Spring 2011(Feb-July)

Bachelor of Business Administration - BBA Semester 3 Subject Code BB0012 Subject Name Management Accounting 4 Credits
(Book ID: B0093)

Assignment Set- 1 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Explain why management accountant role is critical in an organizational setup? [10 Marks] Q.2 From the following data of Jagdish Company prepare (a) a statement of source and uses of working capital (funds) (b) a schedule of changes in working capital Assets Cash Short-term investment Debtors Stock Long term Investment Machinery Building Land Total Liabilities and Equity Accumulated depreciation Creditors Bills Payable Secured loans Share capital Share premium Reserves and surplus Total 2008 1,26,000 42,400 60,000 38,000 28,000 2,00,000 2,40,000 14,000 7,48,400 1,10,000 40,000 20,000 2,00,000 2,20,000 24,000 1,34,400 7,48,400 Income statement 2,40,000 1,34,600 1,05,200 2007 1,14,000 20,000 50,000 28,000 44,000 1,40,000 80,000 14,000 4,90,000 60,000 30,000 10,000 1,00,000 1,60,000 Nil 1,30,000 4,90,000

Sales Cost of goods sold Gross Profit

Spring 2011(Feb-July)

Less Operating expenses: Depreciation machinery Depreciation building Other expenses Net profit from operation

20,000 32,000 40,000

92,000 13,200 4,800 18,000 2,000 16,000

Gain on sale on long-term investment Total Loss on sale of machinery Net Profit

Adjustments: 1) Machinery worth Rs.70000 was purchased and worth Rs.10000 was sold during the year [Accumulated depreciation on machinery is Rs.18000 after adjusting depreciation on machinery sold]. Proceeds from the sale of machinery were Rs.6000 Dividends paid during the year Rs.11600 [10 Marks] Q.3 Explain why cash flow statement is more beneficial than funds flow statement [10 Marks] Q.4 Q.5 Explain step cost, fixed, variable, and semi-fixed costs. [10 Marks]

For XYZ Co, the following particulars have been extracted for the year 2005:

Cost of Materials Wages Factory Overheads Administrative charges Selling charges Distribution charges Profit

6,00,000 5,00,000 3,00,000 3,36,000 2,24,000 1,40,000 4,20,000

A work order has to be executed in 2006 and the estimated expenses are :Material Rs.8,000; Wages Rs.5,000 Assuming that in 2006 the rate of factory overheads has gone up by 20%; distribution charges have gone down by 10% and selling and administrative charges have gone each up by 15% at what price shold the product be sold so as to earn the same rate of profit on the

Spring 2011(Feb-July)

selling price as in 2005. Factory overheads are based on wages and administration, selling and distribution overheads on factory cost. Q.6 What are the elements of variance analysis [10 Marks] [10 Marks]

Bachelor of Business Administration - BBA Semester 3 Subject Code BB0012 Subject Name Management Accounting 4 Credits
(Book ID: B0093)

Assignment Set- 2 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 A company has three production departments and two service departments. The

departmental distribution summary for a particular period has the following totals. You are required to compute the total share of overheads of the service departments to be distributed to production departments: Production Department: (P1 Rs.800; P2-Rs.700; P3- Rs.500 Service department: S1-Rs.234; S2-Rs.300 Rs.534 Rs.2,000

The expenses of service departments are charged out on a percentage basis as follows:

Spring 2011(Feb-July)

P1 S1 S2 20% 40%

P2 40% 20%

P3 30% 20%

S1 20%

S2 10% [10 Marks]

Q.2 Distinguish between job costing and contract costing. Q.3

[10 Marks]

A product passes through three distinct processes A,B and C. The normal loss of

units in each process is 5%, 10% and 15% and the same is sold at Rs.2, Rs.4 and Rs.5 per unit respectively. Expenses for the month were as follows: Process A Sundry Materials Wages Actual output in unit 5,200 4,000 1,900 3,960 6,000 1,680 B 5,924 8,000 1,500 C

2000 units @ Rs.3 per unit were put into Process A. The total overheads are Rs.18,000 which are to be recovered at 100%of wages. Prepare necessary Process a/cs [10 Marks] Q.4 Q.5 Q.6 Explain joint products and by-products Explain break even chart and bring out the advantages of B.E.Chart Explain various types of budgets [10 Marks] [10 Marks] [10 Marks]