MANAGERIAL ACCOUNTING GROUP ASSIGNMENT-MAY 2014

This assignment must be submitted in a group of 2 People each, and hand-written. There will be a random
questioning (viva) done, while you submit the assignment. Kindly submit by 4
th
June-2014.
Q-1.

Q-2



Q-3

Q-4


Q-5

Q-6

Q-7 Write Short Notes on the following:- Break-even analysis, Liquidity Ratios, Activity Based Costing,
Trial balance and suspense account, Sunk costs and out-of-pocket costs
Q-8. Explain any four accounting principles/concepts- with suitable illustrations? Define
management accounting and explain the nature of the same. Distinguish between management
accounting and financial accounting.

Q-9 (a).Explain the tools available to analyze the Financial Statements
(b). From the following information compute: (i)Material cost variance (ii) Material price variance
iii) Material mix variance iv) Material yield variance v) Material Usage variance
The standard Mix of a product The actual consumption :
X: 600 units @ $0.15 per unit X: 640 units @ $0.20 per unit
Y: 800 units @ $0.20 per unit Y: 960 units @ $0.15 per unit
Z: 1000 units @ $0.25 per unit Z: 840 units @ $0.30 per unit



Q-10 A Company is producing three types of products A, B and C. The sales of the company are divided into
three areas X, Y and Z. The estimated sales and advertising cost for the next year are as under:-
Products Territories
X Y Z
Sales
A $25,000 $10,000 -
B $15,000 - $40,000
C - $35,000 $20,000
Advt. cost X Y Z Total
Local direct cost $3,200 $4,500 $4,200 $11,900
Common cost - - - $5,800 17,700
You are required to prepare a statement showing territory-wise advt. cost expressed as a percentage of
sales. As there is a budget for advt cost for each of the Products, show the cost allocation to products.
The allocation of advertising cost should be based on sales as given above.

Q-11 SV Ltd a multi-product company furnishes you the following data relating to the current year:-
First half of the year Second half of the year
Sales $90,000 $100,000
Total cost $80,000 $ 86,000
Assuming that there is no change in prices and variable costs and that the fixed expenses are incurred
equally in the two half-year period. Calculate for the year (1).The PV ratio (2).Fixed expenses (3). BEP in
value and (4). Percentage of margin of safety

Q-12 Define Budgeting and explain the advantages and limitations of Budgeting

Q-13 What is the significance of the term variance relating to standard costing?
What are the differences between standard costing and Budgeting?
Q-14 The cost of an article at the capacity level of 5000 units is given under below. For a variation of 25%
in capacity above or below this level, the individual expenses vary as indicated under B-below:
A B (per cent)
Material cost $25,000 100 (variable)
Labour cost $15,000 100(Variable)
Power $ 1,250 80(Semi-var)
Repairs & maintenance $ 2,000 75(Semi-var)
Stores $ 1,000 100 (variable)
Inspection $ 500 20 (Semi-var)
Admn. OH $ 5,000 25(Semi-var)
Selling OH $ 3,000 50 (Semi-var)
Depreciation $10,000 100(fixed)
Total $ 62,750
Cost per unit 12.55
Prepare a production cost budget at 4000 units and 6000 units