Fall 2010

Bachelor of Business Administration-BBA Semester 3 BB0012 Management Accounting - 4 Credits

(Book ID: B0093)

Assignment Set- 1 (60 Marks) Note: Each question carries 10 Marks. Answer all the questions.

Q.1Explain the various functions of Management accounting ? Q.2 what are the various types of Ratios ? explain.

[10 Marks] [10 Marks]

Q.3 Calculate the fund from operation from the following details as on 31st march 1999. [10 Marks] 1. Net profit for the year ended 31st march, 1999 Rs. 6,50,000 . 2. Gain on sale of building Rs. 35,500 3.Written off good will 10%from the book value of Rs. 1,80,000 4.Old machine sold for Rs.6500 worth Rs.8000. 5.Rs.1,25,000 have been transferred to the general reserve fund. 6.Rs. 1,30,000 is provided for depreciation Q.4 write the meaning and objectives of cash flow statements? And write the various steps in preparing the cash flow statements? Q.5 Explain classification of costs? [10 Marks] [10 Marks] [10 Marks]

Q.6 What do you mean by overhead cost ? and explain the classification of overhead costs?

Fall 2010

Bachelor of Business Administration-BBA Semester 3 BB0012 Management Accounting - 4 Credits

(Book ID: B0093)

Assignment Set- 2 (60 Marks) Note: Each question carries 10 Marks. Answer all the questions.
Q.1 what is the meaning of job costing ? and explain the steps involved in job costing? [10 Marks] job costing Order-specific costing technique, used in situations where each job is different and is performed to the customer's specifications. Job costing involves keeping an account of direct costs (labor, machine time, raw materials) and indirect costs (overheads). Since both types of costs are usually closely related (a job requiring high input of labor and material is likely to consume more power, machine time, supervision time, inspection time, etc.) indirect costs may be applied as an estimated fraction of direct costs. Job costing methods are similar to contract costing and batch costing methods, and are used in construction, motion picture, and shipping industries, in fabrication, repair, and maintenance works, and in services such as auditing.

Q.2 The following information obtained from Mani &Co, concerning job no.2124. Material used Rs. 500, Direct wages Department A 10 hours @2.5 per hour B -8Hours @ Rs. 3 per hour and C- 5 Hours @ Rs. 4 Per hour. The estimated variable costs

for the three departments are as follows. Department A Rs. 7000 for 7000 labor hours. B Rs. 6000 for 3000 labor hours and c Rs. 4000 for 1000 labor hours. The estimated fixed over heads are Rs. 30,000 for 7500 normal working hours. Draw up a job cost sheet providing for profit @ 25% on selling price. [10 Marks]

Fall 2010

Q.3 Define Process costing and explain the process loss?

[10 Marks]

Q.4 Explain the advantages of breakeven charts?

ADVANTAGES:

[10 Marks]

It helps in determining the optimum level of output below which it would not be profitable for a firm to produce. It helps in determining the target capacity for a firm to get the benefit of minimum unit cost of production. It helps in deciding which products are to be produced and which are to be bought by the firm. Plant expansion or contraction decisions are often based on the break even analysis of perceived situation. Impact of changes in prices and costs on profit of the firm can also be analyzed. Sometimes management has to take decisions regarding dropping and adding of product to the product line. The break even analysis comes very handy in such situations. It evaluates the percentage financial yield from a project and thereby helps in the choice between various alternative projects. The break even analysis can be used in finding the selling price which would prove most profitable for the firm. By finding out the break even point, the break even analysis helps in establishing the point wherefrom the firm can start payment of dividend to its shareholders. It helps in determining minimum cost for a given level of output.

Q.5 Summarize the various type of budgets?

[10 Marks]

There are different types of Budgets used around the world, in every kind of forecasting activity. These are: - Production Budget - Cash Budget - Revenue budget - Expenditure Budget - Project Budget - Marketing Budget - Sales Budget

Q.6 Differentiate standard costing and budgetary control?

[10 Marks]

Fall 2010