B.Com-B.Com Accounting and Finance 3rd Year (Calicut University, Kozhikode (Calicut), Kerala-2011)

FINAL YEAR B.Com. DEGREE EXAMINATION, JULY 2011
Paper XII-MANAGEMENT ACCOUNTING

Time: Three Hours                                                                                                                                                                 Maximum: 80 Marks

Section A

Answer any ten questions.

Each question carries 1 mark.

1. What are liquidity ratio?
2. What is Funds flow statement?
3. What do you mean by contribution?
4. What do you mean by Budget key factor?
5. What is payoff period?
6. What is MIS?
7. What is Intra-firm Comparison?
8. What is Acid Test Ratio?
9. Define Current Assets.
10. What do you mean by Owners Equity?
11. What is Capital Budgets?
12. What are the implications of Activity ratios?(10 x 1 = 10 marks)

Section B

Answer any ten questions.
Each question carries 4 marks.
13. What are the limitations of Financial Statement analysis?
14. What are the assumptions in marginal costing?
15. What do you mean by Budget key factor? How do you determine it?
16. Distinguish between funds flow statement and income statement.
17. What are the different types of Financial Analysis?
18. Explain the relationship between Management Accounting and Financial Accounting.
19. What are the steps to be taken for installing Management Accounting system?
20. If current liabilities are 30,000, current ratio 2.25 times and liquid ratio 1.25 times, calculate current assets, liquid assets and stock in trade
21. Ganga Yamuna Ltd., reported profit of Rs. 12,50,000 for the year ended 31st March 2009 after considering the following:
Rs.
Depreciation on Building 35,000
Depreciation on Plant and machinery 75,000
Depreciation on Furniture 18,000
Amortization of Goodwill 12,000
Loss on sale of machinery 20,000
The current assets and liabilities on the beginning and at the end of the year are given below:
Particulars 31-3-2008 31-3-2009
Accounts Receivable 38,000 42,000
Stock on hand 75,000 68,000
Cash on hand 18,000 32,000
Accounts payable 34,000 32,000
Expenses payable 7,000 10,000
22. From the following information, ascertain by how much the value of sales must be increased b the company to break-even:
Rs.
Sales ... 3,00,000
Fixed cost 1,50,000
Variable Cost ... 2,00,000
23. The standard quantity of material and standard price per kg. of material required for the production of one unit of product P is as
follows:
Material 5 kg, Standard Price Rs. 15/ kg. The actual production and related material data are follows:
Product P-400 units
Materials used- 2,200 kgs.
Price of Materials- Rs. 14.40.
Calculate: 
(i) Material Cost Variance.
(ii) Material usage Variance.
(iii) Material Price Variance.
24. The income statement of a concern are given for the year ending 31st March 2007 and 2008 Rearrange the figures in a comparative
form:
Items 2007 (Rs.) 2008 (Rs.)
Net Sales 15,70,000 18,00,000
Cost of goods sold 9,00,000 10,00,000
Operating Expenses:
General and Administrative Expenses 1,40,000 1,44,000
Selling expenses 1,60,000 1,80,000
Non-operating expenses:
Interest paid 50,000 60,000
Income tax 1,40,000 1,60,000
(10 x 4 = 40 marks)
Section C
Answer any two questions.
Each question carries 15 marks.
25. Balance Sheet of Mis Black and White as on 1st January 2003 and 31st December 2003 were as follows:
Balance Sheet
1-1-03 31-12-03 1-1-03 31-12-03
Creditors ... 40,000 44,000 Cash . .. 10,000 7,000
Loan from Bank ... 40,000 50,000 Debtors . 30,000 0,000
Loan from White ... 25,000 - Stock . .. 35,000 25,000
Capital ... 1,25,000 1,53,000 Machinery 80,000 55,000
Land ... 40,000 50,000
Building ... 35,000 60,000
- - -
2,30,000 2,47,000 2,30,000 2,47,000
- - - 
During the year a machine Costing Rs. 10,000 (accumulated depreciation Rs. 3,000) was sold for Rs. 5,000. The provision for depreciation
against machinery as on 1-1-2003 was Rs. 25,000 and on 31-12-2003 Rs. 40,000. Net profit for the year 2003 amounted to Rs. 45,000.
You are required to prepare Funds Flow Statement
26. The following information in respect ofa Product. A and B of a firm is given:
Product A Product B
Sales Price Rs.75 Rs.48
Direct material Rs.30 Rs.30
Direct labour hours (Re. 0.50 per hour) 15 hours 2 hours
Variable Overhead - (100 % direct wages)
Fixed overheads: Rs. 3,000.
Present the above information to show the profitability of products during labour shortage.
Explain the managerial applications of Marginal Costing.
(2 x 15 =30 marks)