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Unique Paper Code 875

Revised 0 of 19

Management AccountingDecember 2024

B.Com (Programme) · 5 questions

Duration: 3 HoursMaximum Marks: 90

Reworded by Kunji from the printed paper. The original paper belongs to the University of Delhi. See DU's question bank.

Before you start

Numbers and theory. 7 numerical parts and 12 theory parts. Numericals take longer to lay out, so give them your freshest time.
Pace. Two minutes a mark: about 36 minutes for each 18-mark question, with nothing spare in 3 hours. Pick your side of each OR before you start writing.
Keep score. Every part opens a worked answer checked against the books. Turn the key when you have revised it; the boxes at the top fill in, on this device.

1.

18 marks
· ~36 min

(a)Management accounting: meaning, nature and scopeasked 2×What is meant by Management Accounting? Discuss in brief its nature and its scope?(9)

(b)Cost, revenue and profit centres in responsibility accountingasked 2×With reference to Responsibility Accounting, write notes on : (i) Cost Centre (ii) Revenue Centre, and (iii) Profit centre(9)

OR

(c)How management accounting differs from cost accounting and financial accountingasked 2×In what way does Management Accounting differ from Cost Accounting and from Financial Accounting?(9)

(d)Financial and non-financial methods of performance measurementasked 2×Which are the financial and the non-financial methods of measuring performance? Explain them with examples.(9)

2.

18 marks
· ~36 min

(a)Flexible budget: operating profit at 60%, 70% and 80% at the current and the proposed priceasked 2×Arya Steel Ltd. makes a single product for which there exist market demand for additional quantity. Its Present Sales of Rs. 54,000 per month use only 60% of the Plant's capacity. The Marketing Manager assures that with…(12)

(b)Programme budgeting and performance budgeting distinguishedDifference between Programme budgeting and Performance Budgeting?(6)

OR

Budgetary control: meaning, steps to install it, advantages and limitationsWhat is your understanding of a Budgetary Control system? In a manufacturing concern, what are the various steps involved in installing a budgetary control system? Discuss in detail its advantages and its limitations.(18)

3.

18 marks
· ~36 min

(a)Sales variances: volume, price, mix and totalasked 2×For April 2024, K Ltd gives the following information on its budgeted sales and actual sales : Calculate these Variances : (i) Volume Variance of Sales (i) Price Variance of Sale (ii) Mix Variance of Sale (iv) Total…(12)

(b)Estimated cost and standard cost distinguishedDistinguish 'Estimated Cost' from 'Standard Cost'.(6)

OR

(c)Labour cost, rate, efficiency and mix variances for a gangasked 2×100 skilled, 40 semi-skilled and 60 unskilled workmen were to work so that a contract job could be completed within 30 weeks. The standard weekly wages Rs. 60, Rs. 35 and Rs. 25 respectively. The job was actually…(12)

(d)Standard costing: meaning, advantages and limitations as a technique of cost controlWhat is meant by Standard costing? Explain briefly, as a technique of Cost Control, the advantages and limitations of standard costing.(6)

4.

18 marks
· ~36 min

(a)Income statements for two years under absorption costing and marginal costingasked 2×PQR Ltd. has given its figures for 2022 and 2023 : (i) Using Absorption Costing, prepare the income statement for both years. (ii) Using Marginal Costing, prepare the income statement for both years.(12)

(b)Break-even analysis and chart; the P/V ratio and its importanceasked 2×What is your understanding of Break-Even Analysis? Show the Break-Even Chart graphically? (ii) What is P/V ratio? Discuss the importance of it.(6)

OR

(c)P/V ratio, break-even point, profit, required sales and margin of safety from two years' resultsasked 2×The following data are given : Calculate : (i) P/v Ratio (ii) Break Even Point (iii) The Profit when sales are Rs. 1, 80,000 (iv) The Sales required for earning a profit of Rs. 11,000 (v) Margin of Safety for Year 2023…(12)

(d)Absorption costing and marginal costing distinguishedasked 2×Distinguish between Marginal Costing and Absorption Costing?(6)

5.

18 marks
· ~36 min

(a)Marginal and differential costing; imputed and opportunity cost; relevant and irrelevant costasked 2×For each pair, state the differences between the two : (i) Differential costing; Marginal costing. (ii) Opportunity cost; Imputed cost. (iii) Relevant cost; Irrelevant cost(12)

(b)Choosing the most profitable sales mix of two productsasked 2×Dev Ltd engaged in manufacturing two products, namely 'A' and 'B' Recommend the sales mix, from these, that should be adopted : (i) A 300 units & B 600 units (ii) A 450 units & B 450 units (iii) A 600 units & B 300 units(6)

OR

(c)Product mix under a raw-material quota: ranking by contribution per rupee of materialasked 2×Neel Ltd., which makes three products, gave the following data for 2023 : Fixed expenses are estimated to be Rs. 68, 00,000. All three products use a single raw material. Raw material is short in supply, and to meet…(12)

(d)Six circumstances in which price may be fixed below variable costasked 2×Briefly explain six circumstances in which a selling price may be fixed at a price that us less than the variable cost.(6)

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