“Do not write anything on question:paper except Roll Number, otherwise it shall be deemed as an act of indulging in unfair means and action shal be taken as per rules. | roti no.L$ MBA. (SI) 4 “Acetg, For Mana Master of Business Administration (Semester—t) Examination, 2010 €-104: ACCOUNTING FOR MANAGERS Time—Thce Mai Mans Sb er PART—A All questions are compulsory. Answer of each question should not execed 30 words. Each question carries 1 mark, 1, @) Business is an independent entity. Explain. C@P>What is meant by full disclosure 2 (©) Give any four examples! of intangible assets. (@ What are non-cash transactions ? Give four examples. NM—a556, 1 (mia) ()_ Explain two differences between contribution and profit. (0 What is sunk cobt ? (Cg What is key-bualget factor ? fame the methods of segregation of si-variable ~~ coat into fixe and variable cost, (CQ) What is meant by cash equivalents ? (Explain any two features of Zero-Base Budgeting. PART—B ‘Attempt any ONE question from each group. ‘The answer should not exceed 280 words each. Each question will carry 35 marks. ao « GROUP—1 1, (A) Write shore notes on : (2) Generally Accepted Accounting Principles. (©) The Going Concern Concept on (©) Explain the following (@) Balance Sheet © Curent (©) Curent Liabilities (@ Provisions (©) Capital Expenditure. 4556 2 _2. cRour—2 (A) Te dnmual consumption of a factory working 300 days year is $000 units of raw material costing RS 10 per unit. Placing each onder coms Rs. 45 and the carying cont is 10% per year of average inventory (@) Find the Ezonomic Onder Quantity (©) Onthe assumption that company fllows the "BOQ purchasing poy, that procurement time {is 10 days and thatthe safety stock is ~-300.units, find the Reorder level, Maximum atthe beranng deh of the year was Beginning End Amount — Amount Current Assets Cash 3,400 1,400 Debtors 4240 4,120 Stock 6320 s.840 Prepaid Expenses 320 280 NMs—4556 a (Coma) 4 ay Beginning End ‘Amount Amount Current Liabilities : Bank Loan, = 4,000 Short-term Loan — 1,000 Trade Creditors 2520 1,680 Unpaid Expenses. 4200 -3,200 Prepare a statement showing changes in Net ‘Working Capital of the business GRouP—3 3 POT nt poi K Ld shown by cont scouts forthe year ended 31-3-08 was Rs, 3,55,000. A scrutiny of the figures ofthe financial accounts and the cost accounts revealed the following (2), Adrmnistrative overhead underecovered in cost accounts Rs. 3,700 (Factory ovethead oversecovered in cos accounts Rs, 5,000 (6). Depreciation oer charedin facial azonis Rs, 10,000 ( La Dinterest om investments Rs. $,000 ~"(e) Lass on sale chaged to financial accounts Rs. 6000 1 Aboormalgbour wags caren nancial accouts Rs, $0,000 M4556 4 (Coma)4. irk sel etn et ne 70.000 Deak och cote fs Rs, 1,000 regan id dal ee we 2000 biomed He cl ‘he facet Re. 700 Pe Seed o eiaeta be nil of facet Wi ceca, — OR (B) What is Cost Jeiee 2 Explain the accounts generally mainfsined in i with examples. GROUP—4 (A) What do you mean by Job Costing ? To which industies si applieable ? Disess the main features and te procedure ofjb cost accounting. oR (@) 1000 nite of « matral were introduced in « process A at cost of Rs. 50,000-—Rs. 30,000 ‘and Rs. 15,500 were spent on labour and overhead respstivaly inthe process Norn wastage was determined ta be 5%. Wastage is sold @ Rs. 10 per uit, actual production is 920 units, calculate the vale of sbaonmal loss. Each question is of 7 marks. GROUP—s 1m the following information relating to « ‘manufacturing process of a company calculate labour variances Standard Rate of Labour ____Rs. 5 per hour ‘Actual Rate of Labour Rs. 6 per hour Standard Time 250 hours ‘Actual Time Taken 200 hours oR (B) Explain the procedure of formulation of Zero Base’ Budgeting. PART Attempt any THREE questions. wswer of each question should be limited upto $00 words. Calculate Material Vasianees from the following information’ The signal material cost to produce a ton of Chemical X is — (600 kgs of Material A @ Rs. 10 per ka 800 kgs of Material B @ Rs. $ per kg 1000 kgs of Material C @ Rs. 6 per ke. During a period 5:5 tonnes of Chemical X were produced from the usage of -— 3500 kgs of Material A ata cost of Rs. 9 per ky 4000 kgs of Material B at a cost of Rs. 6 per kg 5000 kgs of Material Cat a cost of Rs. 7 per ky, NMa—1556 ‘ (Contd)2. Accompany has three products A, B and C is thinking to discontinue one product and utilise the existing facilities in increasing production of other two products by 100% Al ate Production (in units) 16:000 ‘Material Cost (per uni) Rs. 30 Wages (per unit) Rs. 15 ‘Variable Overhead (pe wit) Rs 5 Fixed Overhead (per unit) Ro Rs. 59 Sling Pie (pr ait Rs 80 Rs. 125 Re2t RG From the above information you are required to suggest Jiscontinuance of which product is going to be most profitable. 3. Explain the meaning of Cash Budget. How is it prepared ? Discuss its importance. 4. The expenses for production of 20000 units M Steels Ltd. are as follows Rs. (per unit) Material 55 Labour 35 ‘Variable Overhead 25 Fixed Overhead 8 Rs. (per unit) ‘Variable Overhead 7 Selling Expenses (30% fixed) 10 Distribution Expenses (40% fixed) is ‘Adoninistative Expenses (Rs, 80,000) 4 159° Prepare a flexible budget for 16000 units and 12000 units if goods are sold @ Rs. 200 per unit. Why is it necessary to provide for depreciation of ‘assets? What is “Written Down Value Method? of providing depreciation ? How does it differ from ‘Straight Line Method’ ? Explain with suitable ‘examples. Nws—4556 i;