Nr 302 Mba Cost And Management Accounting

NR Code No: NR-302/MBA M.B.A. III-Semester Examinations, December-2007. COST AND MANAGEMENT ACCOUNTING Time: 3 hours

1.

Max. Marks: 60

Answer any FIVE questions All questions carry equal marks --What are the functions of management accountant and show how he helps while decision-making at the top level.

2.

From the following information work out the production hour rate of recovery of overhead in departments P1, P2 and P3. Rupees Service Production Departments Departments Particulars Total P1 P2 P3 S1 S2 Rent 1,000 200 400 150 150 100 Electricity 200 50 80 30 20 20 Fine insurance 400 80 160 60 60 40 Plant depreciation 4,000 1,000 1,500 1,000 300 200 Transport 400 50 50 50 100 150 Hours 1,000 2,500 1,800 Expenses of Service Departments S1 and S2 are apportioned as under: P1 P2 P3 S1 S2 __ S1 30% 40% 20% 10% S2 10% 20% 50% 20% __

3.

From a natural material four products are synthesized - three in a crude state and one as a by-product. The crude products are further refined which costs Rs. 2.00, Rs. 1.6 and Re. 1.00 per kg of output respectively. The selling prices are fixed at Rs.6.00, Rs. 4.50, Rs. 3.50 and Re. 0.50 per kg. respectively to a yield a profit margin of 20 per cent on selling price. During a costing period the production of these four products is 8,000 units, 5,000 units and 6,000 units of the refined products and 2,000 units of the by-product. Find the actual profitability of each refined product as a percentage on the selling price, if the joint costs total Rs. 50,800. Contd….2

Code No: NR-302/MBA

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4.

State the circumstances in which contribution approach to price is most suitable. If this approach is adopted, what are the special items of cost or revenue that have to be considered when quotation for an export order is made?

5.

The following information is taken from the records of a Company Sales Rs.60,000 Variable cost Rs.30,000 Fixed Cost Rs.15,000 You are required to calculate; (a) P/V ratio, Break even point and margin of safety at this level (b) Calculate the effect of 10% increase in sale price (c) Calculate the effect of 10% decrease in sale price

6.

What are different types of budgets? Explain their uses.

7.

“Marginal costing is an administrative tool of management to achieve higher profits”. Discuss.

8.

What are comparative statements? Sate the usefulness of these statements in inter firm comparison. ---