Master of Commerce (M.Com.) MCom Accountancy SEM I 2018 19 Jun 2018-19 ADVANCE ACCOUNTANCY Cost & Management Accounting Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A newly started SSG Co.Ltd wishes to prepare Cash Budget from May. You are required to prepare a Cash Budget for the first six months from the following estimated revenue and Cash balance on May was Rs.10,000. A new machine is to be installed at Rs.30,000 on credit to be repaid by two equal instalments in July and August Sales commission at 2.5% on total sales is to be paid within the month following actual Rs.10,000 being the amount of second call may be received in July, share premium amounting to Rs.2,000 is also obtainable with second call
   • (a) Period of credit allowed by suppliers is to be two months
   • (b) Period of Credit allowed to customers is to be one month
   • (c) Delay in payment of overheads is to be one month
   • (d) Delay in payment of wages is 15 days (1.e % month)
   • (e) Assume cash sales to be 50% of total sales
2. Q1 Draw up a flexible budget for overhead expenses on the basis of the following data and determine the overhead rates at 70%, 80% & 90% capacity levels. [15 Marks]
3. Q2 Prakash Automobiles distributes its goods to regional dealer using a single lorry. The dealer’s premises are 40 Km away by road. The lorry has a capacity of 10 tonnes and makes the journey day fully loaded on the outward journeys and empty on return journey The following information is available for four weekly period during the year 2018 Cost of lorry (excluding tyres) Rs.4,50,000 Life of lorry 80,000 Km Cost of tyres Rs.6,250 Life of tyres 25,000 Km Estimated sale value of lorry at the end of its life Rs.50,000 The lorry operates on a five day week
   • (a) A statement to show the total cost of operating the vehicle for the four weekly period analysed into running costs and fixed costs
   • (b) Calculate vehicle cost per kilometre and per tonne kilometre
4. Q2 From the following particulars, calculate material variances including material sub variances. The standard mix required for a product is [15 Marks] Material A-60% at standard price Rs.40 per kg and Material B- 40% at standard price Rs.60 per kg Normal loss is 10% of total input Actual output obtained during the period was 3,600 units for which actual consumption of materials are:
5. Q3 produces and sales a single article at Rs.10 each. The marginal cost of production is Rs.6 each and fixed cost is Rs.400 per annum. [15 Marks]
   • (i) P/V Ratio (il) The Break-Even Sales (in Rs. And Nos.)
   • (iii) The sales to earn a Profit of Rs.500 at sales of Rs.3,000
   • (v) New Break Even Point if sales price is reduced by 10%
   • (vi) Margin of safety at sales of Rs.1,500 and
   • (vii) Selling price per unit if the Break Even Point is reduced to 80 units
6. Q3 The Financial Accountant of PSC Ltd has presented the following Product Performance Report for the year ended 31* March, 2018. [15 Marks] The Marketing Manager of the company has come up with a proposal that if the selling price of the product is reduced by 10% the quantity sold will go up by 25%. On the other hand the Costing Department is of the opinion that as most of the competitors have higher prices, the selling price should be increased by 10%. The Marketing Manager has apprehension that if the selling price is increased by 10% the quantity sold will fall by 20% You are invited by the company to analyse the situation and advise the company to take a decision with reasons
   • (i) The selling price should be increased or
   • (ii) The selling price should be reduced or The selling price should be left unchanged
7. Q4 (A) Rewrite the entire sentence selecting the most appropriate alternative with the given serial no.s without altering the order/sequence: [08 Marks]
8. Q1 Contribution is equals to
   • (a) Sales — Cost of sales
   • (b) Sales —Cost of production
9. Q2 If standard cost is lower than the actual cost, the difference is
   • (b) Adverse
   • (c) Positive
   • (d) Negative
10. Q3 A budget that gives a summary of all the functional budgets is known as
    • (a) Capital Budget
    • (b) Flexible Budget
    • (c) Master Budget
    • (d) Fixed Budget
11. Q4 The object of budgetary control is
    • (c) Forecasting
    • (d) None of the above
12. Q5 Difference between standard cost and actual cost is called as
    • (a) Profit
    • (b) Loss
    • (c) Wastage
    • (d) Variance
13. Q6 Operating Costing is applicable to
    • (a) Transport Companies
    • (b) Hospitals
    • (c) Electricity companies
    • (d) All of the above
14. Q7 A standard which is established for use unaltered for an indefinite period is
    • (a) Current standard
    • (b) Ideal standard
    • (c) Basic standard
    • (d) Expected standard
15. Q8 is the cost centre or cost unit in transport costing
    • (a) Passenger-kms
    • (c) Room —days
    • (d) None of the above
    • (B) Match the following by rewriting the columns A & B by matching on an overall most appropriate basis: [07 Marks] Volume(in units) is shown on the shown on the
16. Q4 Write Short Notes on any Three: 15 marks
17. Q1 Advantages of Break —Even Chart
18. Q2 Sales Variance
19. Q3 Master Budget
20. Q4 Operating Costing of Hotel
21. Q5 Merits of Zero Based Budgeting

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