ST.

XAVIER’S COLLEGE (AUTONOMOUS), KOLKATA

Department of Commerce (Morning and Evening)

Semester IV Mid-Semester CIA Examinations, April 2021

Subject: Management Accounting Date: 07-04-2021

Subject Code: BCHCR410 Time: 8a.m – 9:30 a.m

Full Marks: 40 Duration: 1hr 30 min

PLEASE READ THESE INSTRUCTIONS BEFORE YOU START WRITING:

 Only hand written answer scripts (using black or blue ink) on A4 size
sheets will be considered.
 On top of each page of your answer script the following information
should be entered by the student:
Name, Roll Number, Subject, Date, and Page Number.
 Answer in your own words as far as practicable.
 Of the questions attempted, the answers to only the first required number
of questions (as stipulated in the question paper) will be evaluated. Please
do not attempt extra questions.
 Students will be writing legibly their answers, scanning them and sending
the entire answer script as one PDF file using MS Teams, ONLY.
 Save the scanned pages to a single PDF file and name the document
accurately as explained.
Room No._Roll No._Paper Code.PDF
(example: RoomNo.42_RollNo.147_BCHCR610)
 Kindly check the contents of the saved answer script file with all the details,
before uploading the it (since no multiple submissions would be allowed).
 The scanned answer scripts should have enough clarity to enable
evaluation.
 St. Xavier’s College (Autonomous), Kolkata
Department of Commerce
Semester IV Continuous Internal Assessment 07.04.2021

Subject: Management Accounting

Full Marks: 40 (BCHCR410) Duration:1hr 30 min

GROUP-A
Answer any five questions [5 X 4 = 20 marks]
1. Why limiting factor is called principal budget factor?
2. ‘Flexible budgets are more useful than Fixed budget’- Explain
3. A company manufactures a single product with a variable cost per unit of ₹110. The P/V ratio is
45%. Total fixed costs are ₹9,90,000. what is the break-even point?
4. Specify cost and non-cost factors to be considered in make or buy decisions.
5. For 200 units the details of the expenditure are as follows: Material = ₹ 30,000; Labour = ₹ 20,000;
Factory Overhead = ₹ 4,000; Administration Overhead = ₹ 5450; Selling and Distribution
Overhead = ₹ 1500. The products are sold at a price of ₹ 400/unit

PARTICULARS FIXED (%) VARIABLE (%)

Material - 100
Labour 50 50
Factory Overhead 75 25
Administration Overhead 100 -
Selling and Distribution Overhead 40 60
Find:
i) TVC + TFC ii) Contribution iii) PV ratio iv) BEP (units and value)

6. Choose the right option in the following questions:

I. A budgeting process which demands each manager to justify his entire budget in detail
from the beginning is _______?
a. Functional budget
b. Master budget
c. Zero base budgeting
d. None of the above
II. _______ provides an estimate of the capital amount that may be required for buying
fixed assets needed for meeting production requirements.
a. Production budget
b. Cash budget
c. Capital expenditure budget
d. None of the above
 :Page 2:

III. _______also known as subsidiary budgets.

a. Master budget
b. Functional budget
c. Cost budget
d. None of the above

IV. Which of the following statements are not true about budget, budgeting & budgetary
control?
a. Budgetary control works on the basis of best option
b. Budget is one of the important mediums of communication
c. Budgeting develops the quality of objectivity in planning
d. None of the above
7. Micro Corporation has budgeted sales of its microchips for next four month as follows:
Units Sold: April = 20,000 units; May = 25,000 units; June = 35,000 units; July = 40,000 units.
The company is preparing a production budget for the third quarter. Ending inventory level
must equal 20% of the next month’s sales
a) Calculate the ending inventory as of March 31st.
b) Prepare a production budget for the third quarter by month and in total.
8. Critically analyze the Break-Even Analysis. Substantiate it with a suitable diagram.

GROUP-B
Answer any two questions [2 X 10 = 20 marks]
9. A) A company is engaged in manufacturing of two products A and B. Product A uses one unit of P
and two units of Q. Product B uses two units of P and one unit of Q and two units of R. component R
which is assembled in the factory uses one unit of Q.
Components P & Q are purchased from the market. The company has forecasted the sales and inventory
of the next year:
Product A Product B
Sales (in units) 80000 150000
At the end of the year 10000 20000
At the beginning of the year 30000 50000
The production of both the products and the assembling of the component R will be spread out
uniformly throughout the year.
Required:
A) budget of production and requirements of components during next year.
B) A company earned a profit of ₹30,000 during 2020-21. If, the marginal cost & selling price of a
product is ₹8 and ₹10 respectively, find out the amount of margin of safety?
[(3+3)+4]
10. A) Sales ₹9,00,000, Margin of safety 40%, P/V ratio 2/3
Calculate: i) break even sales ii) fixed cost and iii) sales to earn a profit of ₹3,00,000.
 :Page 3:

B) Write a short note on Zero Base Budgeting [(2+2+3)+3]

11. The following particulars are extracted from the records of a company:
PER UNIT
PARTICULARS PRODUCT A PRODUCT B
Sales (₹) 100 120
Consumption of material 2 kg 3 kg
Material Cost (₹) 10 15
Direct Wages Cost (₹) 15 10
Direct Expenses (₹) 5 6
Machine Hours used 3 hours 2 hours
Fixed Overhead Expenses (₹) 5 10
Variable Overhead Expenses (₹) 15 20
(a) Comment on profitability of each product (both use the same raw material) when:
1) Total sales potential in units is limited;
2) Total sales potential in value is limited;
3) Raw material is in short supply;
4) Production capacity (in terms of machine hours) is the limiting factor.
(b) Assuming raw material as the key factor, availability of which is 10,000 Kgs. and each product
cannot be sold more than 3,500 units find out the product mix which will yield the maximum profit.
12. Write Short notes on the following: [5+5]
a. Marginal Costing Vs Absorption Costing
b. Requisites of an effective Budgeting System
---------