ASSIGNMENT

Academic Session 2023-24

Subject Name & Code: MANAGEMENT ACCOUNTING (B.COM. 202)

Semester: IV

Faculty Name: MS. PAYAL TEOTIA

Unit Coverage: I , II, III, IV

UNIT I

NOTE: Attempt all questions. All questions are from CO1, CO2, CO5.

Course Outcome 1: Understand the nature and scope of Management Accounting.

Course Outcome 2: Analyze and interpret the accounting financial statements of company
and its limitations.
Course Outcome 5: Compute cash flow analysis and its likely impact on the company.
Compute cash flow analysis and its likely impact on the company.

Ques 1. Explain the objective and scope of management accounting.

Ques 2. Distinguish between Management accounting and financial accounting.

Ques 3. Classify the various profitability ratios. Also explain the meaning and method of calculation.

Ques 4. Anand Ltd., arrived at a net income of ₹ 5,00,000 for the year ended March 31, 2017.
Depreciation for the year was ₹ 2,00,000. There was a profit of ₹ 50,000 on assets sold which was
transferred to Statement of Profit and Loss account. Trade Receivables increased during the year ₹
40,000 and Trade Payables also increased by ₹ 60,000. Compute the cash flow from operating activities
by the indirect approach.
 UNIT II

NOTE: Attempt all questions. All questions are from CO3.

Course Outcome 3: Executing skills to prepare various Budgets.

Ques 1 Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the
overhead rates at 50% and 60% capacity.

Variable overheads: At 60% capacity (Rs)

Indirect Material 6,000
Labour 18,000
Semi‐variable overheads:
Electricity: (40% Fixed & 60% variable) 30,000
Repairs: (80% fixed & 20% Variable) 3,000
Fixed overheads:
Depreciation 16,500
Insurance 4,500
Salaries 15,000
Total overheads 93,000
Estimated direct labour hours 1,86,000

Ques 2. S. K. Brothers wish to approach the bankers for temporary overdraft facility for the period from
October 2022 to December 2022. During the period of this period of these three months, the firm
will be manufacturing mostly for stock. You are required to prepare a cash budget for the above
period.
Month Sales (Rs.) Purchases (Rs.) Wages (Rs.)

August 3,60,000 2,49,600 24,000

September 3,84,000 2,88,000 28,000

October 2,16,000 4,86,000 22,000

November 3,48,000 4,92,000 20,000

December 2,52,000 5,36,000 30,000

(a) 50% of credit sales are realized in the month following the sales and remaining 50% in the
second following.
(b) Creditors are paid in the month following the month of purchase
(c) Estimated cash as on 1‐10‐2022 is Rs.50,000.
Ques 3 Explain the benefits of budgetary control.

Ques 4. A manufacturing concern, which has adopted standard costing, furnished the
following information:
Standard Material for 70 kg finished product: 100 kg.
Price of materials: Re. 1 per kg.
Actual Output: 2,10,000 kg.
Material used: 2,80,000 kg.
Cost of material: Rs. 2,52,000.
Calculate:
(a) Material Usage Variance (b) Material Price Variance (c) Material Cost Variance

UNIT III

NOTE: Attempt all questions. All questions are from CO 4.

Course Outcome 4: Examining the impact of different ratios on the financial performance
of a company.
Ques 1. Differentiate between marginal costing and absorption costing.

Ques 2. Explain the concept of break-even analyses.

Ques 3. From the following information relating to quick standards Ltd., you are required to find out:
(i) PV ratio, (ii) break-even point, (iii) calculate the volume of sales to earn profit of 6,000/-
Total Fixed Costs - 4,500
Total Variable Cost - 7,500
Total Sales - 15,000

Ques 4. Explain the concept of margin of safety.

UNIT IV

NOTE: Attempt all questions. All questions are from CO 5.

Course Outcome 5: Compute cash flow analysis and its likely impact on the company.
Ques 1. A company produces 500 units at a variable cost of Rs.200 per unit. The price is Rs.250 per unit
and there are fixed expenses of Rs.12,000 per month. For this question, calculate Break-even point in
terms of both units and sales.

Ques 2. Explain the application of CVP analysis in decision making.

Ques 3. What is a limiting factor?

Ques 4. A T.V. Manufacturing company finds that while it costs Rs.6.25 To make each component X, the
same is available in the market at Rs.4.85 Each, with an assurance of continued supply. The breakdown of
cost is:
Should you make or buy?