Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 3rd Semester (Third Semester) R17 2019 Dec 743AQ Strategic Management Accounting Previous Question Paper
Code No: 743AQ
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, December - 2019
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 ? 5Marks = 25
1.a) What are the different classification of costing? [5]
b) How would you treat abnormal gain? [5]
c) What are the features of marginal costing? [5]
d) What are the assumptions of break-even analysis? What are its uses? [5]
e) What are the objectives of budgetary control system? [5]
PART - B 5 ? 10 Marks = 50
2. The following inventory data relate to a company:
Particulars Beginning inventory in Rs. Ending inventory in Rs.
Finished goods 1,10,000 95,000
Work-in-progress 70,000 80,000
Raw material 90,000 95,000
Additional information:-
Cost of goods available for sale Rs. 6,84,000
Total goods processed during the period Rs. 1,67,000
Direct material Rs. 1,93,000
Requirement:
a) determine raw material purchases
b) determine the direct labour cost incurred
c) determine the cost of goods sold. [10]
OR
3.a) What do you understand by direct material? What is indirect material? Give
examples.
b) For manufacturing aluminum ingot, the cost of basic raw material, bauxite is
Rs. 40 per ton of aluminum whereas the electricity cost for procuring is
Rs. 1,000 per ton. Some people therefore consider electricity as the raw material for
aluminum. Would you agree? Justify your answer. [5+5]
R17
S
FirstRanker.com - FirstRanker's Choice
Code No: 743AQ
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, December - 2019
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 ? 5Marks = 25
1.a) What are the different classification of costing? [5]
b) How would you treat abnormal gain? [5]
c) What are the features of marginal costing? [5]
d) What are the assumptions of break-even analysis? What are its uses? [5]
e) What are the objectives of budgetary control system? [5]
PART - B 5 ? 10 Marks = 50
2. The following inventory data relate to a company:
Particulars Beginning inventory in Rs. Ending inventory in Rs.
Finished goods 1,10,000 95,000
Work-in-progress 70,000 80,000
Raw material 90,000 95,000
Additional information:-
Cost of goods available for sale Rs. 6,84,000
Total goods processed during the period Rs. 1,67,000
Direct material Rs. 1,93,000
Requirement:
a) determine raw material purchases
b) determine the direct labour cost incurred
c) determine the cost of goods sold. [10]
OR
3.a) What do you understand by direct material? What is indirect material? Give
examples.
b) For manufacturing aluminum ingot, the cost of basic raw material, bauxite is
Rs. 40 per ton of aluminum whereas the electricity cost for procuring is
Rs. 1,000 per ton. Some people therefore consider electricity as the raw material for
aluminum. Would you agree? Justify your answer. [5+5]
R17
S
4.a) In a factory two types of radios are manufactured, Orient and Classic models. From
the following particulars, prepare a statement showing cost and profit per radio sold.
There is no opening or closing stock.
Particulars Orient (Rs.) Classic (Rs.)
Materials 27,300 1,08,680
labour 15,600 62,920
Works cost charged at 80% on labour and office on-cost is taken at 15% on works
on-cost. The selling price of both radios is Rs. 1,000. 78 orient radios ad 286 classic
radios were sold. Find out profit as per financial accounts assuming that the actual
works expenses amounted to Rs.64,000 and office expenses totaled Rs.46,800/.
b) What do you understand by equivalent production? [7+3]
OR
5. A company produces three products A,B and C from a joint process. Relevant costs
and other data are given below:
Particulars Joint process Rs. Product A,Rs. Product B,Rs. Product C,Rs.
Materials 20,000 1,500 3,500 2,000
Labour 8,000 1,000 1,000 1,500
Expense 4,000 500 1,000 500
Total 32,000 3,000 5,500 4,000
particulars Product A Product B Product C
Sales value (Rs.) 10,000 25,000 15,000
Selling and distribution expenses (as
percentage of sales value)
20% 20% 20%
Estimated net profit (as % of sales value) 20% 10% 20%
Prepare a statement showing the apportionment of joint costs over the different
products, stating clearly the reasons for the basis adopted. [10]
6. XYZ Co. Ltd. currently operates a single production shift. The operating results of
the company for the year just ended show the following:
Rs. Rs.
Sales (10,000 units) 3,60,000
Direct materials 1,20,000
Direct labour 1,00,000
Variable overheads 20,000 2,40,000
Contribution 1,20,000
Fixed overheads 90,000
-----------
Profit 30,000
The company is planning for the activity of the next year. Sales demand exists for an
extra 6,000 units (at the existing sales price) which could be made in a second shift.
The labour costs in the second shift would be the same as in the first shift plus a
second-shift premium. The second shift is paid at time-and ?a-quarter. Additional
fixed overheads of Rs. 10,000 would be incurred, but a bulk purchase discount of
5% would be obtained on all quantities of material bought. Should the second shift
be opened up? [10]
OR
S
FirstRanker.com - FirstRanker's Choice
Code No: 743AQ
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, December - 2019
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 ? 5Marks = 25
1.a) What are the different classification of costing? [5]
b) How would you treat abnormal gain? [5]
c) What are the features of marginal costing? [5]
d) What are the assumptions of break-even analysis? What are its uses? [5]
e) What are the objectives of budgetary control system? [5]
PART - B 5 ? 10 Marks = 50
2. The following inventory data relate to a company:
Particulars Beginning inventory in Rs. Ending inventory in Rs.
Finished goods 1,10,000 95,000
Work-in-progress 70,000 80,000
Raw material 90,000 95,000
Additional information:-
Cost of goods available for sale Rs. 6,84,000
Total goods processed during the period Rs. 1,67,000
Direct material Rs. 1,93,000
Requirement:
a) determine raw material purchases
b) determine the direct labour cost incurred
c) determine the cost of goods sold. [10]
OR
3.a) What do you understand by direct material? What is indirect material? Give
examples.
b) For manufacturing aluminum ingot, the cost of basic raw material, bauxite is
Rs. 40 per ton of aluminum whereas the electricity cost for procuring is
Rs. 1,000 per ton. Some people therefore consider electricity as the raw material for
aluminum. Would you agree? Justify your answer. [5+5]
R17
S
4.a) In a factory two types of radios are manufactured, Orient and Classic models. From
the following particulars, prepare a statement showing cost and profit per radio sold.
There is no opening or closing stock.
Particulars Orient (Rs.) Classic (Rs.)
Materials 27,300 1,08,680
labour 15,600 62,920
Works cost charged at 80% on labour and office on-cost is taken at 15% on works
on-cost. The selling price of both radios is Rs. 1,000. 78 orient radios ad 286 classic
radios were sold. Find out profit as per financial accounts assuming that the actual
works expenses amounted to Rs.64,000 and office expenses totaled Rs.46,800/.
b) What do you understand by equivalent production? [7+3]
OR
5. A company produces three products A,B and C from a joint process. Relevant costs
and other data are given below:
Particulars Joint process Rs. Product A,Rs. Product B,Rs. Product C,Rs.
Materials 20,000 1,500 3,500 2,000
Labour 8,000 1,000 1,000 1,500
Expense 4,000 500 1,000 500
Total 32,000 3,000 5,500 4,000
particulars Product A Product B Product C
Sales value (Rs.) 10,000 25,000 15,000
Selling and distribution expenses (as
percentage of sales value)
20% 20% 20%
Estimated net profit (as % of sales value) 20% 10% 20%
Prepare a statement showing the apportionment of joint costs over the different
products, stating clearly the reasons for the basis adopted. [10]
6. XYZ Co. Ltd. currently operates a single production shift. The operating results of
the company for the year just ended show the following:
Rs. Rs.
Sales (10,000 units) 3,60,000
Direct materials 1,20,000
Direct labour 1,00,000
Variable overheads 20,000 2,40,000
Contribution 1,20,000
Fixed overheads 90,000
-----------
Profit 30,000
The company is planning for the activity of the next year. Sales demand exists for an
extra 6,000 units (at the existing sales price) which could be made in a second shift.
The labour costs in the second shift would be the same as in the first shift plus a
second-shift premium. The second shift is paid at time-and ?a-quarter. Additional
fixed overheads of Rs. 10,000 would be incurred, but a bulk purchase discount of
5% would be obtained on all quantities of material bought. Should the second shift
be opened up? [10]
OR
S
7.a) A company which producing different brands of toilet soaps is considering reducing
the price of one of its brands as it is possible to reduce cost if volume could be
increased. What are the special points to be considered before effecting reduction in
price?
b) What are the areas of management decisions opened up by the application of
marginal costing method? [5+5]
8. A Ltd. maintains, a margin of safety of 37.5% with an overall contribution to sales
ratio of 40%. Its fixed costs amount to Rs. 5 lakhs.
Calculate the following:
a) Break-even sales
b) Total sales
c) Total variable costs
d) Current profit
e) New margin of safety if the sales value is increased by 7.5%. [10]
OR
9.a) Following is the statement cost and sales:
Fixed cost Rs. 1,80,000
Variable costs Rs. 2,80,000
Sales Rs. 4,20,000
Determine how much sales should be increased in order to reach the breakeven
point.
b) Distinguish between break-even chart and profit volume chart. [5+5]
10.a) What is zero-based budgeting? What are the advantages of zero-based budgeting?
b) What are the steps in installation of budgetary control system? [5+5]
OR
11. The expenses for budgeted production of 10,000 units in a factory are given below:
Particulars Per unit (Rs.)
Materials 70
Labour 25
Variable overhead 20
Fixed overhead (Rs.1,00,000) 10
Variable expenses (direct) 5
Selling expenses (10% fixed) 13
Distribution expenses (20% fixed) 7
Administration expenses (Rs.50,000) 5
Total cost per unit( to make and sell) 155
Prepare a budget for production of a
a) 8000 units
b) 6000 units and
c) Indicate cost per unit at both the levels. [10]
--ooOoo--
S
FirstRanker.com - FirstRanker's Choice
This post was last modified on 23 October 2020