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[N.B. 111efigures in the right margin inflicatefull marks. Answer anyJive que.vtions. Different par{s, ofa question should
f
be answered in a same place. ,Us1: o calculator in the examination ha(/ is pem1is�·ib/eJ
Marks
I. (a) "Management Accounting is helpful in managerial decision making."-'-Discuss the 5
statement. Mention the tools of decision making.
(b) Differentiate between Management Accounting and Financial Accounting. 7
(c) '"Management Accounting is useful in Banking operation. "-Comment. 8
2. (a) Define the cost and explain the following types of cost : 8
(i) Sunk cost (ii) Opportunity cost (iii) 'Appraisal cost (iv) Period cost.
(b) The Bay Engineering Co. Ltd. manufactured and sold 1,000 scaring machines in 2019. 12
Following are the particulars obtained from the records of the company :
· ·· · Taka
Materials consumed 80,000
Wages paid 1,20,000
Manufacturing expenses 50,000
Salaries 60,000
Rent, Rates and Insurance 10,000
Selling expenses 30,000
General expenses - ·,• ·1 )t,, 1 ',. •.r II' · • �• . I ' ',"I�·' J 20,000
Sales / :.. I, . 4,00,000
The company plans to manufacture 1,200 scaring machines in 2020. You are required lo SIJP.mit
a statement showing the price at which ·these machines would be sotd so as to earn profit of \ 0%
on selling price.
The following additional information is provided to you :
(i) Price of materials will rise 20% in the previous year.
(ii) Wages rate will go up by 5%.
(iii) Manufacturing expenses will rise i_n proportion to the combined cost of materials and
wages. l
(iv) Selling expenses per unit will remain unchangec . _. ' '
1
1
(v) Other expenses per unit will remain unaffected by the rise.in output.
,-3. (a) Discuss .the assumptions of Gre��even. Analysis. 5
(bJ Income statement' of a company for the year 2018 is given balow : 15
·· Totnl Per unit Pcrccn tngc of s1\lcs ·
Sales (20,000) Tk. 12,00,000 Tk. 60 100%
Less variable expenses Tk. 9,00,000 Tk. 45
Contribution margin Tic 3,00,000 Tk. 15
Less fixed expenses · Tk. 2,40,000
Net operating income Tk. 60,000
Management wants to Improve the company's pront performuncc and hus usked lbr nn analysis
of a number of items.
llcquircd:
(i) Compute the company's CM ratio und variable expense rutio.
(ii) Compute the company's break-even points in both units uml sulcs Taku.
(iii) Assume that sales increase by Tk. 4,00,000 in next year. If ce'Jst · bch'uvlour pattern re1riain
� I I I I I '
unchanged by how much will the comp�my's net opcrnting income increase? Use CM
ratio. •
(iv) Refer to original data, assume that next year management wants to earn profit of
Tk. 60,000. How much units' will have to be sold.to earn target profit..
(v) Refer to original data, compute the company's margin of safety in both taka and
percentage form.
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4. The f�\\owing information is taken·from the records of two companies in the textile industry:
..
Sun Textile Co. Ltd.
.
Moon Textile Co. Ltd.
l •
2.20.000
• • '
3,40,000
Cash
3.20,000 6, 10,000
Sundry debtors
12.so·,000 9,30.000
Stock
·,. 16,75,000 24.20,000
Plant &·equipment
Total assets 34.65,000 43.00.000
Assets
December 31
2017
�» 2016
Taka Taka
Cash 80,800 '18,400
Accounts receivables --------.i.C_,,,,,_)_
-= 92,800 33,000
Inventory'
Q:-) 1,17,500 1,02,850
Prepaid expe�1scs ... --------- - 28,400 26,000
(: ,.)
Investment .- 1,43,000 1, 14,000
( '}
Equipment 2,70,000 2.42,500
Accumulated depreciation (50,000) { 52,000)
_....;: _
Total Tuka 6,82,500 5, 14,750
Liabilities and shareholders' ctt�ity
-----i::.�-,�
Accounts payablt -t I, 12,000 67,300
Accrued expenses payuble ... , 16,500 17.000
Bonds payable I, I 0,000 1, 50 ,0 00
Common stoc.____________�,20,000
Retained earnings
1,75,000 .
2,24,000 I ,05,45� \\
Total Taka
Additional information; :
during the year.
( 1) New equipment costing Tk. 85,000 was purchased for cash
Tk. l,�QO.
(2) Old equipment having an original cost ofTk. 57,500 sol� for cash
(3) Bonds matured and were paid o IT at face value for cash.
(4) A cash dividend ofTk. 40,350 was declared and paid during the year.
Required : Prepare a statement of cash-flows using the indirect method.
What do you mean by Capital Budgeting? State the factors which influence Capi_tal 5
(a)
Budgeting.
15
(b) Two projects have the following cash-flows :
t>criod Project-A Pro_jcct-B
0 I 0,000 I 0,000
5,000
2 5,000
3 5,000
4 -5,000 28.000
Required:
(i) Determine the IRR of each project.
(ii) Assuming a required rate of return of 10%, determine the NPV of each project.
(iii) Which project should be selected?
(a) "There are some danger of excessive working capital and jnadequate working capital" 6
Explain the statement.
{b) The Board of Directors of Rawnok Engineering Ltd. request you to prepare a stateme�t 14
showing the working capital requirements for a level of activity at 20 . 000 units of
production. The following informal ion is available for your calculation : �
Per unit cost
Taka
Raw materials
Direct labo�
Overheads 7S
Total cost 205
Profit 60
Selling price per unit 265
Additionaijo.formation :
..li.Ylfaw materials arc in stock on average one month-.
(ii) Materials are in process on average two weeks
(iii) _Fini shed goods arc in stock on average one monJ�
(iv) Credit allowed by suppliers arc one montl.i,,
(v) Time in lag in payment of wages l ·5 wcekV
(vi) Time to lag in payment from debtors 2 months
(vii) A vcrage time lag in payment of overheads I month./
20% of the output is sold in cash.
Cash in hand exp�o be Tk. 50,000
It is assumed that�ks is equivalent to a month.
8. (a) Disct�ss briefly_ th� importance of budgetary co�trol system
8ank111g Organization. with special reference to 12
{b) How . we ca n �chieve control of business operat ons o
cost mg tee hmques? i f a bank through budget and standard 8
'
'
the company which of the options will be beneficial for the company.
_____ J 1 ,A�v!se
� , •
4x5=20
10. Write short notes on any five of the followings:
_) r � (a) Master budget and rolling budget 1- Ii I 1
' '
' i,
.-
• I
. ,'(c) Aging accounts receivables
-.,(df" Operating leverage
..ft!)Zero-based budgeting ii • I • ,·. :
(/) Management report
rargin of safety
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