June – 2021
B.Com. (VI Semester) Examination
Commerce
Paper: BCM-602 (Gr-C) (New Course)
(Management Accounting)
Full Marks : 80
Pass Marks : 35%
Time : Three Hours
Notes: (i) Answer all questions as per the instructions given in each section.
(ii) The figures in the margin indicate full marks for the questions.
Section-I
1. Answer all questions from the following: 2X5= 10
a) Define the term Management Accounting.
b) What do you mean by Standard Costing?
c) What do you mean by Margin of Safety?
d) Distinguish between Budget and Budgeting?
e) What do you mean by variance?
Section-II
2. Answer any four of the following questions: 5X4= 20
a) Distinguish between Financial Accounting and Management Accounting
b) Classify the ratios on the basis of Statements, users and functions.
c) Write a note on zero base Budgeting.
d) Discuss the nature and scope of Management Accounting in brief.
e) What do you mean by Ratio? Discuss the limitations of Ratio analysis.
f) Distinguish between Standard Cost and Historical Cost.
g) Write a note on ‘Types of Budgets’.
Section-III
3. Answer any five of the following questions: 10X5= 50
a) (i) The sales turn over a Project during the two years were as follows:
Sales (Rs.) Profit (Rs)
Ist year Rs. 2 Lakh Rs. 20,000
IInd year Rs. 3 Lakh Rs. 40,000
Calculate (i) P/V ratio.
(ii) Fixed cost.
(ii) Sales 10000 units @ Rs. 25 per unit.
Variable cost Rs. 15 per unit.
Fixed cost Rs. 100,000
Find out the (i) B.E.P
(ii) Required sales for
costing a project of Rs. 50,000/-
b) From the following details find out
(a) Current Assets.
(b) Current Liabilities.
(c) Liquid Assets.
(d) Stock.
Current Ratio: 3.5
Liquid Ratio : 2.5
Working Capital Rs. 100000/-
c) XYZ Ltd wishes to arrange overdraft facilities with its Bankers during the period April to June, 2021 when it will be manufacturing most for stock. Prepare a cash Budget for the above period from the following date:
Months Sales Purchase Wages
February 180,000 124800 12000
March 192000 144000 14000
April 108000 243000 11000
May 174000 246000 10000
June 126000 268000 15000
i) 50% of Credit Sales are realized in the month of following sales and remaining 50% in the second month following.
ii) Credits are paid in the month of following the month of purchase.
iii) Assume all sales and purchases are made on credit.
iv) Wages are paid on the first very next month.
v) Cash at bank on 01.04.2021 Rs. 25,000.
d) Calculate (i) Material Cost Variance (MCV)
(ii) Material Price Variance (MPV)
(iii) Material Mix Variance (MMV)
From the following Information:-
Material Standard Actual
A 90 Units @ Rs. 12 each 100 Units @ Rs. 12 each
B 60 Units @ Rs. 15 each 50 Units@ Rs. 16 each
e) Define Budgetary Control. What are the advantages and limitation of Budgetary Control?
f) What do you mean by Break Even Chart? Construct a Break Even Chart with imaginary figures.
g) The expenses budgeted for Production of 10000 units in a factory are given below:-
Material - Rs. 70 per unit.
Labour - Rs. 25 per unit
Variable Overhead - Rs. 20 per unit.
Fixed overhead (Rs. 100000) - Rs. 10 per unit.
Variable overhead (Direct) - Rs. 5 per unit.
Selling expenses (10% fixed) - Rs. 13 per Unit.
Administration expenses (Rs.5000) – Rs. 5 per Unit (Fixed)
Distribution Expenses (20% fixed) -Rs. 7 per unit.
_____________
Rs. 155 per Unit
Prepare a budget of the Production
(a) 8000 Units
(b) 6000 Units.
Assume that the Administration expenses are rigid for all
level of production.
