Date of Exam:27/04/2018

RMB 205
(Following Paper ID and Roll No. to be filled in your Answer Book)

PAPER ID : 00000 Roll No.

BORA INSTITUTE OF MANAGEMENT SCIENCES

M.B.A.
(SEM. II) SECOND SESSIONAL TEST (2017-18)
Management Accounting & Control
Time: 3 Hour Total Marks: 70

Note:(1) The question paper contains three sections A, B, and C.

(2) Instructions are mentioned under all section.

Section- A

1. Attempt all questions (7x2=14)

a. Enumerate two applications of marginal costing.
b. What are the various elements of cost?
c. Define zero-based budgeting.
d. What is Cost centre and Profit centre?
e. Define Margin of safety.
f. Explain the Activity based costing.
g. What is contribution?

Section- B
2. Attempt any five of the following questions (5x7=35)

a) What do you understand by Management Accounting?

Differentiate it with Financial accounting.
b) What is Budgetary control? Also enumerate the various budgets
prepared by firms.
c) What do you understand by Variance analysis? Discuss various
types of variances.
d) Explain marginal costing? Also discuss various application of
marginal costing for effective decision making.
 Date of Exam:27/04/2018

e) What is meant by standard costing? Explain its uses and c) Following is the data pertaining to a job schedule to be
limitations. completed in 30 weeks:
f) Explain the concept of transfer pricing. Give in brief various Category of No. of Weekly No. of Weekly
methods of transfer pricing. Workers Labourers wage rate Labourers wage
g) Explain CVP with its assumptions and techniques. (Standard) per Labour (Actual) rate per
h) Sale of a product amounts to 200 units per month at Rs.10 per unit. (Standard) Labour
Fixed overhead is Rs. 2 per month and variable cost Rs. 6 per unit. (Actual)
There is a proposal to reduce prices by 10%. Calculate present and Skilled 80 50 75 40
future P/V ratio. Semi-Skilled 50 40 40 45
Unskilled 55 60 60 50
Section- C Actual time taken is 45 weeks. Calculate various labour
2. Attempt any two of the following questions (2x10.5=21) variances.
a) Prepare a Cost sheet for January 2017 from the information
provided for a product.
Particulars Rs.
Raw material consumed 91,000
Direct wages 29,000
Other direct Expenses 11,000
Factory overheads 80% of direct wages
Office overheads 10% of Works cost
Selling and distribution Expenses Rs. 2 per unit Sold
Units produced and sold during the month 10,000
There was no stock or work-in-progress either at the beginning or
at the end of the period. Find the selling price per unit on the basis
that profit mark-up is uniformly made to yield a profit of 20% of
the selling price.
b) The turnover and profits of the two years were as follows:
Particulars Sales Profit/Loss
1st year 8,000 units 15,000 Loss
nd
2 year 10,000 units 15,000 Profit
The selling price per unit is Rs. 120.
Calculate:
 P/V ratio
 Fixed Cost
 Sales at Break-even Point
 The number of units to be sold to earn a profit of
Rs. 45,000.
 Profit when sales are 30,000 units.