OCTOBER 2011 Time : Three hours

P/ID 37504/PBAD
Maximum : 80 marks

PART A (5 5 = 25 marks) Answer any FIVE of the following. All questions carry equal marks. 1. Explain the meaning and purpose of management accounting. 2. 3. 4. 5. 6. 7. 8. What are accounting concepts? Explain briefly. What are the importance of ratio analysis? What are the advantages of pay-back period? What is flexible budget? Explain briefly. What are the various basis of cost allocation? What are the uses of break-even analysis? What are the qualities of good report?

PART B (4 10 = 40 marks) Answer any FOUR of the following. All questions carry equal marks. 9. From the following data you are required to calculate break-even point and net sales value at this point. Rs. Direct material cost per unit 8 Direct labour cost per unit 5 Fixed overheads 24,000 Variable overheads @ 60% on direct labour Selling price per unit 25 Trade discount 4% Standard mix of a product is X Y Z 600 units at 15 paise per unit 800 units at 20 paise per unit 1000 units at 25 paise per unit.

10.

The consumption was X Y Z 640 units at 20 paise per unit 960 units at 15 paise per unit 840 units at 30 paise per unit

Calculate the material variances. 2

P/ID 37504/PBAD

11.

Distinguish between funds flow statement and cash flow statement. Explain the various elements of cost. Give out a proforma cost sheet with imaginary figures. Discuss briefly nature and conditions applicable of ratio analysis for inter and intra firm comparison. What is budgetary control? Explain the merits and demerits. PART C (1 15 = 15 marks) Compulsory.

12.

13.

14.

15.

The cost of sale of product A is made up as follows: Rs. Materials used in manufacturing Materials used in packing Materials used in selling the product Materials used in factory Materials used in office Labour required in producing Factory supervision cost Direct expenses Factory Indirect expenses Factory 3 5,000 1,000 150 75 125 1,000 200 500 100

P/ID 37504/PBAD

Rs. Office expenses Depreciation office building and equipment Depreciation Factory Selling expenses Freight Advertising 125 75 175 350 500 125

Assuming that all the products manufactured are sold, what should be the selling price to obtain a profit of 25% on selling price? Illustrate in a chart form for presentation to your manager the division of costs for product A.

P/ID 37504/PBAD