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22643 Roll No.

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No. of Pages
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Total No. of Questions : 15

MBA / MBA(IB) (2014 to 2017) (Sem.–1)
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ACCOUNTING FOR MANAGEMENT
Subject Code : MBA-103
Paper ID : [C0103]
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Time : 3 Hrs. Max. Marks : 60

INSTRUCTION TO CANDIDATES :
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1. SECTION-A contains22643 22643
SIX questions 22643
carrying FIVE 22643
marks each 22643
and students has 22643

to attempt any FOUR questions.

2. SECTIONS-B consists of FOUR Subsections : Units-I, II, III & IV. Each
Subsection contains T WO questions each carrying EIGHT marks each and
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student22643 22643
has to attempt 22643
any ONE question from22643 22643
each Subsection. 22643 22643

3. SECTION-C is COMPULSORY and carries EIGHT marks.

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SECTION-A

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Q1 What is the need of accounting?
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22643 What are22643
the limitations22643
of financial accounting?
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Q3
p e
How fund flow statement differ from cash flow statement?
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pa o
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22643 Q4
22643 Discuss in detail benefits
22643 of break even
22643 analysis.
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Q5 Define transfer pricing.

22643 Q6
22643 What do22643
you mean by tally
22643 software package?
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p e
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p a
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SECTION-B
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UNIT-I br 22643 22643 22643 22643

Q7 Why accounting is considered as information system? Discuss in detail relevance of

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concepts and conventions for preparation of financial statement and its evolution.

Q8 Discuss in detail with the help of example how to prepare final account for insurance and
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banking 22643
companies 22643 22643 22643 22643 22643 22643

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UNIT-II
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Q9 Discuss in detail concept, nature and limitation of financial statement. What are latest
techniques of financial statement analysis?

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Q10 a) From 22643
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the following22643
information 22643
prepare proprietors’
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fund and
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balance sheet
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with 22643
maximum details possible:
Current Ratio 4.5
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Liquid Ratio
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2 22643 22643 22643
Proprietary ratio 1.5
Working Capital Rs. 20000
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Reserve
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and Surplus
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Rs. 10000
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Bank overdraft Rs. 5000
b) The following is the position of Current Assets and Current Liabilities of M Ltd.
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2006 2007
Particulars
Rs. Rs.
Provision for Bad Debts 1,000 3,000
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Creditors
Loan
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o m 10,000
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15,000
19,000
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10,000
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Bills Receivable 20,000 40,000
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The company incurred 22643 22643
a loss of Rs. 45,000 22643
during the 22643
year. Calculate 22643
the Net Cash Flows 22643

p e
from the Operating Activities by Indirect Method.
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pa
UNIT–III
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Q11. Anupam International LTD produces three products A, B, C each requiring more than one

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labour operation. Labour requirement per unit of output is given below :

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Operation
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A
10
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p
B
e
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C
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a
1 20 5
2
3
5
15
r p -
10
10
5
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b 22643 22643 22643

The factory works for 8 hours per day for 26 days in a month. In a month 8 hours are lost
due to various reasons. The budgeted hourly rates for the workers in operations 1,2 and 3
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are Rs.4, Rs.5 and Rs.6 respectively.

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The budgeted production during the Month for the three products is as follows :
PRODUCT A 4000 units
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22643 B 22643 22643 22643 6000
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PRODUCT C 8000 units
Prepare a labour budget for the month showing for each operation, (i) direct labour hour
(ii) direct labour cost and (iii) the number of workers.
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Q12 The following data is obtained from the books of manufacturing concern :
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Men Women
Number in the standard gang 24 14
22643 22643 Standard rate
22643 22643per hour 22643 Rs. 8
22643 Rs.22643
7 22643 22643

Number in the actual gang 18 16

Actual rate per hour Rs. 9 Rs.6
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During a week, 2 hour were lost due to power failure and work was actually done for 40
hours Calculate labour mix variance and idle time variance.

22643 22643 22643 22643 UNIT-IV

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Q13 ABC Company produces two types of stereo units, Activity data as follows :

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Product22643
Costing Data22643 22643 22643 22643
Activity Usage Measure Deluxe Regular Total
Units produced per year 5,000 50,000 55,000
Prime cost (Rs.) 39,000 3,69,000 4,08,000
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Direct labour 22643
Machine hours
hours 22643 5,000
10,000
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o m 22643
45,000
90,000
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1,00,000
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Production runs 10 5 15
22643 Number of moves
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Activity
p e
Activity cost data (overhead activities)
Activity cost (Rs)
m
Setting up equipment

pa
60,000
o
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Material handling 30,000

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Using power 50,000

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Testing
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40,000
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p e
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Total 1,80,000

p a
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Required :
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a) Calculate the consumption ratios for each activity.
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b) Group activities based on the consumption ratios and activity level.

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c) Calculate a rate for each pooled group of activities.

d) Using the pool rates, calculate unit product costs.

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Q14 Write down the following :
a) Human resource accounting.
22643 22643 b) Tally 22643
software package
22643in accounting.
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SECTION-C
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Q15 A company has two divisions, A and B. Division, A manufactures a component which is
used by division B to produce a finished product. For the next period, output and costs
have been budgeted
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Division A Division B
Component units 50,000 -
22643 Finished units
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Total variable costs Rs 2,50,000 Rs 600000

Fixed costs Rs 1,50,000 Rs 2,00,000
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The fixed costs are separable for each division. You are required to advise on the transfer price
to be fixed for Division A’s component under the following circumstances.

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A can sell the22643
component in22643
a competitive 22643
market for Rs.22643
10 per unit. Division
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can also purchase the component from the open market at that price.

2. As per the situation described in (i) 22643

above, and further assume that Division B22643
currently
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m 22643 22643
buys the component from an external supplier at the market price of Rs. 10 and there is
o
reciprocal agreement between the external supplier and another Division C, within the
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group. Under this agreement the external supplier agrees to buy one product unit from
Division22643 Rs. 4 per unit22643
to that division, for every component
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B buys from the supplier.

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pa o
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br 22643 22643

p e
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p a
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