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Your Roll No.....

Sr. No. of
Question Paper : 834

Unique Paper Code 2412083503

Name of the Paper Management Accounting
Name of the Course B.Com. (H) UGCF
Semester V- DSC

Duration : 3 Hours Maximum Marks: 90

Instructions for Candidates

1. Wrnite your Roll No. on the top immediately on receipt of this question paper.
2 Attempt All questions.
3. All questions carry equal marks.
4. Use of Simple Calculator is allowed.
5. Working notes should form part of your answer.
6. Answers may be written either in:English or Hindi; but the same medium should
be used throughout the paper.

4.

5.

6.
 834
aspects of cos.
1. accounting is an extension of managerial
(4 Management clearly distinguish
between cos
statement and
accounting. Explain the
(9)
accounting and management accounting.

responsibility accounting. What are the pre-requisites for

(0) Define and explain (9)
introducing responsibility accounting in a company'?

Or

else but financial and cost

(4) Management accounting is nothing
examine
accounting tailored to the requirements of management." Critically
the statement. (9)

(0) Explain the concept of responsibility accounting. Discuss creation of various

types of responsibility centres for its effective implementation. (9)

2. (a) Write a brief note on Budgeting Key Factor. (4)

(b) PSLimited produces and sells a single product. Sales budget for calendar
year 2025 as per quarters is as under:

Quarters II III IV
No. of units to 18,000 22,000 25,000 27,000
be sold

The year is expected to open with an inventory of 6,000 units of finished

products and close with inventory of 8,000 units. Production is customarily
scheduled to provide for 70% of the current quarter's sales demand plus
30% of the following quarter demand.

You are required to prepare quarterly as well as whole yearly statement

showing opening stock, production and closing stock of the product.
(14)
834
3

Or
The Budget Manager of a company is preparing a flexible budgct for the coming
accounting year. Thecompanyproduces asingle product. The following information
is provided:

Direct material costs Rs. 28 ner unit Direct labour averages Rs. I2.50 per hour
and requires 1.60

nours to prouce one unit of the nroduct Salesmen are paid a commission of
Rs.S per unit sold.

Fixed selling and administration expenses amount to Rs.3,75,000 per year.

Manufacturing overheads have been estimated in the following amounts under
given conditions of volume:

Volume of Production & Sale

Experse For 1,20,000 units(Rs.) For 150,000 units(Rs.)

Indirect materials 2,64,000 3,30,000

Indirect labour 1,50,000 1,87,500

Inspection 90,000 1,12,500

Maintenance 84,000 1,02,000

Supervision 1,98,000 2,34,000

Depreciation--Plant &
90,000 90,000
Equipment
Engineering services 94,000 94,000

Total Manufacturing 11,50,000

Overheads
9,70,000

Prepare a total production cost budget at a production level of 1,40,000 units

stating clearly the cost behavi0ur of each cost to output.

PT.0.
 4
834
costino
manufacturing concern which has adopted standard
3. ABCLimited.. a 2024:
following information for thc month ending March 31,
furnishes the
mix to produce 10 units of product Z is as under:
Ine standard
Material A 300 kg. (@ Rs.30 per kg

Material B 400 kg. (@ Rs.50 per kg

Material C 500 kg. @ Rs.40 per kg

produced
During themonth of March, 2024, 100 units of product Z were actually
and consumption was as under

Material A 3,200 kg. @ Rs.35 per kg

Material B 4,750 kg. @ Rs.55 per kg

Material C 4,350 kg. @ Rs.36 per kg
Required: Calculate the following material variances:
(i) Material Cost Variance
ü) Material Price Variance
(iii) Material Usage Variance
(iv) Material Mix Variance
(v) Material Yield Variance

Or

(a) Calculate : (i) Efficiency Ratio; (ii) Activity Ratio; (iii)

the following information :
Capacity Ratio, from
Budgeted Production 750units
Budgeted Hours per unit 5
Actual Production
780units
Actual Hours taken
4,000 (6)
 834 5
from thc
(b) Compute the sales variances (total, prico
and volume) following
figures:

Actual
Budgeted
Product/Quantity/Price Price (Rs.) Units Price (Rs.)
Units
4.800 30
A 4,000 25

2,800 45
B 3,000 50

75 2,400 70
2,000
800 105
D 1,000 100

(12)

production
4. (a) MFN Limited started its operation in 2022-23 with the total
available
capacity of 2,00,000 units. The following data for two years is made
to you :

2022-23 2023-24

Sales units 80,000 1,20,000

Total cost (Rs.) 34,40,000 45,60,000

There has been no change in the cost structure and selling price and it is

expected to continue in 2024-25 as well.

Selling price is Rs.40 per unit. You are required to calculate :

)) Break-Even Point (in units)

(9)
(ii) Profit at 75% of the total capacity

P.T.O.
 6
834 manufacturing company:
a
following datarelates to 400%
(b) The PresentUtilization =
units pcr annun.
4,00,000
PlantCapacity =
2023-24 were:
Actualfor the year
cost= Rs.20 per unit,
per unit, Material
Selling price = Rs. 50
and Fixed cost
costs = Rs. 15 per unit
Variable Manufacturing
Rs. 27,00,000.
utilization, the following proposal is considered :
Inorder to improve capacity
spend additionally Rs.3, 00,000in Sales
Reduce Selling price by 109% and
Promotion.
sold in order to increase profit by
How many units should be producedand
(9)
Rs. 8,00,000 per year?

Or

(a) What do you mean by P/V ratio? Discuss its significance in decision-making,
How it can be improved? (6)

(b) The Cost-Volume-Profit relationship of SRLtd. isdescribed by the equation:

Y= Rs.2,40,000 +0.6X, in which X represents sales revenue and Y is the
total cost (FC + VC) at the sales revenue / Volume represented by X.

Required :

(i) Identify the P/V Ratio.

(ii) What sales volume must be obtained to

break- even for the Company?
(i) Analyze Sales volume tobe required to
produce an income Rs.1,00,000.
(12)
834
7
5. SR Ltd. gives you the following details of its existing operations
20
Selling price (Rs.)
15
Variable Cost per unit (Rs.)
50,000
Fixed Cost (Rs.:)
25,000
Actual Output and Sales (units)
modernisation of its production
The management is considering a proposal for
operations.

be as follows :
As per this proposal the cost structure is estimated to

20
Selling price (Rs.)
10
Variable Cost per unit (Rs.)

Fixed Cost (Rs.) 1,50,000

are asked to give the following

As amanagement accountant of the company, you
calculations and advice for consideration by the management :

company will
(i)) The level of output under the proposed alternative where the
existing level of sales
earn the same amount of profit as being earned at
operations.

the proposed modernization

(ii) Range of sales where existing operations and
should consider the
will be more profitable. Whether, the cómpany
modernization of production facility at existing level of sales operations.

statement ofprofit under the two alternatives if the

(ii)) Prepare acomparative
company plansto produce and sell 30,000 units.

P.T.0.
 8

834 Or

management decision
of key factor in making with
(a) Explain the
concept
the criteria used
to measurethe relative profitability
discuss
examples? Also (6)
play.
key factor is in
When a
products A, B and C and for each of them uses
producesthree
(0) Isha Ltd.. X, Yand Z.
Relevant. data for June, 2024 are given
machines
three diferent
below :

A B C
Product
10,000 8,000 6,000
Selling Price per unit (Rs)
Variable cost per unit (Rs.) 7,000 5,600 4,000

Machine-wise hours required per unit:

20 12 4
Machine X

MachineY 20 18 6

Machine Z 20 6 2

Expected Demand (units) 200 200 200

Machine Zis identified as the bottleneck and its capacity is limited to 5,400
hours. Calculate the optimum product mix from above information and
ascertain the total profit at the mix so determined if fixed cost amounts to
Rs.7,80,000 (12)