Veer Bahadur Singh Purvanchal University 2009-3rd Sem B.B.A Business Administration .>>ester>>Cost and Management Accounting - Question Paper

Time:Three Hours]
[Maximum Marks:70
Subject-Cost and Management Accounting

Note: ans any 5 ques.. All ques. carry equal marks.

1."Major policy decisions in business are based on cost factors." Comment on the possible uses of cost info to management.

2.From the subsequent data, compute material-mix variance. Also compute price and usage variance:
Raw Material Standard
X 40 Units@Rs.50 per unit
Y 60 units@Rs.40 per unit
Total 100 units

Raw Material true
X 50 units@Rs.50 per unit
Y 60 units@Rs.45 per unit
Total 110 units

3.Explain any 3 classifications of cost. What purpose does every of these classifications serve?

4.A company has a P/V ratio of 40%. By what percentage must sales be increased to offset-
(a) 10% reduction in selling price;
(b) 20% reduction in selling price?

5.From the subsequent data, compute the break-even point:
Direct material per unit-Rs 3
Direct labour per unit-Rs 2
Fixed overhead (total)-Rs 10,000
Variable overhead-100% on direct labour
Selling price per unit-Rs 10
Trade Discount-5%
Also determine the net profits, if sales are 10% above the break-even point.

6.What is sales budget? Enumerate the factors that are taken into account at the time of preparing a sales budget. Prepare a sales budget using imaginary figures.

7.A company is expecting to have Rs 25,000
cash in hand on first April, 2007. You are needed to prepare cash budget for the 3 months April to June, 2007. The subsequent info is supplied to you:
---------SalesRs.----PurchaseRs.----Wages Rs.----Expanses Rs.
February-70,000------40,000----------8,000---------6,000
March----80,000------50,000----------8,000---------7,000
April----92,000------52,000----------9,000---------7,000
May----1,20,000------60,000---------10,000---------8,000
June---1,20,000------55,000---------12,000---------9,000

--other information:
(a) Period of credit allowed by suppliers is 2 months.
(b) 25% of sale is for cash and the preiod of credit allowed to customers for credit sales is 1 month.
(c) Delay in payment of wages and expanses 1 month.
(d) Income tax Rs 25,000 is to be paid in June, 2007.

8.What are the guiding principles relation to the preparation of management reports?

9.Discuss the nature and scope of Management Accounting and distinguish it from Financial Accounting.

10.Explain 'break-even point'. explain the utility of break-even analysis and show its limitations.

Earning:   Approval pending.