B.B.A. (Sem.V) Bus. Budg.

B.B.A Fifth Semester Examination, Dec.-2019

(Faculty of Commerce)
FOURTH PAPER
Business Budgeting
Paper Code: 41504

Time Allowed: Three Hours Maximum Marks: 70

(1) No supplementary answer book will be given to any candidate. Hence the candidates should write the answers precisely in
the main answer book only.
fdlh Hkh ijh{kkFkhZ dks iwjd mÙkjiqfLRkdk ugha nh tk;sxhA vr% ijh{kkfFkZ;ksa dks pkfg;s fd os eq[; mÙkjiqfLRkdk esa gh leLr iz’uksa ds mÙkj fy[ksAa
(2) All the parts of one question should be answered at one place in the answer book.
fdlh Hkh ,d Hkkx ds vUrxZr iwNs x, fofHkUu iz’uksa ds mÙkj mÙkj&iqfLrdk esa vyx&vyx LFkkuksa ij gy djus ds ctk; ,d gh LFkku ij gy djsAa
(Attempt all the questions)
¼lHkh iz’u djus vfuok;Z gS½
Part I(Question No.1&2) is compulsory & part II (Question No. 3, 4 & 5) has internal choice.
Hkkx izFke (iz’u la[;k 1 ,o 2a) vfuok;Z gS rFkk Hkkx f}rh; ds (iz’u la[;k 3, 4 ,o 5a) esa vkUrfjd fodYi gSA

PART-I
1. Answer all the questions. Each question carries 1 mark. 10x1= 10
(Words limit upto 20 words each)
fuEufyf[kr lHkh iz’uksa ds mRrj nhft;sA izR;sd iz’u 1 vad dk gSA
¼mRrj 20 'kCnksa ls vf/kd ugha gksuk pkfg,½
a) Define Budget.
ctV dh ifjHkk"kk nhft;sA
b) On what basis can budget be classified?
ctV dk oxhZdj.k dk vk/kkj D;k gSa\ le>kb;sA
c) What is Sales Budget?
foØ; ctV D;k gSa\
d) Discuss any two advantages of Zero Base Budgeting.
'kwU; vk/kkfjr ctV ds ykHk fyf[k;sA ¼dksbZ nks½
e) State the main objective of preparing Production Budget.
mRiknu ctV cukus ds izeq[k mÌs'; fyf[k;sA
f) What is meant by Cash Budget?
jksdM+ ctV ls D;k vk'k; gSa\
g) Define Management Information System.
izcU/k lwpuk iz.kkyh dks ifjHkkf"kr dhft;sA
h) Define Capital Budget.
iw¡th ctVu D;k gSaA
i) Write any two characteristics of Flexible Budget.
yksp'khy ctV dh dksbZ 2 fo'ks"krk,¡ fyf[k;sA
j) Explain difference between Budget and Budgeting.
ctV o ctVu esa vUrj crkb;sA
2. Answer all the questions. Each question carries 3 marks. 5x3= 15
(Words limit upto 50 words each)
fuEufy[kr lHkh iz’uksa ds mRrj nhft;sA izR;sd iz’u 3 vad dk gSA
¼mRrj 50 'kCnksa ls vf/kd ugha gksuk pkfg,½
a) Budget is a tool of Management. Explain.
ctV izcU/k dk vax gSA le>kb;sA P.T.O.
 b) Explain the difference between Fixed Budget and Flexible Budget.
fLFkj ctV o yksp'khy ctV esa vUrj crkb;sA
c) What is Master Budget? Why is it prepared?
ekLVj ctV D;k gSa o D;ksa cuk;k tkrk gSa\
d) Explain any three objectives of Performance Budget.
fu"iknu ctV ds dksbZ rhu mÌs'; crkb;sA
e) Explain the difference between Cash Budget and Finance Budget.
jksdM+ ctV o foÙkh; ctV esa vUrj crkb;sA

PART-II
Unit I
3. Define Budgeting. Discuss the advantage & limitation of budgeting. 15
ctVu dks ifjHkkf"kr dhft,A ctV ds ykHk o lhekvksa dk foospu Hkh dhft,A
OR
The expenses for production of 20,000 units in Neha Steels Private Limited are as follows: 15

Materials 55
Labour 35
Fixed Overheads (Rs. 1,60,000) 08
Variable Overheads 25
Variable Expenses (Direct) 07
Selling Expenses (30% Fixed) 10
Distribution Expenses (40% Fixed) 15
Administrative Expenses (Rs. 80,000) 04
Total cost per unit 159
Prepare flexible Budget for 16,000 units and 12,000 units assuming that administrative
expenses are constant for all levels of production.
;g ekurs gq, fd O;; lHkh mRiknu Lrjksa ij fLFkj gSa 16]000 bdkb;ksa rFkk 12]000 bdkb;ksa ds fy,
yksp’khy ctV cukb,A

Unit II
4. Why the Average Rate of Return Method of Capital Decision is called Unadjusted Rate
of Return Method? 15
iw¡th fu.kZ; dh vkSlr izR;k; nj fof/k dks vlek;ksftr izR;k; nj fof/k D;ksa dgrs gSa\
OR
The estimated cash inflow from a project requiring initial investment of Rs. 70,000
will be Rs. 10,000, Rs. 20,000, Rs. 30,000, Rs. 45,000 and Rs. 60,000 in first 5 years
respectively. 15
,d ifj;kstuk ftlesa izkjfEHkd fofu;ksx :- 70]000 gksx
a s] ls izFke 5 o"kksaZ esa Øe'k% :- 10]000] :- 20]000]
:- 30]000] :- 45]000 rFkk :- 60]000 ds vuqekfur jksdM+ vUrokZg ikzIr gksx a sA
Compute :-
(i) Net present value of project at 25% discount rate.
(ii) Profitability Index
(iii) Internal Rate of Return of the project.

Unit III
5. Define Performance Budgeting and explain its objectives. Prepare the performance
budget of a government department by taking imaginary figures. 5+5+5
fu"iknu ctV dks ifjHkkf"kr dhft;s rFkk blds mÌs'; crkb;sA fdlh ,d ljdkjh foHkkx dk fu"iknu
ctV dkYifud leadkas dh lgk;rk ls rS;kj dhft;sA
OR
What is Zero Base Budget? Describe essentials of effective Zero Base Budgeting. 15
'kwU; vk/kkfjr ctVu D;k gSa\ izHkko'kkyh 'kwU; vk/kkfjr ctV ds vko';d rRoksa dk o.kZu dhft;sA

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