Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 3rd Semester (Third Semester) R15 2018 Dec 723AG Strategic Management Accounting Previous Question Paper
Code No: 723AG
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, December - 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 do you understand by ?Activity Based Costing? [5]
b) Explain the concept ?Inter Process Profits?. When do they arise? [5]
c) How is ?Key factor? helpful to Management in output decisions? [5]
d) Represent diagrammatically ?Margin of safety? in terms of quantity and value. [5]
e) How do you compute ?Labour Yield Variance?? [5]
PART - B 5 ? 10 Marks = 50
2. Narrate the importance of strategic management accounting in present market
conditions? [10]
OR
3. The following data relate to the manufacture of a standard product during the four
weeks ended 31
st
October, 2017.
Raw materials consumed Rs.15,000
Direct wages Rs.9,800
Machine hours worked 2,300 Hrs.
Machine Hour rate Re.0.50
Office on cost 10% on works cost
Selling on cost Re.0.10 per unit
Units produced 19,030
Units sold @ Rs.2 per unit 11,418
You are required to prepare a cost sheet in respect of the above showing the cost of
production per unit. [10]
4. 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
R15
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Code No: 723AG
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, December - 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 do you understand by ?Activity Based Costing? [5]
b) Explain the concept ?Inter Process Profits?. When do they arise? [5]
c) How is ?Key factor? helpful to Management in output decisions? [5]
d) Represent diagrammatically ?Margin of safety? in terms of quantity and value. [5]
e) How do you compute ?Labour Yield Variance?? [5]
PART - B 5 ? 10 Marks = 50
2. Narrate the importance of strategic management accounting in present market
conditions? [10]
OR
3. The following data relate to the manufacture of a standard product during the four
weeks ended 31
st
October, 2017.
Raw materials consumed Rs.15,000
Direct wages Rs.9,800
Machine hours worked 2,300 Hrs.
Machine Hour rate Re.0.50
Office on cost 10% on works cost
Selling on cost Re.0.10 per unit
Units produced 19,030
Units sold @ Rs.2 per unit 11,418
You are required to prepare a cost sheet in respect of the above showing the cost of
production per unit. [10]
4. 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
R15
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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]
OR
5. A product is finally obtained after passing through three ditinct processes. The
following information is available from cost records:
Process I Process II Process III Total
Materials Rs.2,600 Rs.2000 Rs.1,025 Rs.5,625
Direct wages Rs.2,250 Rs.3,680 Rs.1,400 Rs.7,330
Production
overheads
----- --------- -------- Rs.7,330
500 units @ Rs.4 per unit were introduced in process I.Production overheads were
absorbed as a % on direct wages.
The actual output and normal loss of respective processes are given below:
Output (units) Normal loss as
a % on inputs
Value of scrap
(per unit)
Process I 450 10% Rs.2
Process II 340 20% Rs.4
Process III 270 25% Rs.5
Prepare Process accounts and abnormal gain/loss accounts. [10]
6. A company makes four components, namely A,B,C and D. The cost particulars 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
Advise the Management as to whether they should continue to produce all or some of
these components or 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. A busiessman provides the following information:
Production and sales at present: 25,000 units
Sales at present: Rs.6,25,000
P/V Ratio: 20%
Fixed costs at present: Rs.4,80,000 p.a.
Fixed cost when the plant is shut down:Rs.3,60,000 p.a.
Advise the businessman whether the plant should be shut down and calculate the shut
down point. If the existing sales (in units) are reduced by 5%, shall your decision be
changed? [10]
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Code No: 723AG
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, December - 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 do you understand by ?Activity Based Costing? [5]
b) Explain the concept ?Inter Process Profits?. When do they arise? [5]
c) How is ?Key factor? helpful to Management in output decisions? [5]
d) Represent diagrammatically ?Margin of safety? in terms of quantity and value. [5]
e) How do you compute ?Labour Yield Variance?? [5]
PART - B 5 ? 10 Marks = 50
2. Narrate the importance of strategic management accounting in present market
conditions? [10]
OR
3. The following data relate to the manufacture of a standard product during the four
weeks ended 31
st
October, 2017.
Raw materials consumed Rs.15,000
Direct wages Rs.9,800
Machine hours worked 2,300 Hrs.
Machine Hour rate Re.0.50
Office on cost 10% on works cost
Selling on cost Re.0.10 per unit
Units produced 19,030
Units sold @ Rs.2 per unit 11,418
You are required to prepare a cost sheet in respect of the above showing the cost of
production per unit. [10]
4. 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
R15
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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]
OR
5. A product is finally obtained after passing through three ditinct processes. The
following information is available from cost records:
Process I Process II Process III Total
Materials Rs.2,600 Rs.2000 Rs.1,025 Rs.5,625
Direct wages Rs.2,250 Rs.3,680 Rs.1,400 Rs.7,330
Production
overheads
----- --------- -------- Rs.7,330
500 units @ Rs.4 per unit were introduced in process I.Production overheads were
absorbed as a % on direct wages.
The actual output and normal loss of respective processes are given below:
Output (units) Normal loss as
a % on inputs
Value of scrap
(per unit)
Process I 450 10% Rs.2
Process II 340 20% Rs.4
Process III 270 25% Rs.5
Prepare Process accounts and abnormal gain/loss accounts. [10]
6. A company makes four components, namely A,B,C and D. The cost particulars 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
Advise the Management as to whether they should continue to produce all or some of
these components or 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. A busiessman provides the following information:
Production and sales at present: 25,000 units
Sales at present: Rs.6,25,000
P/V Ratio: 20%
Fixed costs at present: Rs.4,80,000 p.a.
Fixed cost when the plant is shut down:Rs.3,60,000 p.a.
Advise the businessman whether the plant should be shut down and calculate the shut
down point. If the existing sales (in units) are reduced by 5%, shall your decision be
changed? [10]
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8. What are the assumptions of Break even Analysis? In what respects the break even
Principle is helpful to Management? What are its limitations? [10]
OR
9.a) The sales turnover and profit of a business unit during two years, 2015 and 2016 were
as follows:
Year Sales Profit
2015 Rs.4,50,000 Rs.60,000
2016 Rs.5,10,000 Rs.75,000
You are required to calculate:
i) P/V Ratio; ii) Sales required to earn profit of Rs.1,20,000; and iii) Profit made
when sales are Rs.7,50,000.
b) Explain different types of Inter firm comparison and their advantages. [5+5]
10.a) Mr. Ashok plans to prepare a cash budget for the next 3 months with a cash balance of
Rs.45,000 on 01.04.2018. The following information is provided to you with the help
of which determine the closing balance of cash as on 30
th
June, 2018.
Sales (Rs.) Purchases Wages (Rs.) Expenses (Rs.)
February 70,000 40,000 8,000 6,000
March 80,000 50,000 8,000 7,000
April 92,000 52,000 9,000 7,000
May 1,00,000 60,000 10,000 8,000
June 1,20,000 55,000 12,000 9,000
Other Information:
i) Period of credit allowed by suppliers: Two months,
ii) 25% of sales are for cash and period of credit allowed to customers for credit sales:
one month.
iii) Delay in payment of wages and expenses: one month,
iv) Income Tax of Rs.20,000 to be paid in June, 2015.
b) What are the objectives of Management Audit? [6+4]
OR
11.a) What are the preparatory activities before installing standard costing system in an
Organization?
b) From the following data, calculate
i) Price variance,
ii) Usage variance,
iii) Mix variance, and
iv) Revised usage variance
Materail Standard
.Qnty.
Standard
.Rate/kg.
(Rs.)
Actual
Qnty.
Actual Rate
/kg. (Rs.)
A 10 kgs. 200 05 kgs. 300
B 20 kgs. 300 10 kgs. 600
C 20 kgs. 600 15 kgs. 500
[5+5]
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This post was last modified on 23 October 2020