Acharya Nagarjuna University (ANU) 2006 B.Com Part II - Commerce, III - ADVANCED MANAGEMENT ACCOUNTING - - Question Paper

B.Com. DEGREE EXAMINATION, DECEMBER 2006
(Examination at the end of Final Year)
Part II - Commerce
Paper III - ADVANCED MANAGEMENT ACCOUNTING

Time : 3 hours Maximum : 100 marks

part A - (4 X five = 20 marks)
ans any 4 of the subsequent ques..

1. elaborate the duties and responsibilities of a management accountant?

2. explain management info system.

3. discuss the objectives and advantages of budgetary control.

4. State the need for working capital.

5. Write the advantages of funds flow statement.

6. explain the importance of P/V ratio with examples.

7. discuss the meaning and significance of variance analysis.

8. Why cash flow statement is provided more importance than funds flow statement?

part B - (2 X 10 = 20 marks)
ans any 2 ques..
All ques. carry equal marks.

9. Prepare a flexible overhead budget for levels of output of 20,000 ; 24,000 and 32,000 units respectively. The standard level of activity has been set at 28,000 units. Total overheads incurred at this level would be Rs.42,000 of which variable overheads would be Rs.1.20 per unit. You are needed to show

(a) The budgeted total overheads incurred
(b) The overheads incurred per unit manufactured
(c) The budgeted overheads absorbed per unit manufactured
(d) The budgeted total overheads absorbed.

10. From the subsequent info you are needed to obtain out:
(a) Contribution (b) Break-even point in units
(c) Margin of safety and (d) Profit.

Rs.
Total fixed costs 4,500
Total variable costs 7,500
Total sales 15,000
Units sold 5,000

11. XYZ Ltd. has achieved a turnover of Rs.85 crores for the accounting year 2004-05. It is anticipated that the turnover of the company will reach Rs.110 crores for the year 2005-06. The financial position of the company as on 31st March, 2005 is as follows:
Liabilities Rs. in crores Assets Rs. in crore
Equity share capital 10 Land and Buildings 4
Reserves and surplus 4 Plant and Machinery 5
Secured loans 5 Inventories 11
Unsecured loans 3 Receivables 7
Sundry creditors 6 Cash and Bank 3
Provision for taxation 2

30 30

Estimate the working capital requirement for the year 2005-2006.

12. From the subsequent information, calculate:

(a) Material cost variance
(b) Material price variance, and
(c) Material usage variance.
Standard output 100 units
Standard material per unit 3lb
Standard price per lb Rs.2
true output 80 units
true price Rs.2.50
true materials used 250 lb

Earning:   Approval pending.