[April-19]

[MBA-104]
BBA/IMBA & BBA(FM) Degree Examination
II SEMESTER
COST & MANAGEMENT ACCOUNTING
(Effective from the admitted batch 2015–16)
(FM: Effective from the admitted batch 2018-19)
Time: 3 Hours Max.Marks: 60
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Instructions: All parts of the unit must be answered in one place only.
Figures in the right hand margin indicate marks allotted.
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SECTION-A
1. Answer any FIVE of the following:
Each answer should not exceed one page. (5x3=15)
a) Define Cost Accounting.
b) What is CVP Analysis?
c) Explain Rowan wage payment plan.
d) What is apportionment?
e) What is margin of safety?
f) What is opportunity cost?
g) What is master budget?
h) What is zero-base budgeting?

SECTION-B
Answer all questions: (5x9=45)
UNIT-I
2. a) Explain in detail the tools and techniques of management
accounting
OR
b) Explain the objectives and functions of Cost Accounting
UNIT-II
3. a) Discus the effect of increasing and falling prices on FIFO and LIFO
methods of pricing material issue
 OR
b) The following transactions took place in respect of an item of
material: 1st September opening balance: 400 units @ 10 each.
Date Receipts Issue
Quantity Rate (Rs.) Quantity
02-09-2017 300 12 --
05-09-2017 -- -- 400
10-09-2017 400 14 --
15-09-2017 -- -- 300
18-09-2017 200 16 --
20-09-2017 -- -- 180
22-09-2017 250 15 --
26-09-2017 -- -- 150
Record the above transactions in the stores ledger, pricing the
issues at LIFO and Weighted Average method.
UNIT-III
4. a) Discuss the various cost Concepts for decision making by the
management in an organization
OR
b) The following particulars are relate to a company for a period of
Three months:
Raw materials (1-1-2012) 55,000
Raw materials (31-3-2012) 35,000
Factory wages 80,000
Materials purchased 60,000
Sales 1,54,000
Indirect expenses 10,000
Stock of finished goods (1-1-2012) NIL
Stock of finished goods (31-3-2012) 30,000
No. of units produced during the period was 2,000. Prepare
a statement of cost for the period and compute the price to be quoted
for 500 units to realize the same profit as for the period under
review, assuming no alternation in wages and cost of materials
UNIT-IV
5. a) What is meant by cost-volume-profit analysis? Explain its application
in managerial decision making
 OR
b) The sales turnover and profit during two periods were as follows:

Period Sales (Units in lakhs) Profit (Rs. in lakhs)

1 20 2
2 30 4
Calculate: (a) P/V ratio. (b) The sales required to get cash profit of
Rs. 5 lakhs. (c) The profit when sales are Rs. 10 lakhs
UNIT-V
6. a) What is budgeting? Explain the various essentials of a budgetary
control
OR
b) The budgeted costs of a factory to produce 10,000 units are as
follows:
Per Unit
Rs.
Materials 100
Labour 60
Variable Factory overhead 40
Fixed Factor y overhead (Rs. 2,00,000) 20
Administrative Expenses (Rs. 1,00,000) 10
Selling Expenses (10% fixed) 28
Distribution Expenses (20% fixed) 16
Prepare a budget for 8,000 units and 12,000

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