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Total No. of Pages : 4

Register Number : 5704
Name of the Candidate :

B.B.A. DEGREE EXAMINATION MAY 2014.

(THIRD YEAR)

(PART III)

310 MANAGEMENT ACCOUNTING

(Common with DD)

Time : Three hours Maximum : 100 marks

SECTION A
Answer any TEN questions. (10 2 = 20)
All questions carry equal marks.

1. Write short notes on any TEN :

(a) Management Accounting
(b) Management Accounting Vs Cost accounting
(c) Importance of Capital Budgeting
(d) Net Present Value (NPV)
(e) Break Even Point
(f) Marginal costing
(g) Budget
(h) Zero Base Budget
(i) Standard costing
(j) Cost audit
(k) Index method
(l) Uncontrollable variance.

SECTION B
Answer any FOUR questions. (4 10 = 40)
All questions carry equal marks.

2. What are the objectives of management accounting?

3. Explain the limitations of break-even charts.

4. Brief out the various steps involved in installation of management accounting

system.
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5. Rubika limited is considering two projects. Each requires an investment of

Rs. 10,000. The net cash inflows form investment in the two projects X and Y
are as follows.
Years 1 2 3 4 5 6
X(Rs.) 5,000 4,000 3,000 1,000
Y (Rs.) 1,000 2,000 3,000 4,000 5,000 6,000
Rubika limited has fixed three years pay-back period as the cut-off point.
Which project is better?

6. Calculate material variances.

Material Std. price per Std. mix for 1200 Actual Actual price per
kg tiles usage kg
A 5 1,200 1,200 7
B 9 600 6,000 6
Actual output 1,00,000 tiles.

SECTION C
Answer any TWO questions. (2 20 = 40)
All questions carry equal marks.

7. The Dharunesh Company limited considering, purchase of a new machine. Two

alternative machines (A and B) wave been suggested, each having an initial
cost of Rs. 4,00,000 and requiring Rs. 20,000 as additional working capital at
the end of first year. Earning after taxation are expected to be as follows.
Year : 1 2 3 4 5
Cash in flows in machine A 40,000 1,20,000 1,60,000 2,40,000 1,60,000
Cash in flows in machine B 1,20,000 1,60,000 2,00,000 1,20,000 80,000
The company has a target of return on capital of 10% and on this basis. You
are required to compare the profitability of the machines and state which
alternative you consider financing preferable?
Year 1 2 3 4 5
P.V. at 10% 0.91 0.83 0.75 0.68 0.62

8. The sales turnover and profit during two years as follows :

Year Sales (Rs.) Profit (Rs.)
2012 1,40,000 15,000
2013 1,60,000 20,000
Calculate :
(a) P/V ratio
(b) Break-even point
(c) Sales required to earn a profit of Rs. 40,000
(d) Fixed expenses
(e) Profit when sales are Rs. 1,20,000.

9. Explain the advantages of budgetary control.

10. Elaborate the advantages and limitations of marginal costing.

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Y (.) 1,000 2,000 3,000 4,000 5,000 6,000

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C vmh[P Gx ]ux?

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6. [Px mi PnUQk.
{ { Es Es
P 1200 EP
(Q) Q (Q) (Q)
A 5 1,200 1,200 7
B 9 600 6,000 6

Es k 1,00,000 tiles.

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Azx UPUS \ vsP.

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B G C Cv[P Hu J AP [P. Cv
J . 4,00,000 x. US u
GvUPkQx.
Bsk : 1 2 3 4 5
Cv A 40,000 1,20,000 1,60,000 2,40,000 1,60,000
Cv B 1,20,000 1,60,000 2,00,000 1,20,000 80,000

P 10% zu Qx. Csk Cv[P P Gu

[P A T.
h 1 2 3 4 5
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8. C BskPUP C :
Bsk (.) C (.)
2012 1,40,000 15,000
2013 1,60,000 20,000

PnUQkP :
(A) [P Qu
(B) C&|mh
(C) . 40,000 C Dmh u
(D) . 1,20,000 QhUS C .

9. \ vmhU Pmkmi |P .

10. Cv {a \P |P P .

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