2012 — F23 - BBA-S - 23 ‘Ai SIXTH SEMESTER B.B.A. (CBCS) DEGREE EXAMINATION, AUGUST/SEPTEMBER 2023 ADVANCED COST AND MANAGEMENT ACCOUNTING Time : 3 Hours) [Max. Marks : 80 Instruction : Show necessary calculations use of simple calculator is allowed. SECTION — A (10x2=20) Answer any ten questions. Each question carries two marks. 1. a) Mention any two tools of management accounting b) What is fund flow analysis 2 c) What are quick liabilities ? Give examples. d) What do you mean by trend analysis ? e) What is material variance ? f) Mention any two objectives of budgetary control g) What is marginal costing ? h) What is margin of safety ? i) Calculate contribution if fixed cost is ¥ 5,25,000 and EBIT is ¥ 2,75,000. j) Write any two uses of cash flow analysis k) Give the formula for EPS. |) Sate any two examples for fixed interest bearing securities. SECTION -B (5x5=25) Answer any five questions. Each question carries five marks. 2. Differentiate between Cost Accounting and Management Accounting. 3. Briefly explain the objectives of ratio analysis. 4, Explain the applications of marginal costing. [P.7.0.2012 -F23 - BBA~S - 23 2 5. Recommend a sales mix from : 1, 300 units of product A and 700 units of product B i . 500 units of product A and 500 units of product B 2 700 units of product A and 300 units of product B , fixed cost is = 4,500 contribution of product A is % 6 p.u. and contribution of product B is % 8 p.u. 6. Prepare a common size income statement for the following. Particulars A. Co. Ltd. (@) B. Co. Ltd. (2) Sales 60,000 75,000 Less : Cost of goods sold 22,000, 29,000 Gross profit 38,000. 46,000 Less : Administration and selling overheads 12,000 12,000 Operating profit 26,000 34,000 Less : Interest 8,000 11,000 EBT 18,000 23,000 Less : Tax 6,300 8,050 EAT 11,700 14,950 N Calculate material price variance and material usage variance, Standard quantity — 14,400 kgs Actual quantity — 16,000 kgs Standard price - %12perkg Actual price — %13 per kga s 2012~F23- BBA-S~23 8. Calculate a) BEP b) Sales required to earn a profit of 72,000 Sales ~ %3,10,000 Variable cost — = 1,24,000 Fixed cost — 7 1,40,000 9. Prepare a schedule of changes in working capital from the following details. Balance Sheet Equities and liabilities 2021 2022 Assets 2021 2022 ® ® ® @ Equity share capital 1,00,000 1,20,000 Land and Building — 1,20,000 1,35,000 Reserves and surplus 85,000 78,000 Machinery 1,01,000 72,000 Debentures 73,000 68,000 Long term investments 30,000 Creditors 27.000 23000 Debtors 43.000 a Bills payable 18,000 21,000 Bills receivable 32,000 29,000 Outstanding expenses 9,000 _ 6,000 Inventory 4,000 6,000 Cash and equivalents 12,000 7,000 3,12,000 3,16,000 3,12,0003,16,000 SECTION -C (2x10=20) Answer any two questions. Each question carries ten marks. 10. Differentiate between Financial Accounting and Management Accounting. 11. Calculate a) Current ratio b) Acid test ratio c) Debt equity ratio 9) Gross profit ratio ©) Net profit ratio.Tze 2012-F23 - BBA-S- 23 Balance Sheet as on 31-3-2023 Liabilities @) Assets Equity share capital 2,50,000 Plant and machinery Preference share capital 1,75,000 Furniture Reserves and surplus 80,000 Inventory 1,00,000 Debentures 1,20,000 Bills receivables 20,000 Creditors 45,000 Debtors 52,000. Bills payable 12,000 Prepaid expenses 4,000 Bank overdraft 10,000 Cash and equivalents 38,000 6,92,000 6,92,000 Additional Information : * Sales revenue : % 4,35,000 * Cost of goods sold : % 2,82,000 = Administration and selling expenses : 2 75,000 Prepare a cash budget for 3 months from April — June. ere Month Sales Purchases Wages Expenses ® ®) ®) ®) March 5,50,000 3,13,000 54,000 23,000 April 6,23,000 3,72,000 60,000 25,000 May 7,18,000 4,27,000 71,000 26,000 June 8,25,000 4,93,000 80,000 28,000 Additional Information : * Cash balance as on 1* April is € 1,45,000 % 60% of the sales are on cash basis and the remaining amount is collected in the next month. * Credit period allowed by the suppliers is one month. * Delay in payment of wages is one month.Share capital 2,80,000 2,96,000 Land 1,20,000 — 1,40,000 Debentures 48,000 24,000 Stock 1,986,800 —1,70,800 Creditors 44,240 50,560 Debtors 59,600 70,800 — P&LAC 40,160 42,240 Cash ; - 4,12,400 4,12,800 = Land purchased during 2021 % 20,000 * Debeniure paid-off % 24,000