Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA (Master of Business Administration) 3rd Semester (Third Semester) R15 2019 May 723AG Strategic Management Accounting Previous Question Paper
Code No: 723AG
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, April/May-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 ? 5 Marks = 25
1.a) Discuss about the role of accounting information in Planning and Control. [5]
b) Explain about the treatment of Abnormal Loss/Profit in Process Costing. [5]
c) Explain the importance of Profit Planning in Marginal costing Applications. [5]
d) Discuss about the need for Inter firm Comparison. [5]
e) Define Budgetary Control. Explain the steps involved in Budgetary Control. [5]
PART - B 5 ? 10 Marks = 50
2. Distinguish between Management Accounting, Financial Accounting and Cost
Accounting. [10]
OR
3. Following information is made available from the costing records of a factory
a) The original cost of the machine : 1,00,000
Estimated Life : 10 years
Residual Value : 5000
Factory Operates 48 hours per week : 52 weeks in a year
Allow 15% towards machine maintenance down time.
5% (of productive time assuming unproductive) may be allowed as setting up time
b) Electricity by t he machines is 10units per hour at a cost of 50 paise per unit
c) Repairs & Maintenance cost is Rs.500 per month.
d) Two operators attend the machine during operations along with two other
machines. Their total wages including fringe benefits amounting to Rs.5000 per month
is paid
e) Other overheads attributable to the machine are Rs10, 431 per year.
Using the above data, calculate Machine Hour Rate. [10]
4. The accounts of X LTD show for three months ending 30th June, 2010
Materials 10, 00,000
Direct Labor & Machine Labor Wages 15, 00,000
Works overhead Expenditure 3, 00,000
Establishment & General Expenses 2, 24,000
Show the works cost, the Total cost of manufacturer, the percentage that the works
overhead cost bears to the Manual and machine labor wages and the percentage that
establishment and general Expenses to the works cost.
What price should the company quote on the basis of the above to the manufacture of
an electric washing machine, which it is estimated, will require an expenditure of
Rs.800 & Rs.600 in wages, so that it will yield a profit of 15% of the total cost. [10]
OR
R15
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Code No: 723AG
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, April/May-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 ? 5 Marks = 25
1.a) Discuss about the role of accounting information in Planning and Control. [5]
b) Explain about the treatment of Abnormal Loss/Profit in Process Costing. [5]
c) Explain the importance of Profit Planning in Marginal costing Applications. [5]
d) Discuss about the need for Inter firm Comparison. [5]
e) Define Budgetary Control. Explain the steps involved in Budgetary Control. [5]
PART - B 5 ? 10 Marks = 50
2. Distinguish between Management Accounting, Financial Accounting and Cost
Accounting. [10]
OR
3. Following information is made available from the costing records of a factory
a) The original cost of the machine : 1,00,000
Estimated Life : 10 years
Residual Value : 5000
Factory Operates 48 hours per week : 52 weeks in a year
Allow 15% towards machine maintenance down time.
5% (of productive time assuming unproductive) may be allowed as setting up time
b) Electricity by t he machines is 10units per hour at a cost of 50 paise per unit
c) Repairs & Maintenance cost is Rs.500 per month.
d) Two operators attend the machine during operations along with two other
machines. Their total wages including fringe benefits amounting to Rs.5000 per month
is paid
e) Other overheads attributable to the machine are Rs10, 431 per year.
Using the above data, calculate Machine Hour Rate. [10]
4. The accounts of X LTD show for three months ending 30th June, 2010
Materials 10, 00,000
Direct Labor & Machine Labor Wages 15, 00,000
Works overhead Expenditure 3, 00,000
Establishment & General Expenses 2, 24,000
Show the works cost, the Total cost of manufacturer, the percentage that the works
overhead cost bears to the Manual and machine labor wages and the percentage that
establishment and general Expenses to the works cost.
What price should the company quote on the basis of the above to the manufacture of
an electric washing machine, which it is estimated, will require an expenditure of
Rs.800 & Rs.600 in wages, so that it will yield a profit of 15% of the total cost. [10]
OR
R15
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5. Write a short note on the following
a) Inter-Process Profits
b) By Products
c) Equivalent Production [10]
6. XYZ Ltd manufactures auto parts. The following cost is incurred for process in
1, 00,000 units of a component.
Direct Material Cost Rs. 5 Lakhs
Direct Labor Cost Rs. 8 Lakhs
Variable Factory Overheads Rs. 6 Lakhs
Factory Overheads Rs. 5 Lakhs
The Purchase price of the component is Rs.22. the fixed overhead would continue to
be incurred even when the component is bought from outside although there would be
reduction to the extent of Rs.2, 00,000.
Required:
a) Should the part be made or bought, considering that the present facility when
released following buying decision would remain idle.
b) In case the released capacity can be rented out to another company for Rs. 1,50,000,
what would be the decision? [10]
OR
7. Discuss the importance of Marginal Costing Applications in Decision Making. [10]
8. The following information is given
Sales - 2, 50,000
Variable cost - 120000
Fixed cost - 20000
Calculate:
a) Break Even Point
b) New BEP it selling price reduced by 10%
c) New BEP if Variable cost is increased by 10%
d) New BEP if Fixed cost is increased by 10% [10]
OR
9. Define Inter-firm Comparison. Explain the types of Inter-firm Comparison. [10]
10. Prepare the Flexible Budget on the basis of the following information for the year
2007-08.
Direct Materials Rs. 6, 00,000
Direct Labor Rs. 4, 00,000
Direct Expenses Rs. 2, 00,000
Machine Expenses Rs. 1, 00,000
Motive Power Rs. 1, 00,000
Factory overheads (80% Fixed) Rs. 80,000
Office Overheads (60% Fixed) Rs. 1, 20,000
Selling Overheads (50% Fixed) Rs. 40,000
Sales (selling Price being Rs. 2000 per unit) Rs. 20, 00,000
During the year, all the units? produced were sold and the factory was working at the
capacity of 60%. The flexible Budget is to be prepared with the following assumptions
a) The capacity will be 75%
b) The price of direct material will increase by 25% & wages will increase by 20%.
[10]
OR
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Code No: 723AG
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA III Semester Examinations, April/May-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 ? 5 Marks = 25
1.a) Discuss about the role of accounting information in Planning and Control. [5]
b) Explain about the treatment of Abnormal Loss/Profit in Process Costing. [5]
c) Explain the importance of Profit Planning in Marginal costing Applications. [5]
d) Discuss about the need for Inter firm Comparison. [5]
e) Define Budgetary Control. Explain the steps involved in Budgetary Control. [5]
PART - B 5 ? 10 Marks = 50
2. Distinguish between Management Accounting, Financial Accounting and Cost
Accounting. [10]
OR
3. Following information is made available from the costing records of a factory
a) The original cost of the machine : 1,00,000
Estimated Life : 10 years
Residual Value : 5000
Factory Operates 48 hours per week : 52 weeks in a year
Allow 15% towards machine maintenance down time.
5% (of productive time assuming unproductive) may be allowed as setting up time
b) Electricity by t he machines is 10units per hour at a cost of 50 paise per unit
c) Repairs & Maintenance cost is Rs.500 per month.
d) Two operators attend the machine during operations along with two other
machines. Their total wages including fringe benefits amounting to Rs.5000 per month
is paid
e) Other overheads attributable to the machine are Rs10, 431 per year.
Using the above data, calculate Machine Hour Rate. [10]
4. The accounts of X LTD show for three months ending 30th June, 2010
Materials 10, 00,000
Direct Labor & Machine Labor Wages 15, 00,000
Works overhead Expenditure 3, 00,000
Establishment & General Expenses 2, 24,000
Show the works cost, the Total cost of manufacturer, the percentage that the works
overhead cost bears to the Manual and machine labor wages and the percentage that
establishment and general Expenses to the works cost.
What price should the company quote on the basis of the above to the manufacture of
an electric washing machine, which it is estimated, will require an expenditure of
Rs.800 & Rs.600 in wages, so that it will yield a profit of 15% of the total cost. [10]
OR
R15
www.FirstRanker.com www.FirstRanker.com
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www.FirstRanker.com
5. Write a short note on the following
a) Inter-Process Profits
b) By Products
c) Equivalent Production [10]
6. XYZ Ltd manufactures auto parts. The following cost is incurred for process in
1, 00,000 units of a component.
Direct Material Cost Rs. 5 Lakhs
Direct Labor Cost Rs. 8 Lakhs
Variable Factory Overheads Rs. 6 Lakhs
Factory Overheads Rs. 5 Lakhs
The Purchase price of the component is Rs.22. the fixed overhead would continue to
be incurred even when the component is bought from outside although there would be
reduction to the extent of Rs.2, 00,000.
Required:
a) Should the part be made or bought, considering that the present facility when
released following buying decision would remain idle.
b) In case the released capacity can be rented out to another company for Rs. 1,50,000,
what would be the decision? [10]
OR
7. Discuss the importance of Marginal Costing Applications in Decision Making. [10]
8. The following information is given
Sales - 2, 50,000
Variable cost - 120000
Fixed cost - 20000
Calculate:
a) Break Even Point
b) New BEP it selling price reduced by 10%
c) New BEP if Variable cost is increased by 10%
d) New BEP if Fixed cost is increased by 10% [10]
OR
9. Define Inter-firm Comparison. Explain the types of Inter-firm Comparison. [10]
10. Prepare the Flexible Budget on the basis of the following information for the year
2007-08.
Direct Materials Rs. 6, 00,000
Direct Labor Rs. 4, 00,000
Direct Expenses Rs. 2, 00,000
Machine Expenses Rs. 1, 00,000
Motive Power Rs. 1, 00,000
Factory overheads (80% Fixed) Rs. 80,000
Office Overheads (60% Fixed) Rs. 1, 20,000
Selling Overheads (50% Fixed) Rs. 40,000
Sales (selling Price being Rs. 2000 per unit) Rs. 20, 00,000
During the year, all the units? produced were sold and the factory was working at the
capacity of 60%. The flexible Budget is to be prepared with the following assumptions
a) The capacity will be 75%
b) The price of direct material will increase by 25% & wages will increase by 20%.
[10]
OR
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11. XYZ Ltd. furnishes you the following information
Products SQ In Units SP (Per Unit) AQ (In units) AP(Per Unit)
A
B
C
1050
1500
2100
Rs.2
Rs.3.25
Rs.3.5
1100
1400
2000
Rs.2.25
Rs.3.5
Rs.3.75
Calculate:
a) Material cost variance
b) Material Price variance
c) Material Usage Variance
d) Material Mix variance [10]
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This post was last modified on 23 October 2020