Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 3rd Sem 3539905 Cost And Management Accounting Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) ? SEMESTER III ? EXAMINATION SUMMER ? 2019
Subject Code: 3539905 Date:17/05/2019
Subject Name: COST & MANAGEMENT ACCOUNTING
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Marks
Q.1 Define the following terms. Each term carry two marks:-
(a) Historical Cost
(b) Financial Accounting
(c) Unit Costing
(d) Cost Centers
(e) Zero Base Budget
(f) Budgeting
(g) Variances
14
Q.2 (a) What do you mean by Management Accounting? Explain the scope of management
accounting.
07
(b) Define Activity based costing and its objectives. 07
OR
(b) Explain the techniques of the strategic management accounting in brief. 07
Q.3 (a) Define budget and budgetary control. State the advantages and limitations of
budgetary control in brief.
07
(b) What do you mean by Marginal Costing? Define characteristics of marginal
costing.
07
OR
Q.3 (a)
A medical product manufactured by Thomas Pharma, passes through three distinct
processes to completion. During a week 10000 grams of materials valued at Rs. 50000
were introduced and following expenses were incurred:-
Process A Process B Process C
Machine Expenses 5000 4000 3000
Labour 20000 30000 25000
Direct Expenses 11000 16400 4600
Normal Wastage (On
input)
5% 10% 5%
Scrap value per gram
(Rs.)
1 2 2.5
Actual Output (Grams) 9000 8000 7700
07
(b) Following particulars have been extracted for the year 2016 from a Factory. 07
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Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) ? SEMESTER III ? EXAMINATION SUMMER ? 2019
Subject Code: 3539905 Date:17/05/2019
Subject Name: COST & MANAGEMENT ACCOUNTING
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Marks
Q.1 Define the following terms. Each term carry two marks:-
(a) Historical Cost
(b) Financial Accounting
(c) Unit Costing
(d) Cost Centers
(e) Zero Base Budget
(f) Budgeting
(g) Variances
14
Q.2 (a) What do you mean by Management Accounting? Explain the scope of management
accounting.
07
(b) Define Activity based costing and its objectives. 07
OR
(b) Explain the techniques of the strategic management accounting in brief. 07
Q.3 (a) Define budget and budgetary control. State the advantages and limitations of
budgetary control in brief.
07
(b) What do you mean by Marginal Costing? Define characteristics of marginal
costing.
07
OR
Q.3 (a)
A medical product manufactured by Thomas Pharma, passes through three distinct
processes to completion. During a week 10000 grams of materials valued at Rs. 50000
were introduced and following expenses were incurred:-
Process A Process B Process C
Machine Expenses 5000 4000 3000
Labour 20000 30000 25000
Direct Expenses 11000 16400 4600
Normal Wastage (On
input)
5% 10% 5%
Scrap value per gram
(Rs.)
1 2 2.5
Actual Output (Grams) 9000 8000 7700
07
(b) Following particulars have been extracted for the year 2016 from a Factory. 07
Page 2 of 3
Limited.
Cost of Materials 600000 Selling Charge 224000
wages 500000 Distributions
overheads
140000
Factory overhead 300000 Profit 420000
Administration
charges
336000
A work order has to be executed in 2017, and estimated expenses are:-
Material Rs.8000, and Wages Rs. 5000.
Assuming that in 2017, the factory overheads will go up by 20%, distribution
overheads will come down by 10% and selling and administration charges will go
up by 15%. At what price the product to be sold, so as to earn same rate of profit on
selling price as in 2016? Factory overheads are charged on the basic wages and
administration, selling and distribution overheads are on factory cost .
Calculate the estimated cost of this work order
Q.4 CASE STUDY:
A company produces three types of products X, Y and Z. The cost per unit of these three
products is given below:-
Particulars Product
X
Product
Y
Product
Z
Direct Material 10 8 9
Direct labour 6 7 6
Variable expenses 4 5 3
Fixed expenses 2 3 2
Total Cost 23 23 20
Profit 9 7 6
Selling Price 32 30 26
Number of units Produced 20000 10000 16000
Production arrangements are such that if one product is given up, the production of the
others can be raised by 50%. The Directors propose that Product Z should be given up
because the contribution from the product is the lowest.
Do the analysis of data and give your comment that the proposal of Directors of the
company should be accepted or is there another better option available for the company?
14
OR
Q.4 (a) A Company produces a single product and sell it at Rs. 200 each. The variable cost
of the product is Rs. 120 per unit and fixed cost for the year is Rs. 96000/-.
Calculate:-
(i) P/V Ratio
(ii) Sales at Break- even point
(iii) Sales units required to earn a target net profit of Rs. 120000
(iv) Sales units required to earn a net profit of Rs. 100000 after to income tax,
assuming tax rate to be 50%
(v) Profit at sales of Rs. 700000.
07
(b) Describe the various classifications of costs in brief.
07
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Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) ? SEMESTER III ? EXAMINATION SUMMER ? 2019
Subject Code: 3539905 Date:17/05/2019
Subject Name: COST & MANAGEMENT ACCOUNTING
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Marks
Q.1 Define the following terms. Each term carry two marks:-
(a) Historical Cost
(b) Financial Accounting
(c) Unit Costing
(d) Cost Centers
(e) Zero Base Budget
(f) Budgeting
(g) Variances
14
Q.2 (a) What do you mean by Management Accounting? Explain the scope of management
accounting.
07
(b) Define Activity based costing and its objectives. 07
OR
(b) Explain the techniques of the strategic management accounting in brief. 07
Q.3 (a) Define budget and budgetary control. State the advantages and limitations of
budgetary control in brief.
07
(b) What do you mean by Marginal Costing? Define characteristics of marginal
costing.
07
OR
Q.3 (a)
A medical product manufactured by Thomas Pharma, passes through three distinct
processes to completion. During a week 10000 grams of materials valued at Rs. 50000
were introduced and following expenses were incurred:-
Process A Process B Process C
Machine Expenses 5000 4000 3000
Labour 20000 30000 25000
Direct Expenses 11000 16400 4600
Normal Wastage (On
input)
5% 10% 5%
Scrap value per gram
(Rs.)
1 2 2.5
Actual Output (Grams) 9000 8000 7700
07
(b) Following particulars have been extracted for the year 2016 from a Factory. 07
Page 2 of 3
Limited.
Cost of Materials 600000 Selling Charge 224000
wages 500000 Distributions
overheads
140000
Factory overhead 300000 Profit 420000
Administration
charges
336000
A work order has to be executed in 2017, and estimated expenses are:-
Material Rs.8000, and Wages Rs. 5000.
Assuming that in 2017, the factory overheads will go up by 20%, distribution
overheads will come down by 10% and selling and administration charges will go
up by 15%. At what price the product to be sold, so as to earn same rate of profit on
selling price as in 2016? Factory overheads are charged on the basic wages and
administration, selling and distribution overheads are on factory cost .
Calculate the estimated cost of this work order
Q.4 CASE STUDY:
A company produces three types of products X, Y and Z. The cost per unit of these three
products is given below:-
Particulars Product
X
Product
Y
Product
Z
Direct Material 10 8 9
Direct labour 6 7 6
Variable expenses 4 5 3
Fixed expenses 2 3 2
Total Cost 23 23 20
Profit 9 7 6
Selling Price 32 30 26
Number of units Produced 20000 10000 16000
Production arrangements are such that if one product is given up, the production of the
others can be raised by 50%. The Directors propose that Product Z should be given up
because the contribution from the product is the lowest.
Do the analysis of data and give your comment that the proposal of Directors of the
company should be accepted or is there another better option available for the company?
14
OR
Q.4 (a) A Company produces a single product and sell it at Rs. 200 each. The variable cost
of the product is Rs. 120 per unit and fixed cost for the year is Rs. 96000/-.
Calculate:-
(i) P/V Ratio
(ii) Sales at Break- even point
(iii) Sales units required to earn a target net profit of Rs. 120000
(iv) Sales units required to earn a net profit of Rs. 100000 after to income tax,
assuming tax rate to be 50%
(v) Profit at sales of Rs. 700000.
07
(b) Describe the various classifications of costs in brief.
07
Page 3 of 3
Q.5
CASE STUDY:
The Director of Good luck Ltd. are considering the result of the profits and loss statement
for the year that ended on 31 December 2009. The extract is as follows:
Particulars Rs. Rs.
Sales 1500000
Direct material 450000
Direct wages 300000
Variable overheads 120000
Fixed overheads 440000 1310000
profits 190000
The budgeted capacity of the company is RS. 2000000, but the key factors is sales
demand. The sales manager is proposing that in order to utilize the existing capacity, the
selling price of the only product manufactured by the company should be reduced by 5%
You are required to help the Board of Director to accept the proposed reduction in the
selling price by prepare a forecast statement of profit and costs expected during the year
2010.
The following additional information is provided:-
1. Sales forecast Rs. 19,00,000.
2. Direct material prices are expected to increase by 2%
3. Direct wages are expected to increase by 5%
4. Variable overhead costs are expected to increase by 5% per unit.
5. Fixed overhead costs are expected to increase by Rs.20000.
14
OR
Q.5 (a) From the following information, calculate various material variances:-
Material Standards Actuals
A
B
Loss
Output
100 Kg @ Rs. 20 per Kg
200 Kg @ Rs. 17 per Kg.
300 Kg
30 Kg
270 Kg
215 Kg @ Rs. 18 per Kg
385 Kg @ Rs. 20 per Kg
600 Kg.
70 Kg
530 Kg
07
(b)
Write a detail note on Kaizen costing.
07
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This post was last modified on 19 February 2020