G 456 (Pages : 2) Reg.No….............

Name……………

M.B.A. DEGREE EXAMINATION, JULY 1998

First Semester
ACCOUNTING FOR MANAGEMENT
Time : Three Hours Maximum:60
Marks
Section A
Answer all questions
Each question carries 2 marks.
1.
(a) Define “Management Accounting”.
(b) Explain “Going concern concept”.
(c) How are the accounts classified ?
(d) Explain the convention of conservatism.
(e) What is the meaning of “Double Entry System” of accounting ?
(f) What is BEP ?
(g) What is the “Limiting Factor” ?
(h) Define Standard Costing.
(i) What is “Absorption costing” ?
(j) What are the steps in decision-making ?
(10 x 2 = 20 marks)
Section B
Answer any four questions
Each question carries 5 marks.
2. How does management accounting differ from financial accounting ?
3. What are the accounting concepts and state its limitations ?
4. Explain the difference between the Final accounts and the Trial balance.
5. What are the advantages of standard costing and state its limitations ?
6. “Marginal costing is essentially a technique of cost analysis and cost presentation.” Discuss.
7. Describe the essential steps of a budgetary control system.
(4 x 5 = 20 marks)
Section C
Each question carries 10 marks.
8. (a) What is meant by break-even analysis ? Discuss the assumptions and the limitations of this technique.
Or

Turn over
2 G 456

(b) Prepare a Trial Balance from the following transactions taken from the books of Kumar and
Company: -
Rs.
1.3.1995 Purchased goods for … 60,000
6.3.1995 Sold goods to Sundar … 10,000
10.3.1995 Paid rent … 5,000
20.3.1995 Purchased furniture for … 4,000
25.3.1995 Received Commission … 1,000
30.3.1995 Paid for postages … 100
9. (a) Describe briefly the different methods of costing.
Or
(b) From the following particulars, calculate: -
i. BED in terms of sales value and in units.
ii. Number of units that must be sold to earn a profit of Rs.90,000.
Rs.
Fixed factory overheads … 60,000
Fixed selling overheads … 12,000
Variable manufacturing cost/unit … 12
Variable selling cost/unit … 3
Selling price per unit … 24
(2 x 10 = 20 marks)