Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 3rd Semester (Third Semester) R15 2018 Jan 723AG Strategic Management Accounting Previous Question Paper
Code No: 723AG
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, January-2018
STRATEGIC MANAGEMENT ACCOUNTING
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
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.a) What are the benefits of Activity Based Costing? [5]
b) What are the different methods of valuing By-products? [5]
c) With what criteria, managements can think of diversifying their products? [5]
d) What is the role of ?Contribution? while taking managerial decisions? [5]
e) How do you compute Material Yield Variance? [5]
PART - B 5 ?10 Marks = 50
2. Make a comparative statement showing the distinction between Financial Accounting
and Management Accounting. [10]
OR
3. A company has three production departments A,B, and C and two service departments X
and Y. The expenses incurred by them during a month are
A Rs.80,000 X Rs.23,400
B 70,000 Y 30,000
C 50,000 ----------------
The expenses of service departments are apportioned to production departments on the
following basis
A B C X Y
Expenses of X 20% 40% 30% ---- 10%
Expenses of Y 40% 20% 20% 20% ---
Show clearly as to how expenses of X and Y Departments would be apportioned to A, B
and C Departments. [10]
4. The product of a manufacturing concern passes through two processes A and B and then
to finished stock. It is ascertained that in each process, 5% of total weight is lost and
10% is scrap, which from Processes A and B realizes Rs.80 per tonne and Rs.200 per
tonne respectively.
The following are the figures relating to both the processes:
Process A Process B
Materials (Tonnes) 1,000 70
Cost of Materials (Rs./tonne) 125 200
Wages (Rs..) 28,000 10,000
Manufacturing expenses (Rs.) 8,000 5,250
Output (tonnes) 830 780
Prepare the Process cost account showing cost per tone of each process. There was no
stock or work in process in any process. [10]
R15
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Code No: 723AG
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, January-2018
STRATEGIC MANAGEMENT ACCOUNTING
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
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.a) What are the benefits of Activity Based Costing? [5]
b) What are the different methods of valuing By-products? [5]
c) With what criteria, managements can think of diversifying their products? [5]
d) What is the role of ?Contribution? while taking managerial decisions? [5]
e) How do you compute Material Yield Variance? [5]
PART - B 5 ?10 Marks = 50
2. Make a comparative statement showing the distinction between Financial Accounting
and Management Accounting. [10]
OR
3. A company has three production departments A,B, and C and two service departments X
and Y. The expenses incurred by them during a month are
A Rs.80,000 X Rs.23,400
B 70,000 Y 30,000
C 50,000 ----------------
The expenses of service departments are apportioned to production departments on the
following basis
A B C X Y
Expenses of X 20% 40% 30% ---- 10%
Expenses of Y 40% 20% 20% 20% ---
Show clearly as to how expenses of X and Y Departments would be apportioned to A, B
and C Departments. [10]
4. The product of a manufacturing concern passes through two processes A and B and then
to finished stock. It is ascertained that in each process, 5% of total weight is lost and
10% is scrap, which from Processes A and B realizes Rs.80 per tonne and Rs.200 per
tonne respectively.
The following are the figures relating to both the processes:
Process A Process B
Materials (Tonnes) 1,000 70
Cost of Materials (Rs./tonne) 125 200
Wages (Rs..) 28,000 10,000
Manufacturing expenses (Rs.) 8,000 5,250
Output (tonnes) 830 780
Prepare the Process cost account showing cost per tone of each process. There was no
stock or work in process in any process. [10]
R15
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OR
5. A cycle manufacturing company requires to quote for a contract for the supply of 500
bicycles on 31
st
March. 2017. From the following details, prepare a statement showing
the price to be quoted to give the same % of net profit on turnover as was realized during
the previous six months.
Stock of Materials on 1
st
July, 2016 Rs.50,000
Stock of materials on31st December, 2016 Rs.7,000
Purchase of materials during 6 months to 31
st
December, 2016 Rs.75,000
Factory wages Rs.1,50,000
Indirect expenses Rs.25,000
Sales Rs.2,70,000
Completed stock in hand on 1
st
July,2016 Nil
Completed stock in hand on 31
st
December Rs.50,000
The number of bicycles manufactured during six months was 2,000, including those
sold and those in stock at the end of the period. The size of the bicycles and also the
quality remain unchanged. However with effect from 1
st
January,2017, wages were
increased by 10% and that of materials by 15%. [10]
6. An engineering company manufactures four components, namely A, B, C and D, the
cost particulars of which are given below:
A
(Rs.)
B
(Rs.)
C
(Rs.)
D (Rs.)
Direct Materials 80 100 100 120
Direct Labour 20 25 25 30
Variable overhead 10 12 15 10
Fixed overhead 15 23 20 20
125 160 160 180
Output per Machine-hour
(Units)
4 2 3 3
The key factor is shortage of machine capacity. You are required to advise the
Management as to whether they should continue to produce all or some of these
components (which are in its main product) or they should buy them from a
supplier who has quoted the following prices:
A;Rs.115; B:Rs.175; C:Rs.135; and D:Rs.185. [10]
OR
7. The Directors of a company are considering the sales budget for the next budget period.
You are required to present to the Board, a statement showing marginal cost of each
product and also to recommend which of the following sales mixes should be adopted:
(a) 900 units of X and 600 units of Y; (b) 1,800 units of X only;
(c) 1,200 units of X and 400 units of Y; (d) 1,200 units of Y only.
You are given the following information:
Product X Product Y
Direct Materials per unit Rs.20 Rs.25
Direct labour @ Rs.5.00 per
Hour
20 Hours 30 Hours
Selling price Rs.300 Rs.500
Overheads: Fixed:Rs.10,000 per annum and Variable:100% of labour. [10]
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Code No: 723AG
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, January-2018
STRATEGIC MANAGEMENT ACCOUNTING
Time: 3hours Max.Marks:75
Note: This question paper contains two parts A and B.
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.a) What are the benefits of Activity Based Costing? [5]
b) What are the different methods of valuing By-products? [5]
c) With what criteria, managements can think of diversifying their products? [5]
d) What is the role of ?Contribution? while taking managerial decisions? [5]
e) How do you compute Material Yield Variance? [5]
PART - B 5 ?10 Marks = 50
2. Make a comparative statement showing the distinction between Financial Accounting
and Management Accounting. [10]
OR
3. A company has three production departments A,B, and C and two service departments X
and Y. The expenses incurred by them during a month are
A Rs.80,000 X Rs.23,400
B 70,000 Y 30,000
C 50,000 ----------------
The expenses of service departments are apportioned to production departments on the
following basis
A B C X Y
Expenses of X 20% 40% 30% ---- 10%
Expenses of Y 40% 20% 20% 20% ---
Show clearly as to how expenses of X and Y Departments would be apportioned to A, B
and C Departments. [10]
4. The product of a manufacturing concern passes through two processes A and B and then
to finished stock. It is ascertained that in each process, 5% of total weight is lost and
10% is scrap, which from Processes A and B realizes Rs.80 per tonne and Rs.200 per
tonne respectively.
The following are the figures relating to both the processes:
Process A Process B
Materials (Tonnes) 1,000 70
Cost of Materials (Rs./tonne) 125 200
Wages (Rs..) 28,000 10,000
Manufacturing expenses (Rs.) 8,000 5,250
Output (tonnes) 830 780
Prepare the Process cost account showing cost per tone of each process. There was no
stock or work in process in any process. [10]
R15
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OR
5. A cycle manufacturing company requires to quote for a contract for the supply of 500
bicycles on 31
st
March. 2017. From the following details, prepare a statement showing
the price to be quoted to give the same % of net profit on turnover as was realized during
the previous six months.
Stock of Materials on 1
st
July, 2016 Rs.50,000
Stock of materials on31st December, 2016 Rs.7,000
Purchase of materials during 6 months to 31
st
December, 2016 Rs.75,000
Factory wages Rs.1,50,000
Indirect expenses Rs.25,000
Sales Rs.2,70,000
Completed stock in hand on 1
st
July,2016 Nil
Completed stock in hand on 31
st
December Rs.50,000
The number of bicycles manufactured during six months was 2,000, including those
sold and those in stock at the end of the period. The size of the bicycles and also the
quality remain unchanged. However with effect from 1
st
January,2017, wages were
increased by 10% and that of materials by 15%. [10]
6. An engineering company manufactures four components, namely A, B, C and D, the
cost particulars of which are given below:
A
(Rs.)
B
(Rs.)
C
(Rs.)
D (Rs.)
Direct Materials 80 100 100 120
Direct Labour 20 25 25 30
Variable overhead 10 12 15 10
Fixed overhead 15 23 20 20
125 160 160 180
Output per Machine-hour
(Units)
4 2 3 3
The key factor is shortage of machine capacity. You are required to advise the
Management as to whether they should continue to produce all or some of these
components (which are in its main product) or they should buy them from a
supplier who has quoted the following prices:
A;Rs.115; B:Rs.175; C:Rs.135; and D:Rs.185. [10]
OR
7. The Directors of a company are considering the sales budget for the next budget period.
You are required to present to the Board, a statement showing marginal cost of each
product and also to recommend which of the following sales mixes should be adopted:
(a) 900 units of X and 600 units of Y; (b) 1,800 units of X only;
(c) 1,200 units of X and 400 units of Y; (d) 1,200 units of Y only.
You are given the following information:
Product X Product Y
Direct Materials per unit Rs.20 Rs.25
Direct labour @ Rs.5.00 per
Hour
20 Hours 30 Hours
Selling price Rs.300 Rs.500
Overheads: Fixed:Rs.10,000 per annum and Variable:100% of labour. [10]
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8. There are two similar plants functioning under the same management. The management
desires to merge these two plants. The following particulars are available: [10]
Factory I Factory II
Capacity operation 100% 60%
Sales 3,00,00,000 1,20,00,000
Variable costs 2,00,00,000 90,00,000
Fixed costs 40,00,000 20,00,000
You are required to calculate (a) capacity of the merged plant to be operated for the
purpose of break even, and (b) the profitability on working at 75% of the merged
capacity.
OR
9. What are the essentials of a successful Inter firm comparison? How can it benefit the
Management? What are its limitations? [10]
10. A toy manufacturing company manufactures two types of toys, namely Sindhu and
Bindu and sells them in Andhra Pradesh and Telangana markets. The following
information is made available for the current year:
Market Types Budgeted sales Actual sales
Andhra Pradesh Sindhu
Bindu
400 pieces @ Rs.9 each
300 pieces @Rs.21 each
500 pieces @ Rs.9 each
200 pieces @ Rs.21 each
Telangana Sindhu
Bindu
600 pieces @ Rs.9 each
500 pieces @ Rs.21 each
700 pieces @ Rs.9 each
400 pieces @ Rs.21 each
Market study reveals that toy Sindhu is popular and it is underpriced. It is observed that
if its price is increased by Re.1, it will find a readymade market. On the other hand,
Bindu is overpriced and market could absorb more sales if its price is reduced to Rs.20.
The management has agreed to give effect to the above changes.
On the above basis, the following estimates have been prepared by the Sales Manager:
With the help of an intensive sales campaign, the following additional sales above
estimated sales are possible:
Product Andhra Pradesh Telangana
Sindhu 60 pieces 70 pieces
Bindu 40 pieces 50 pieces
You are required to prepare sales budget. [10]
OR
11. The standard labour composition and the actual labour composition engaged in 10 weeks
for a job are as under: [10]
Standard Actual
Category of
workers
No. of workers Weekly wage
rate/worker
No. of workers Weekly wage
rate/worker
Grade A 40 Rs.80 50 Rs.70
Grade B 50 Rs.70 60 Rs.75
Grade C 30 Rs.50 10 Rs.60
The work is actually completed in 12 weeks. Calculate various labour variances.
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This post was last modified on 23 October 2020