explain the objects and limitations.

15. discuss the role of reporting system in a company? Bring out the types of reports prepared for various level of management.

16. There are 2 similar factories under the identical management. The management desires to merge these 2 plants. The subsequent particulars are available.

Plant A Plant B
Capacity Operation 100% 50%
Sales Rs. 3,00,000 1,00,000
Variable cost Rs. 2,20,000 75,000
Fixed cost Rs. 40,000 20,000

You are needed to compute :
(a) What would be the capacity of the merged plant to be operated for the purpose of break-even?

(b) What would be the profitability on working at 75% of the merged capacity?

17. The ABC Company Ltd., is considering the purchase of a new machine. 2 option machines (X and Y) have been suggested every costing Rs. 2,00,000. Earnings after taxation are expected to be as follows
Year Cash Flows

Machine X Machine Y

Rs. Rs.


1 20,000 60,000


2 60,000 80,000


3 80,000 1,00,000


4 1,20,000 60,000
5 80,000 40,000


The company has a target of return on capital of 10% and on this basis you are needed to compare the profitability of the machines and state which option you consider financially preferable.

18. From the subsequent info prepare a schedule of modifications in working capital and funds flow statement for Konark Ltd., for the year ended 31.3.2003.

Balance Sheet

Liabilities As at As at Assets As at As at

31-3.2003 31.3.2002 31.3.2003 31.3.2002
Share Fixed

capital 5,00,000 4,00,000 Assets 3,10,000 3,00,000
Reserve and Investments 15,000 -

Surplus 1,50,000 50,000 Cash and
Secured loans 3,50,000 4,00,000 Bank 25,000 12,500
Current Closing
Liabilities 5,00,000 6,00,000 stock 7,50,000 7,87,500
Sundry
debtors 4,00,000 3,50,000

15,00,000 14,50,000 15,00,00014,50,000


(a) The net profit for the year after adjustment in respect of provisions for dividends, taxation was Rs. 1,00,000.

(b) There was additions to fixed assets during the year amounting to Rs. 40,000 and depreciation for the year was Rs. 30,000.

Earning:   Approval pending.