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B.Com (VI Semester) Examination
COMMERCE
Paper : BCM–602 Group—C (New Course)
( Management Accounting )
Full Marks : 80
Pass Marks : 35%
Time : Three Hours
Note : 1. Answer all the questions as per the instructions in each Section.
2. The figures in the margin indicate full marks for the questions.
Section—I
1. Answer any five questions of the following : 2×5=10
(a) What is budget?
(b) Define margin of safety.
(c) Give two points of difference between Financial Accounting and Cost Accounting.
(d) If contribution is Rs 40,000 and sales is Rs 60,000, find out the value of variable cost.
(e) What is standard cost?
(f) What is flexible budget?
(g) List out two uses of P/V ratio.
Section—II
2. Answer any four questions of the following : 5×4=20
(a) Define standard costing. Distinguish it from marginal costing.
(b) What is variance? Explain the material variances.
(c) What are the limitations of standard costing?
(d) Explain the objectives of budgeting.
(e) If current ratio is 2:1 and current liabilities are Rs 1,25,000, find out the value of current assets.
(f) Give graphic presentation of BEP.
(g) What is labour variance? Explain its uses.
(h) Explain various types of overhead variance.
Section—III
3. Answer any five questions of the following : 10×5=50
(a) “Management Accounting is mainly concerned with decision-making process.” Elaborate this statement in the light of scope of Management Accounting.
(b) What is zero-base budgeting? Discuss its advantages for a business concern.
(c) Distinguish between fixed budget and flexible budget.
(d) From the following data, calculate—
(i) BEP expressed in amount of sales in rupees;
(ii) the number of units to be sold to earn a profit of Rs 1,20,000 p.a.;
(iii) P/V ratio :
(e) Calculate material price variance, material usage variance and material cost variance from the following information :
Calculate—
(i) debt-equity ratio;
(ii) quick ratio;
(iii) current ratio.
(g) Explain in detail the uses and shortcomings of budgetary control.
(h) What is solvency ratio? How is it calculated?
(i) Explain in detail about material mix variance.
