M.B.A. III Semester Supplimentary Examinations, Apr/May 2008 COST AND MANAGEMENT ACCOUNTING ---Time: 3 hours Max Marks: 60 Answer any FIVE Questions All Questions carry equal marks
1. “Cost accounting is a system of foresight and not a post mortem examination, it turns losses into proﬁts, speeds up activities and eliminate wastes”. Comment. 2. Discuss brieﬂy various methods of secondary distribution of overheads with examples. 3. From a natural material four products are synthesized - three in a crude state and one as a by-product. The crude products are further reﬁned which costs Rs. 2.00, Rs. 1.6 and Re. 1.00 per kg of output respectively. The selling prices are ﬁxed at Rs.6.00, Rs. 4.50, Rs. 3.50 and Re. 0.50 per kg. respectively to a yield a proﬁt margin of 20 per cent on selling price. During a costing period the production of these four products is 8,000 units, 5,000 units and 6,000 units of the reﬁned products and 2,000 units of the by-product. Find the actual proﬁtability of each reﬁned product as a percentage on the selling price, if the joint costs total Rs. 50,800. 4. Discuss the importance of the following terms in relation to marginal costing (a) Key factor of production (b) P/V ratio (c) Break-even point (d) Margin of safety 5. What is contribution analysis ? Explain its signiﬁcance in cost volume proﬁt analysis. 6. Discuss the limitations of budgetary control system. 7. What is meant by variance analysis? Discuss about various types of variances. 8. What do you understand by Cost audit? Explain the scope of cost audit.
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