Madras University (UnOM) 2008 M.B.A Business Administration Management Accounting (IDE) - Question Paper

Tuesday, 13 August 2013 07:15Web

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MAY 2008 P/ID 37504/PBA"

Maximum: 80 marks

Time: Three hours

PART A (5 x 5 = 25 marks)

Answer any FIVE questions.

AH questions carry equal marks.

1. How is a contract costing different from job costing?

2. What are the basic objectives for compiling a Statement of Sources and Applications of Fund?

3. What is Break-cven-Analysis? Discuss (a) the assumptions (b) uses, and (c) limitations of this technique.

4. What do you understand by the term Accounting reports? When can a report be said to be an ideal report?

5. Discuss the nature and objects of Financial Statements. What are its limitations?

6. Explain the different typos of financial analysis. Distinguish between horizontal and vertical analysis.

7. 'Despite all limitations of the methods of Pay Back Period, it has still significance¹ in project appraisal. Expluin.

8. Explain the nature and objectives of budgetary control.

PART B {4 x 10 s 40 marks)

Answer any FOUR questions.

All questions carry oqual marks.

9. Enumerate the utility and limitations of Ratio Analysis.

10. Discuss the uses of Management Accounting as a tool in (a) decision making and (b) exercising control.

11. Explain the meanings of marginal' cost and marginal costing. Discuss its usefulness and limitations.

12. Ratios are meaningless if detached from the details from which they are derived¹. Comment and bring out the limitations of ratio analysis.

13. Expluin the differences between financial accounting and management accounting.

14. I>iscu$s the methods used for evaluating and ranking investment proposals. Make a comparative study of the Internal Kale of Return" approach with the Net Present Value approach in choosing u capita] expenditure project.

PART C<15 marks)

(Compulsory Question)

15. The capital budgeting department of a company has suggested three investment proposals. The after tax cash flows for cach are tubulated below. If the companys coBt of capital is 12%, rank them in order of profitability.

After tax cash in flows