Management Accounting Question Paper 2021 (CBCS Pattern
(Held in January/February, 2022)
Paper: DSE-501 (Group-I)
(Accounting and Finance)
Full Marks: 80
Pass Marks: 32
Time: 3 hours.
The figures in the margin indicate full marks for the questions
1. (a) Write True or False: 1×4=4
(1) Management accounting is concerned with accounting information that is useful to the management.
(2) Cash flow statement is useful for short-term financial analysis.
(3) Managerial Cost = Total Cost – Variable Cost.
(4) Budgetary control is a system of controlling cost.
(b) Fill in the blanks: 1×4=4
(1) _______ decisions limit the usefulness of management accounting.
(2) Income tax refund is an _______ of cash.
(3) Fixed cost per unit _______ when volume of production increases.
(4) Flexible budget is a _______ budget.
2. Write short notes on any four of the following: 4×4=16
(a) Limitations of management accounting.
(b) Funds from operation.
(c) Profit-volume ratio.
(d) Differential cost.
(e) Zero-based budgeting.
3. (a) “Management accounting is nothing more than the use of financial information for management purposes.” Explain this statement and clearly distinguish between Financial Accounting and Management Accounting. 6+8=14
Or
(b) Discuss, in detail, the functions of management accounting. 14
4. (a) From the following Balance Sheets of X Ltd. Co. for the years 2019-20 and 2020-21, make out –
(1) schedule of changes in the working capital;
(2) statement of sources and application of fund: 7+7=14
| Capital and Liabilities | 31-03-2020 Rs. | 31-03-2021 Rs. |
| Equity Share Capital 8% Redeemable Preference Share Capital Reserve General Reserve Profit and Loss A/c Proposed Dividends Sundry Creditors Bills Payable Expenses Due Provision for Taxation | 3,00,000 1,50,000 – 40,000 30,000 42,000 25,000 20,000 30,000 40,000 | 4,00,000 1,00,000 20,000 50,000 48,000 50,000 47,000 16,000 36,000 50,000 |
| 6,77,000 | 8,17,000 | |
| Assets | 31-03-2020 Rs. | 31-03-2021 Rs. |
| Goodwill Plant Land Investment Sundry Debtors Stock-in-Trade Bills Receivable Cash in Hand Cash at Bank Preliminary Expenses | 1,00,000 80,000 2,00,000 20,000 1,40,000 77,000 20,000 15,000 10,000 15,000 | 80,000 2,00,000 1,70,000 30,000 1,70,000 1,09,000 30,000 10,000 8,000 10,000 |
| 6,77,000 | 8,17,000 |
Additional Information:
(1) A machine has been sold for Rs. 10,000. The written-down value of the machine was Rs. 12,000. Depreciation of Rs. 10,000 is charged on plant in 2020-21.
(2) A piece of land has been sold out in 2020-21 and profit on sale has been credited to capital reserve.
(3) The investment in trade investment Rs. 3,000 is received by way of dividends including Rs. 1,000 from pre-acquisition which have been credited to Investment A/c.
(4) An interim dividend of Rs. 20,000 has been paid in 2020-21.
Or
(b) What is cash flow statement? How is it prepared? Distinguish between a Cash Flow Statement and a Cashbook. 3+7+4=14
5. (a) From the following data, calculate –
(1) profit-volume ratio;
(2) fixed cost;
(3) sales at break-even point;
(4) sales required to earn a profit of Rs. 20,000: 3+3+4+4=14
| Sales (Rs. ) | Profit (Rs. ) | |
| Period – I Period – II | 1,00,000 1,20,000 | 15,000 23,000 |
Or
(b) What do you mean by marginal costing? Discuss its usefulness and limitations. 2+7+5=14
6. (a) A manufacturing company manufactures two Products X and Y. An estimate of the number of units expected to be sold in the first seven months of 2020 is given below:
| Months | Product – X (Units) | Product – Y (Units) |
| January February March April May June July | 500 600 800 1,000 1,200 1,200 1,000 | 1,400 1,400 1,200 1,000 800 800 900 |
It is anticipated that –
(1) There will be no work-in-progress at the end of month.
(2) Finished units equal to half of the anticipated sales for the next month will be in stock at the end of each month (including December 2019).
The budgeted production and production cost for the year ending 31st December, 2020 are as follows:
| Product – X | Product – Y | |
| Production Direct Material Direct Wages Other Manufacturing Expenses (apportion able to each type of product) | 11,000 units Rs. 12 per unit Rs. 5 per unit Rs. 33,000 | 12,000 units Rs. 19 per unit Rs. 7 per unit Rs. 48,000 |
You are required to prepare –
(1) a product budget showing number of unit to be manufactured each month;
(2) a summarized production cost budget for six months period from January to June 2020. 8+6=14
Or
(b) Define the term ‘budget’ and ‘budgetary control’. Explain in detail the classification of budgets according to –
(1) time;
(2) functions;
(3) flexibility. 2½+2½+9=14
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