Download JNTU-Hyderabad MBA 3rd Sem R17 2019 May 743AQ Strategic Management Accounting Question Paper

Code No: 743AQ

R17

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

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MBA III Semester Examinations, April/May-2019

STRATEGIC MANAGEMENT ACCOUNTING

Max.Marks:75

Time: 3hours

Note: This question paper contains two parts A and B.

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Part A is compulsory which carries 25 marks. Answer all questions in Part A. Part B consists of 5 Units. Answer any one full question from each unit. Each question carries 10 marks and may have a, b, c as sub questions.

PART - A 5 × 5 Marks = 25

1. Distinguish between direct and indirect expenses. [5]
2. Explain Unit costing. [5]
3. What is key or limiting factor? [5]

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4. What is diversification of products? [5]
5. Distinguish between standard costing and budgetary control. [5]

PART - B 5 × 10 Marks = 50

2. Discuss the various cost concepts. What is the managerial use of classification of costs? [10]

   OR

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3. State the differences between Financial Accounting, Cost Accounting and Management Accounting. Explain how financial accounts are inadequate to measure the performance of an industry. [10]
4. Below is the enumerated expenditure in the manufacture of Commodity X:
   Three months ended
   31-12-1999
   Raw materials 28,000
   

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   Fuel 6,900
   Electric power 1,340
   Process and general wages 63,500
   Repairs 2,400
   Haulage 1,060
   

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   Light & Water 400
   Rent 2,000
   Rates and Insurance 300
   Office salaries and general expenses 7,000
   Administration (office) 5,000
   

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   Depreciation on Machinery 2,500
   Total 1,20,400
   Tons manufacturers 17,200
   Prepare a Cost-Sheet showing the cost per each item of expenses and total cost per ton for the period. [10]

   OR

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5. Distinguish between:
   a) Controllable costs and uncontrollable costs.
   b) Job costing and process costing. [5+5]
6. XYZ Ltd. supplies the following information data for the year ending 31st December 2018
   Production 1100 units
   

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   Sales 1,000 units
   There was no opening stock
   Variable manufacturing cost per unit Rs.70
   Fixed manufacturing overhead (total) Rs.22,000
   Variable selling and administration overhead per unit Rs. 50
   

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   Fixed selling and administration overhead Rs.4000
   Selling price per unit Rs.150
   Prepare Income statement under marginal costing. [10]

   OR

7. Explain application of Marginal costing in terms of cost control and closing down a plant. [10]

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8. a) Explain briefly about Cost-volume-profit analysis.
   b) How contribution is related to Profit. Explain.

   OR [5+5]

9. XYZ Ltd. which produces three products furnishes the following data
   Products A B C
   

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   Selling price per unit (Rs.) 100 75 50
   Profit/Volume ratio 10% 20% 40%
   Maximum sales potential (units) 40,000 25,000 10,000
   Raw material content as % of Variable cost 50% 50% 50%
   The fixed expenses are estimated at Rs. 6,80,000 . The company uses a single raw material in all the three products. Raw material is in short supply and company has a quota for the supply of raw materials of the value of Rs.18,00,000 for the year for the manufacture of its products to meet its sales demand.
   

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   Calculate a) set a product mix which will give the maximum overall profit keeping the short supply of raw material b) maximum profit. [10]
10. Float glass manufacturing company requires to present the budget for the next year from the following information:
    Sales:
    Toughened glass Rs.6,00,000
    Bent glass Rs.2,00,000
    

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    Direct material cost 60% of sales
    Direct wages 20 workers @Rs.150 per month
    Factory overheads:
    Indirect labour Rs. 500 per month
    Works manager Rs.400 per month
    

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    Foreman 2.5% on sales
    Stores and spares Rs.12,600
    Depreciation machinery Rs.3,000
    Light and Power Rs.8000
    Repairs and maintenance 10% on direct wages
    

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    Others Sundries Rs. 36,000 per year
    Administration selling and distribution expenses
    
11. Explain the following:
    a) Performance budget
    

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    b) Cost Audit

    OR

    c) Standard costing and marginal costing. [10]

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