Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Winter 2nd Sem 3529202 Cost And Management Accounting Cma Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 2 ? EXAMINATION ? WINTER 2018
Subject Code: 3529202 Date: 24/12/2018
Subject Name: Cost & Management Accounting (CMA)
Time: 02:30PM TO 05:30PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Explain the following terms in brief:
(a) Abnormal loss & abnormal gain
(b) Profit centre
(c) Cost Ascertainment
(d) Kaizen costing
(e) Break even point
(f) Incremental cost
(g) Period cost
14
Q.2 (a) Explain the points of distinction between cost accounting and management
accounting.
07
(b) It is said, ?Cost accounting is a system of foresight and not postmortem
examination; it turns losses in to profits, speeds up activities and eliminates
wastes.? Discuss this statement in detail.
07
OR
(b) Electrical Ltd is manufacturing coolers and the following details are furnished
for the year ended 31 December 2017:
Work-in-process 1 January 2017:
At prime cost 51,000
Manufacturing expenses 25,000
Work-in-process 31 December 2017:
At prime cost 45,000
Manufacturing expenses 20,000
Stock of raw materials, 1 January 2017 2,05,000
Purchases of raw materials 4,97,000
Direct labour 1,71,000
Manufacturing expenses 84,000
Stock of raw materials on 31 December 2017 2,04,000
On the basis of the above data, prepare a statement showing the cost of
production.
07
Q.3 (a) What is Activity-based costing? Distinguish between ABC and traditional
costing system?
07
(b) A product is obtained after passing it through three processes. The following
information is collected for January 2016.
Particulars Processes
I II III
07
FirstRanker.com - FirstRanker's Choice
Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 2 ? EXAMINATION ? WINTER 2018
Subject Code: 3529202 Date: 24/12/2018
Subject Name: Cost & Management Accounting (CMA)
Time: 02:30PM TO 05:30PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Explain the following terms in brief:
(a) Abnormal loss & abnormal gain
(b) Profit centre
(c) Cost Ascertainment
(d) Kaizen costing
(e) Break even point
(f) Incremental cost
(g) Period cost
14
Q.2 (a) Explain the points of distinction between cost accounting and management
accounting.
07
(b) It is said, ?Cost accounting is a system of foresight and not postmortem
examination; it turns losses in to profits, speeds up activities and eliminates
wastes.? Discuss this statement in detail.
07
OR
(b) Electrical Ltd is manufacturing coolers and the following details are furnished
for the year ended 31 December 2017:
Work-in-process 1 January 2017:
At prime cost 51,000
Manufacturing expenses 25,000
Work-in-process 31 December 2017:
At prime cost 45,000
Manufacturing expenses 20,000
Stock of raw materials, 1 January 2017 2,05,000
Purchases of raw materials 4,97,000
Direct labour 1,71,000
Manufacturing expenses 84,000
Stock of raw materials on 31 December 2017 2,04,000
On the basis of the above data, prepare a statement showing the cost of
production.
07
Q.3 (a) What is Activity-based costing? Distinguish between ABC and traditional
costing system?
07
(b) A product is obtained after passing it through three processes. The following
information is collected for January 2016.
Particulars Processes
I II III
07
Page 2 of 3
Direct materials(Rs.) 5,200 3,960 5,924
Direct wages(Rs.) 4,000 6,000 8,000
Output in the month (units) 950 840 750
Normal loss 5% 10% 15%
Value of scrap per unit
(Rs.)
4 8 10
Additional information:
1,000 units, at Rs. 6 each, were introduced in Process I. There was no stock of
materials of work-in-progress at the beginning or at the end of the month.
Production overhead was Rs. 18,000 for the month. Prepare process accounts
indicating normal loss, abnormal loss and abnormal gain.
OR
Q.3 (a) ?Price setting generally requires a balance between market forces and cost
considerations.? Explain?
07
(b) The sales and profit for two years are as below:
Year Sales(Rs.) Profit(Rs.)
2016 1,50,000 20,000
2017 1,70,000 25,000
Calculate:
(a) P/V ratio; (b) BEP; (c) Sales required to earn a profit of Rs. 40,000;
(d) Margin of safety at a profit of Rs. 1,25,000; (e) Profit made when
sales are Rs. 1,00,000; (f) Variable costs of two years.
07
Q.4 (a) Describe the steps in the decision-making process. In which steps does the
management accountant play major roles?
07
(b) A factory is currently running at 50% capacity and produces 5,000 units at a cost of
Rs. 90 per unit as per details below:
Materials Rs. 50
Labour Rs. 15
Factory overheads Rs. 15(Rs. 6 fixed)
Administrative overheads Rs. 10 (Rs. 5 fixed)
The current selling price is Rs. 100/- per unit.
At 60% working, material cost per unit increased by 2% and selling price per unit
falls by 2%. Whereas at 80% working, material cost per unit increased by 5% and
selling price per unit falls by 5%.
Estimate profits of the factory at 60% and 80% working and give your comments.
07
OR
Q.4 (a) Define Strategic Management Accounting? Explain the techniques of Strategic
Management Accounting in brief?
07
(b) Following are the particulars in respect of a product where two types of
materials A and B are used:
Material
input
Standard Actual
Tonnes Rate Tonnes Rate
A 120 10.00 140 09.50
B 80 07.50 60 09.00
200 200
Less: Loss 20 18
Net production 180 182
07
FirstRanker.com - FirstRanker's Choice
Page 1 of 3
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 2 ? EXAMINATION ? WINTER 2018
Subject Code: 3529202 Date: 24/12/2018
Subject Name: Cost & Management Accounting (CMA)
Time: 02:30PM TO 05:30PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Explain the following terms in brief:
(a) Abnormal loss & abnormal gain
(b) Profit centre
(c) Cost Ascertainment
(d) Kaizen costing
(e) Break even point
(f) Incremental cost
(g) Period cost
14
Q.2 (a) Explain the points of distinction between cost accounting and management
accounting.
07
(b) It is said, ?Cost accounting is a system of foresight and not postmortem
examination; it turns losses in to profits, speeds up activities and eliminates
wastes.? Discuss this statement in detail.
07
OR
(b) Electrical Ltd is manufacturing coolers and the following details are furnished
for the year ended 31 December 2017:
Work-in-process 1 January 2017:
At prime cost 51,000
Manufacturing expenses 25,000
Work-in-process 31 December 2017:
At prime cost 45,000
Manufacturing expenses 20,000
Stock of raw materials, 1 January 2017 2,05,000
Purchases of raw materials 4,97,000
Direct labour 1,71,000
Manufacturing expenses 84,000
Stock of raw materials on 31 December 2017 2,04,000
On the basis of the above data, prepare a statement showing the cost of
production.
07
Q.3 (a) What is Activity-based costing? Distinguish between ABC and traditional
costing system?
07
(b) A product is obtained after passing it through three processes. The following
information is collected for January 2016.
Particulars Processes
I II III
07
Page 2 of 3
Direct materials(Rs.) 5,200 3,960 5,924
Direct wages(Rs.) 4,000 6,000 8,000
Output in the month (units) 950 840 750
Normal loss 5% 10% 15%
Value of scrap per unit
(Rs.)
4 8 10
Additional information:
1,000 units, at Rs. 6 each, were introduced in Process I. There was no stock of
materials of work-in-progress at the beginning or at the end of the month.
Production overhead was Rs. 18,000 for the month. Prepare process accounts
indicating normal loss, abnormal loss and abnormal gain.
OR
Q.3 (a) ?Price setting generally requires a balance between market forces and cost
considerations.? Explain?
07
(b) The sales and profit for two years are as below:
Year Sales(Rs.) Profit(Rs.)
2016 1,50,000 20,000
2017 1,70,000 25,000
Calculate:
(a) P/V ratio; (b) BEP; (c) Sales required to earn a profit of Rs. 40,000;
(d) Margin of safety at a profit of Rs. 1,25,000; (e) Profit made when
sales are Rs. 1,00,000; (f) Variable costs of two years.
07
Q.4 (a) Describe the steps in the decision-making process. In which steps does the
management accountant play major roles?
07
(b) A factory is currently running at 50% capacity and produces 5,000 units at a cost of
Rs. 90 per unit as per details below:
Materials Rs. 50
Labour Rs. 15
Factory overheads Rs. 15(Rs. 6 fixed)
Administrative overheads Rs. 10 (Rs. 5 fixed)
The current selling price is Rs. 100/- per unit.
At 60% working, material cost per unit increased by 2% and selling price per unit
falls by 2%. Whereas at 80% working, material cost per unit increased by 5% and
selling price per unit falls by 5%.
Estimate profits of the factory at 60% and 80% working and give your comments.
07
OR
Q.4 (a) Define Strategic Management Accounting? Explain the techniques of Strategic
Management Accounting in brief?
07
(b) Following are the particulars in respect of a product where two types of
materials A and B are used:
Material
input
Standard Actual
Tonnes Rate Tonnes Rate
A 120 10.00 140 09.50
B 80 07.50 60 09.00
200 200
Less: Loss 20 18
Net production 180 182
07
Page 3 of 3
You are required to calculate:
(a) Material Price Variance
(b) Material Mix Variance
(c) Material Yield Variance
(d) Material Usage Variance
Q.5
(a)
CASE STUDY
TabComp Inc. is a retail distributor for MZB-33 computer hardware and related
software and support services. TabComp prepares annual sales forecasts of
which the first six months for 2016 are presented below.
Cash sales account for 25% of TabComp?s total sales, 30% of the total sales are
paid by bank credit card, and the remaining 45% are on open account
(TabComp?s own charge accounts). The cash and bank credit card sales are
received in the month of the sale. Bank credit card sales are subject to a four-
percent discount deducted at the time of the daily deposit, The cash receipts for
sales on open account are 70% in the month following the sale, 28% in the
second month following the sale and the remaining are estimated to be
uncollectible.
TabComp Inc. Sales Forecast for Six Months - 2016
Hardware Sales Software sales
& Support
Total Sales
Months Units Rs. Rs. Rs.
January 130 390000 160000 550000
February 120 360000 140000 500000
March 110 330000 150000 480000
April 90 270000 130000 400000
May 100 300000 125000 425000
June 125 375000 225000 600000
Total 675 2025000 930000 2955000
TabComp?s month-end inventory requirements for computer hardware units are
30% of the next month?s sales. A one-month lead time is required for delivery
from the manufacturer; thus orders for computer hardware units are placed on
the 25
th
of each month to assure that they will be in the store by the first day of
the month needed. The computer hardware units are purchased under terms of
N/45 measured from the time the units are delivered to TabComp. TabComp?s
purchase price for the computer units is 60% of the selling price.
Calculate the cash that TabComp can expect to collect during April 2016. Be
sure to show all of your calculations.
07
(b) As part of the annual budget process, TabComp prepares a cash budget by
month for the entire year. Explain why a company such as TabComp prepares a
cash budget by month for the entire year.
07
OR
Q.5 (a) TabComp is determining the MZB-33 computer hardware units that will be
ordered on January 25, 2016. Determine the projected number of computer
hardware units that will be ordered.
07
(b) Calculate the value of the order that TabComp will place for these computer
hardware units. Also highlight in which month will TabComp pay for these
computer hardware units.
07
*************
FirstRanker.com - FirstRanker's Choice
This post was last modified on 19 February 2020