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Code No: 723AG
R15
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JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, December - 2018
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STRATEGIC MANAGEMENT ACCOUNTING
Time: 3hours
Max.Marks:75
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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
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10 marks and may have a, b, c as sub questions.PART - A 5 × 5 Marks = 25
- What do you understand by ‘Activity Based Costing? [5]
- Explain the concept ‘Inter Process Profits'. When do they arise? [5]
- How is 'Key factor' helpful to Management in output decisions? [5]
- Represent diagrammatically ‘Margin of safety' in terms of quantity and value. [5]
- How do you compute 'Labour Yield Variance'? [5]
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PART - B 5 × 10 Marks = 50
- Narrate the importance of strategic management accounting in present market
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conditions? [10]
OR - The following data relate to the manufacture of a standard product during the four
weeks ended 31st October, 2017.
Raw materials consumed Rs.15,000--- Content provided by FirstRanker.com ---
Direct wages Rs.9,800
Machine hours worked 2,300 Hrs.
Machine Hour rated Re.0.50
Office on cost 10% on works cost
Selling on cost Re.0.10 per unit--- Content provided by FirstRanker.com ---
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] - A cycle manufacturing company requires to quote for a contract for the supply of 500
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bicycles on 31st 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 1st July, 2016 Rs.50,000
Stock of materials on31st December, 2016 Rs.7,000--- Content provided by FirstRanker.com ---
Purchase of materials during 6 months to 31st 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 1st July, 2016 Nil--- Content provided by FirstRanker.com ---
Completed stock in hand on 31st 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 1st January, 2017, wages were
increased by 10% and that of materials by 15%.--- Content provided by FirstRanker.com ---
OR [10] - A product is finally obtained after passing through three distinct 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 Direct wages Rs.2,250 Rs.3,680 Rs.5,625 Production overheads Rs.1,400 Rs.7,330
500 units @ Rs.4 per unit were introduced in process I. Production overheads were--- Content provided by FirstRanker.com ---
absorbed as a % on direct wages.
The actual output and normal loss of respective processes are given below:
Process I Process II Process III Output (units) 450 340 270 Normal loss as a % on inputs 10% 20% 25% Value of scrap (per unit) Rs.2 Rs.4 Rs.5
Prepare Process accounts and abnormal gain/loss accounts. [10] - A company makes four components, namely A, B, C and D. The cost particulars are
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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 10 20 Fixed overhead 15 23 20 20 Output per Machine Hour (units) 4 2 3 3 Machine Hours 125 160 160 180
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.--- Content provided by FirstRanker.com ---
OR [10] - A businessman provides the following information:
Production and sales at present: 25,000 units
Sales at present: Rs.6,25,000
P/V Ratio: 20%--- Content provided by FirstRanker.com ---
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] - What are the assumptions of Break even Analysis? In what respects the break even
Principle is helpful to Management? What are its limitations?
OR [10] - The sales turnover and profit of a business unit during two years, 2015 and 2016 were
as follows:--- Content provided by FirstRanker.com ---
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. - Explain different types of Inter firm comparison and their advantages. [5+5]
- 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 30th June, 2018.
Sales (Rs.) Purchases (Rs.) 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:--- Content provided by FirstRanker.com ---
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.--- Content provided by FirstRanker.com ---
b) What are the objectives of Management Audit?
OR [6+4] - What are the preparatory activities before installing standard costing system in an
Organization?
b) From the following data, calculate--- Content provided by FirstRanker.com ---
i) Price variance,
ii) Usage variance,
iii) Mix variance, and
iv) Revised usage variance
Material Standard Rate /kg. (Rs.) Standard Qnty. Actual Rate /kg. (Rs.) Actual Qnty. A 10 200 05 300 B 20 300 10 600 C 20 600 15 500 --- Content provided by FirstRanker.com ---
[5+5]
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This download link is referred from the post: JNTUH MBA 3rd Sem Last 10 Year Question Papers (2010-2020) All Regulation - (JNTU Hyderabad)
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