This question paper contains .8+4 printed pages] Your Roll No. 9597 B.Com. (Hons.)/1 B Paper XVI—MANAGEMENT ACCOUNTING {Admissions of 2004 and onwards) Time: 3 Hours’ Maximum Marks : 75 (Write your Roll No, on the top immediately on receipt of this question paper.) Note: The maximum marks printed on the question paper are applicable for the candidates registered with the School of Open Learning. These marks will, however, be scaled “gown proportionately in respect of the students of regular colleges, at the time of posting of awards for compilation of result. Note :— Answers may be written either in English, or in Hindi; but the same medium should be used ‘throughout the paper. : fewoit ga We-Ta ar AN otal ar feed Reet oH 4 fre, Sr at sat a re we A aT, wate | PTO.(2) 9597 Attempt Five questions in all. All questions carry equal marks. +r Ure yea ata at vei Sie ear 2 “Management ‘Accouniing is the presentation of accounting information in such a way as to assist the management in the creation of policy and in the day to day operations of an undertaking.” Elucidate. IS” “sa Corem F tara qari A ca whe a wed fea sit = fe fred veersi at we afi a aoa ae a att sana F Ahre were 8 weer fr ae |” fae & ane Or (31a) A company producing a single product sells it at Rs. 50 per unit. The unit variable cost is Rs. 35 and fixed cost amounts | to Rs. 12 lakh per annum. With this data, you are required to calculate the following, treating each as independent of the other :ii) (iii) () () (3) : 9597 P/V Ratios and break-even sales New break-even sales if the variable cost increases by Rs. 3 per unit, without any increase in the selling price. Increase in the sales required if profits are to be increased by Rs. 2,40,000 Percentage increase/decrease in the sales-volume units to offset (a) An increase of Rs. 3 in the variable cost per unit. (b) A 10% increase in the selling price without affecting the existing profit quantum. Quantum of advertisement expenditure permissible ‘to increase the sales by Rs. 1,20,000, without affecting the existing profit quantum. 3x5=15 we ert we 8 wre a aan act et ok wa 50%. wd ae at at @ aact @ | ae at aad arma 35% 2 ae eat ama 2 re 3 oh 21 ee sie art frafefas = ve a a Qowada wat vies wore PTO.» @ (i) (iii) . () (4) 9597 PIV arya ik om 2a fort af mra-sreny fae? af aftach ara ASHI 33. aft gfe a ont ¢ ok free ah § aid ais tet eet | aff ort 9H ageat 240,000 % eH @ a fwd 4 fai wat seit eet 2 afiel & fai whem often afarash Fama (%) | aftadi ama wft gfe aa eat gfe i) (a) fast ste 8, age oy ofa A went fir atte, 10% at yi shag ery after at umn fire wk iat TY TTR 120,000 &. FA @ fou ied faa . ort at arn |(2) {) (5) 9597 Distinguish between Absorption costing and Marginal costing. . 75x2=15 arava amd fruit aie chat ard Pein A ST TAT | How is cost control different from cost reduction ? wT ST BA a ora from fea ver fir &? Or (staan) The standard material cost for 100 ke of chemical Dis - made up of : Chemical A—30 kg @ Rs. 4 per ke Chemical B—40 kg @ Rs. 5 per kg Chemical C—80 kg @ Rs. 6 per kg In a batch, $00 kg ‘of chemical D were produced from a mixof Chemical A—149 kg @ cost of Rs. 588 . Chemical A—220 kg @ cost of Rs. 1056 ‘Chemical A—440 kg @ cost of Rs. 2860 How do the yield, mix and the price factor contribute to the variance in the actual per 100 kg of chemical D over the standard cast. 15 PTO.(8) "9597 100 kg Ta De fire ar Tere ITA FAY oT TAR A—30 kg, 4 "7 ke Ht a THR B40 kg, 5%. WA kg BY a Tar C—80 ke, 6% UA ke we F. TH GT F dD WA FH S00 ke Fa fae & oR fea wa a : — A—140 kg, 588 %. Wa ke a ax a TAFT A—220 kg, 1056 %. AG kg Ht ze TAR A440 kg, 2860 %. Wht ke wl ex a ane ama @ sifie ta p ar We 100: ke maT F fre wR sees, fas sie aga ae am af 2. Proper interpretation of variances from standard is very important for the success of standard costing system as a tool for cost control, Mention some important factors that must be borne in mind while interpreting variances from standard. “18(7) 9597 ane @ yeu at sfza omen, are ame fret wet at ance & fau, arm fram A we soa Seo #4, ows weerpl fase cel eal a sete. sifrg ft ras @ vault at cred at waa am 4 van afer | (a) Or (31a) ABC limited has been working below normal capacity due to recestion. The directors of this company have been approached by a customer with an enquiry for a special purpose job. The costing, department estimated the following in respect of the job ; Direct materials Rs. 60,000, Direct Labour Hours 800 @ 25 per hour: Overhead costs (normal rates of recovery variable Rs. 10 per hour and fixed Rs. 15 per hour) The directors of the company seek your advice on the minimum price to be charged. Asssume that there are no production difficulties regarding the job. PTO.® (8) - 9597 apc fafits get & ero aA asa a an oH a We, ca Sai S Hewat F 7a cs mes, fate sea aa art & fan A ar ara Futter four Age eet & dies & Frente Way AMM 60,000 %. Wea AA We 800, 25 %. Wa wea a waatat ame (age tiadf st amie 10. 3fa Fer atk Tart is wie, 427) ert & fees at ot apo shea a area vee ae Bm vifie fe ad } die a a oe wand ae What is the difference between relevant cosis and ‘ ‘irrelevant costs ? Explain. 15 aia crn ait anima rnd A am sia 8 2 waren salfere 1 What.is meant by Zero based budgeting 2? What are the essentials of introducing a system of zero based budgeting ? Explain in ’ brief about the drawbacks of this system. 4+6+5=15. (9) 9597 WA anita ase frain Go oma a arma e ? qt anata ase fran aft et ae Se ST frend’ sar € 2 dae A ea wee Ht se at wren athit | ‘Or (are) The following are the details of the budgeted and the actual _cost of X Production Ltd. for six months from January -to June, 2011. From the figures given below, you are required to prepare the production cost budget from January to June, 2012. January—June 2011 Budget © / Actual Materia! cost” Rs. 40,00,000 Rs, 39,90,000 (2000 MT @ Rs. 2,000) (@ Rs. 2,100) Labour Cost Rs. 8,00,000 Rs. 7,99,920 (Rs. 20 per hour) (@ Rs. 22 per hour) Variable Overheads Rs, 2,40,000 Rs, 2,16,000 Fixed Overheads , Rs. 4,00,000 Rs, 4,20,000 The budgeted production for first half of 201! was 20,000 units, . whereas the company produced only 18,000 units during the period. : PTO,(10) 9597 In the first half of 2012, production is budgeted for 25.000 units. Material cost per tonne will increase from tast year’s actual by Rs, 100 butt it is proposed to maintain the consumption efficiency of 2011 as budgeted. Labour efficiency will be lower by another 1% and tabour rates will be Rs. 22 per hour, Variable and Fixed Overheads will go up by-20%' over 2011 actual, 15 x Henn faites @ ae ok amas ama at wpate, TART A IF 2011 am oe me & fare freafefian € 198 Ru aq siegi a ommat saad @ aE 2012 TH BT BN Aa wae Ta wee : WARS 2011 areaat at cra 40,00,000 &. 39.90,000 (2000 MT 2.000 &. (2,100 %. at am @ al @ 4) ay mt ara 8,00.000 ©. 799.920 B. (20 % oft Het) «= (22: &. ow Fen) aftadt softer _ 240.000 ®. 216.000 %. wart saftey 4,00,000 &. 420,000.(11) 9597 2011 @ waH sei A afer saret 20,000 afaet wl a wate Set + ga staf A Aaa 18,000 afre aa aT | 2012 & WIR avi A wafer srae7. 25,000 api al 2 1 arnt at af za ore fase ov a) arian amma @ 100 % ag wet wy ae wena % fie 2071 aa sain cea Ht aafea wad aa waa | am gam it ig 7m ah che am R22 & whe de en | fee ate ear svftora 2011 & arate ora S 20% SR TA | “The aim of responsibility accounting is not to place blame, instead, it is to evaluate performance and provide feedback so that future operations can be improved.” Discuss. 15 “fren erat sl aaa crortae, ae Fel aay afer ae Ponet a yeaa aun. sit -sfrafe aun? ate at dieensit st gaa a ae” fae ain | P.T.O.“(12 ) 9597 Or (a) What is Responsibility Ceritre ? Discuss briefly the nature of various types of responsibility centers. io fatert hg an sare 1 fat ver & fasten eel & trey wl aay A fade aif | (6) State the essential features of relevant cost. 5 a arn at ata fasomal a seca mir | 9597 . 12 8,000