Download JNTUK (JNTU-Kakinada) MBA New folder R16MBA401 Cost And Management Accounting Question Paper.
Subjt Code: R16MBA401
MBA - IV Semester Regular Examinations, April - 2018
COST AND MANAGEMENT ACCOUNTING
Time: 3 hours Max Marks: 60
Question Paper Consists of Part-A and Part-B.
Answering the question in Part -A is Compulsory & Four Questions should be answered from Part-B
All questions carry equal marks of 12.
PART-A (CASE STUDY)
I X 12 = 12
1. A Manufacturer of 'X' product makes an average profit of Rs. 2.50 per pie on a selling price of Rs.
14.50 by producing 60000 pies at 60% production capacity. His cost of sales per pie is:
- Dirt materials Rs. 4.00
Dirt wages Rs. 1.00
- Factory over heads(variable) Rs. 3.00
- Sales overheads(variable) Rs .0.25
- Total fixed cost Rs. 225000
During current period, he intends to produce the same number of units but anticipates that
a) Fixed cost will go up by 10%
b) Material and labour cost go up by 5%
Under these circumstances, he obtains an offer for a further 20% of his capacity. What minimum price you
would rommend for acceptance to earn an overall profit of Rs.160000
PART-B
4X 12 = 48
2. (a) Explain briefly the role of accounting information in planning and control.
(b) Explain any four cost concepts with their managerial uses.
3. ABC company Ltd., supplies the following information and requires you to prepare a cost sheet:
Amount (Rs)
1) Stock of raw materials as on 1-9 -2006 75000
2) Stock of raw materials as on 30-9-2006 91500
3) Dirt wages 52500
4) Indirt wages 2750
5) Sales 200000
6) Work in process as on 1-9-2006 28000
7) Work in progress as on 30-9-2006 35000
8) Purchase of raw materials 66000
9) Factory rent, rates and power 15000
10) Depriation of Plant & machinery 3500
11) Carriage out ward 2500
12) Advertising 3500
13) Office rent & taxes 2500
14) Stock of finished goods as on 1-9-2006 54000
15) Stock of finished goods as on 30-9-2006 31000
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Subjt Code: R16MBA401
MBA - IV Semester Regular Examinations, April - 2018
COST AND MANAGEMENT ACCOUNTING
Time: 3 hours Max Marks: 60
Question Paper Consists of Part-A and Part-B.
Answering the question in Part -A is Compulsory & Four Questions should be answered from Part-B
All questions carry equal marks of 12.
PART-A (CASE STUDY)
I X 12 = 12
1. A Manufacturer of 'X' product makes an average profit of Rs. 2.50 per pie on a selling price of Rs.
14.50 by producing 60000 pies at 60% production capacity. His cost of sales per pie is:
- Dirt materials Rs. 4.00
Dirt wages Rs. 1.00
- Factory over heads(variable) Rs. 3.00
- Sales overheads(variable) Rs .0.25
- Total fixed cost Rs. 225000
During current period, he intends to produce the same number of units but anticipates that
a) Fixed cost will go up by 10%
b) Material and labour cost go up by 5%
Under these circumstances, he obtains an offer for a further 20% of his capacity. What minimum price you
would rommend for acceptance to earn an overall profit of Rs.160000
PART-B
4X 12 = 48
2. (a) Explain briefly the role of accounting information in planning and control.
(b) Explain any four cost concepts with their managerial uses.
3. ABC company Ltd., supplies the following information and requires you to prepare a cost sheet:
Amount (Rs)
1) Stock of raw materials as on 1-9 -2006 75000
2) Stock of raw materials as on 30-9-2006 91500
3) Dirt wages 52500
4) Indirt wages 2750
5) Sales 200000
6) Work in process as on 1-9-2006 28000
7) Work in progress as on 30-9-2006 35000
8) Purchase of raw materials 66000
9) Factory rent, rates and power 15000
10) Depriation of Plant & machinery 3500
11) Carriage out ward 2500
12) Advertising 3500
13) Office rent & taxes 2500
14) Stock of finished goods as on 1-9-2006 54000
15) Stock of finished goods as on 30-9-2006 31000
Page 1 of 2
4. (a) What is a limiting factor? Explain
(b) The following information is extracted from the rords of XYZ company.
Particulars (per unit)
Product A Product B
- Sales (Rs.) 50.00 60.00
Consumption of material(qty) 1 kg 1.50 kg
Material cost (Rs) 5.00 7.50
Dirt wages cost (Rs) 7.50 5.00
Dirt expenses cost (Rs) 2.50 3.00
Overhead expenses (Rs)
- Fixed 2.50 3.00
- Variable 7.50 10.00
Assuming that raw material is the limiting factor workout which product is profitable.
5. (a) What are the limitations of Break-even analysis?
(b) Sales were 150000 producing a profit of Rs.20000 in a week. In the next week sales amounting to
Rs.200000 affted producing a profit of Rs. 40000. Find out break even point(BEP)
6. The following data are available in a manufacturing company for a yearly period:
Fixed expenses: Rs. In Lakhs
Wages and Salaries 9.5
Rent, rates and taxes 6.6
Depriation 7.4
Sundry administration expenses 6.5
Semi-variable expenses:
Maintenance and repairs 3.5
Indirt labour 7.9
Sales department salaries, etc. 3.8
Sundry administration salaries 2.8
Variable expenses:
Materials 21.7
Labour 20.4
Other expenses 7.9
Total cost 98.0
Assume that the fixed expenses remain constant for all levels of production.
Semi-variable expenses remain constant between 45% to 65% of capacity, and It increases
by 10% between 65% to 80% capacity, and It increase by 20% between 80% to 100% capacity.
Sales at various levels are:
50% capacity Rs.100 Lakhs 90% capacity Rs. 180 Lakhs
60% capacity Rs.120 Lakhs 100% capacity Rs. 200 Lakhs
75% capacity Rs.150 Lakhs
7. a) what is standard cost and standard costing? Explain?
b) write short notes on material variance?
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This post was last modified on 18 November 2019