Spring / February 2012

Master of Business Administration- MBA Semester 1 MB0041 –Financial and Management Accounting - 4 Credits (Book ID:B1130) Assignment Set- 1 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.

Q1.

The Balanced Score Card is a framework for integrating measures derived from strategy. Take an Indian company which has adopted balance score card successfully and explain how it had derived benefits out of this framework.

The Balanced scorecard The Balanced Score Card is a framework for integrating measures derived from strategy. While retaining financial measures of past performance, the Balanced Score Card introduces the drivers of future financial performance. (Figure 1) The drivers (customer, internal business process, learning & growth perspectives) are derived from the organization’s strategy translated into objectives and measures.

The Balanced Score Card is more than a measurement system it can be used as an organizing framework for their management processes. The real power of the Balanced Score Card is when it is transformed from a measurement system to a management system. It fills the void that exists in most management systems – the lack of a systematic process to implement and obtain feedback about strategy The Balanced scorecard The Balanced Score Card is a framework for integrating measures derived from strategy. While retaining financial measures of past performance, the Balanced Score Card introduces the drivers of future financial performance. (Figure 1) The drivers (customer, internal business process, learning & growth perspectives) are derived from the organization’s strategy translated into objectives and measures. The Balanced Score Card is more than a measurement system it can be used as an organizing framework for their management processes. The real power of the Balanced Score Card is when it is transformed from a measurement system to a management system. It fills the void that exists in most management systems – the lack of a systematic process to implement and obtain feedback about strategy

Q2. Q3.

What is DuPont analysis? Explain all the ratios involved in this analysis. Your answer should be supported with the chart. Accounting Principles are the rules based on which accounting takes place and these rules are universally accepted. Explain the principles of materiality and principles of full disclosure. Explain why these two principles are contradicting each other. Your answer should be substantiated with relevant examples.

Q4.

Explain any two types of errors that are disclosed by trial balance with examples and rectification entry. Note - Avoid giving examples given in the self- learning material. Distinguish between financial accounting and management accounting

Q5.

000 20.000 36. XYZ Ltd provides the following information January 1 Sundry Debtors Cash in hand Cash at Bank Bills Receivable Inventory Bills Payables Outstanding expenses Sundry Creditors Bank Overdraft Short term Loans 65.000 30.000 8.000 20.000 15.000 12.05.000 13.000 84.000 December 31 1.000 5.000 .000 30.000 32.Spring / February 2012 Q6.000 30.000 16.000 6.000 42.000 58.000 90.

1 (60 Marks) Note: Each Question carries 10 marks. .MBA Semester 1 Master of Jan 1 89000 and Dec31st 110000 st Spring / February 2012 MB0041 –Financial and Management Accounting .Prepare a schedule of changes in working capital Hint: Net Working capital: Business Administration. Answer all the questions.4 Credits (Book ID:B1130) Assignment Set.

000 3.000 4. 2006 Stock Debtors Bills Receivable Creditors Bills Payable Outstanding expenses 30.000 Depreciation Loss on sale of plant Goodwill written off Income tax Net Profit 6.000 Office expenses Selling expenses 12.000 8.000 6. Answer all the questions.000 10.50.000 5.000 5.000 12.MBA Semester 1 MB0041 –Financial and Management Accounting . Prepare a cost statement.00.000 7. Q1.4 Credits (Book ID:B1130) Assignment Set.000 15.2 (60 Marks) Note: Each Question carries 10 marks.00.50.00. The following extract refers to a commodity for the half year ending 31 March 2008.000 Balance Sheet as on ……….10.000 Profit on sale of land Interest on investment 5.Spring / February 2012 Master of Business Administration. st .000 8.000 30.000 12.000 8.000 4.000 5.000 MARCH 31 2007 28. Illustration 1: Compute the cash flow from operating activities Profit and Loss Account To Cost of goods sold 4.000 Hint: Net cash from operating activities= 76000 Q2.000 5.000 1.000 20.000 By Sales including cash sales 1.

Describe the essential features of budgetary control. 240 3. Goods (2.800 27.000 1.000 tons.000 (1. Briefly describe labor mix variance and yield variance.000) Total Rs.800 3. rate.000 12. insurance and Works expenses Work in progress: opening closing Carriage inwards Cost of factory 1.000 14.000 Dolls Rs.Purchase of raw materials Rent.000 1.000 in the manufacturing of dolls.70.000 4. 80. 1. 00.000. Production during the year is 16. Prepare a cost sheet.000 22. The following statement of cost has been prepared. Advise the management. As there is a loss of Rs.1 per ton sold.000 17.000 24.000 Direct wages Opening stock Raw materials Finished goods (1000 units) Closing stock: 1. Avon garments Ltd manufactures readymade garments and uses its cut-pieces of cloth to manufacture dolls.000 1.000 1. 00.000 Spring / February 2012 20. Hint : Total cost=Readymade garments 134000. Doll= 13000 and total=147000 Q4.000 16.000 40. 6. Particulars Direct material Direct labour Variable overheads Fixed overheads Total cost Sales Profit (loss) Readymade garments Rs. 440 8. 000 1.200 19. 800 16.200 2.000 13.82. it is suggested to discontinue their manufacture. Q6.34. 20.000 13.000 1.47. raw material F.000 36. 86.000 The cut-pieces used in dolls have a scrap value of Rs 1.000 if sold in the market. Hint: Total cost or cost of sales= 255000 Profit= 45000 Sales= 300000 Q3.000 tons) Sale of finished goods Advertising.000 35. How is standard costing related to budgetary control? . discounts allowed and selling costs Re. Q5.

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