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PaperID [M8103]
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MBA (Sem. - 1") ACCOUNTTNG FOR MANAGEMENT (MB-103) Time : 03 Hours Instruction to Candidates: 1) 2) Section- A is Compulsory. Attempt any Four questionsfrom Section- B. Section - A QI) (10x2=20) a) "The emphasisof financial accountingis different from that of Cost Accounting". Comment. b) Explain the steps(in sequence form) involved in the accountingcycle. c) "Depreciationis an important sourceof funds (working capital)". Do you agree.Justify your answer. d) What do you mean by Cash Flow Statement? e) "Fixed Costs are really variabie.The more you producethe less they become". Do you agree? Expiain. 0 Distinguish betweenMaterials Price Variance and Materials Usage Variance. Maximum Marks : 60

g) During the currentyear,AB Ltd. showeda profit of Rs.1,80,000 a on sale of Rs.3O00,000. The variableexpenses were Rs.21,00,000. You are requiredto work out: (i) Break-even salesat present (ii) Break-even sales, variableexpenses if increase 5 percent. by

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h ) . What.art-rhe'pdirits-of siririilrlty ahd'pitlhtr of difference between

budgetsand standardcosts?
i)

of Define Human ResourceAccounting.Enlist the advantages Human Accounting. Resource How does Activity BasedCostingdiffer from the traditionaicosting approach?

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Section - B (4x10=40) from the booksof Ravi. prepare Q2) From the following Trial Balanceextractecl a Trading Account, Profit and Loss Account for the year ending 3 tst March, 2006 and a BalanceSheetas on that date. IJr" (Rs.) Capital Drawings Plant & Machinery Horses& Carts Debtors Creditors & Purchases Sales Wages Cash at bank Salaries Repairs OpeningStock Rent Manufacturing Expenses Bills Payable Bad Debts Carriage

Cr. (Rs.)

1,700 12,ii00 2,6ACI 3,600 2,404 800 2.600 800 190 1,600 450 15t) 500 160 2.600 4,240

2,350

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The foilor,vingadjustinents to be madb: are ( a ) C l o s i n gS t o c kR s . 1 , 6 0 0 . (b) Depreciate Plant and Machinery- lATo;Horses& carts- 157a (c) Allow intereston capitalat 57op.a. fd) Rs.150is due for wages (e) Paid Rs.50as Rent in advance. for userJ analysis interpretation and Q3) Explain.in detail,the differentmethods of financialstatements. of Q4) The follorving irrforinationwas takenfrom the financial statements XYZ Ltd. (anrountin thousand rupees) of Particulars Total Assets CreditSales Cost of GoodsSold Cash Debtors Inventory Net Fixed Assets Creditors Short-terrnDebt Long-termDebt liquity Year 1 Y ear2 Ycar 3

750 420 450 50 150 130 120 75 125 125 t25

850 520 595 60 165 160 264 85 175 185 200

860 550 645 55 180 170 250 100 t70 175

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Calculatelbllowing ratios (indicatingefficient use of assets) and discuss potentialsources trouble. of (a) CurrentAssetsTurnover (b) Debtors' 'furnovet (c) Inventory Turnover (d) Fixed AssetsTurnover (e) Total AssetsTurnover Note: Debtors and Inventory at the end can be taken where opening bala:rccs not availatrle. are

in of QS) Discuss detail.the variousbasisof classification cost and various typesof cost.

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sell 10 differentstyles The stores a Q6) XYZ Ltd. operates chainof shoestores. Thecompany purchase andsellingprices. costs with identical of men'sshoes the is trying to determine desirabilityof openinganotherstore,which would per relationships pair. and revenue have the following expense Variable data: SellingPrice Cost of shoes Commission Salesmen's Total VariableExpenses Annual Fixed Expenses: Rent Salaries Advertising Other Fixed Expenses Total Fixed Expenses

Rs. 30.00 19.50 1.50 21.00 Rs. 60,000 2,00,000 80,000 20,000 3,60,000

eachquestionseparately) the Requiredto calculate following. (consider (a) What is the Annual Break-E,ven Point in salesamount and in unit sales? (b) If 35,000pairs of shoesare sold, what would the store'snet income be'? what (c) If the storemanagerwas paid Rs.0.30per pair as commission, would the annual break-evenpoint be in salesamount and in unit sales? (d) Ref'erto the original data.If the storemanagerwas paid Rs.0.30per point, of pair as commission eachpair sold in excess the break-even on what would be the store'snet incomeif 50,000pairs were soid? in (e) Refer to the original data.If salescommissions were discontinued what would the annual in increase fixed salaries, favour of Rs.81,000 point be in amountand in unit sales? break-cven 87) centre.Why are responsibilitycentrescreated? Define a Responsibilit"v" centres. Explain the variouskinds of responsibility

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