Management Accounting — DU B.A. (V.S.) Small And Medium Enterprise Previous Year Question Papers

In case of any discrepancy in the language, questions printed in English language will prevail. What is Management Accounting ? How does Management Accounting differ from Financial Accounting ? Discuss in brief the nature and scope of Management Accounting. 2. "Cost reduction through various techniques of management accounting and other areas of discipline is an effort to reduce waste and improve overall performance and profit without compromising the product quality and its use." , (a) What do you understand by Budgetary Control System ? Describe its advantages, and limitations in modern business organizations. (6) Discuss the process of budget preparation. Explain the role of different functional budgets in achieving overall organizational goals. A factory engaged in manufacturing plastic toys is operating at 30% capacity and produces 7,500 toys per month. The present break up for one toy is as under: Direct labour Overhead * 15 (60% fixed) The selling price per toy is 7 60. If it is decided to work the factory at 50% capacity, the selling price falls by 3%. At 90% capacity, the selling price falls by 5% accompanied by a similar fall in the price of material. You are required to prepare a statement showing budgeted cost and profit at 50% and 90% capacities. PK Chemical Industries Limited provides the following information from their records. For producing 5 units of Product 'R', the standard material requirement is : Material Quantity (kgs.) Rate per Eg. (8) 1,000 units of Product R' were produced during January 2026. The actual consumption of material is as under : Material Quantity (kg.) Rate per Kg. (F) You are required to calculate the following : (i) Material Cost Variance (i) Material Price Variance (iii) Material, Usage. Variance (io) Material Mix Variance • (v) Material Yield Variance. (i) → {0 (Material Cost Variance) (ii) # { {da (Matérial Price Variance) . .. # 34 02 (Material Usage Variance) (v) # 4 { (Material Mix Variance) 0) # 34 {97 (Material Yield Variance) I 6. The following information provided by R Ltd.: Selling Price Per Unit 25 Variable Cost Per Unit 15 Fixed Cost 1,20,000 You are required to compute the following : (i) Break-even Point in units and rupees (iii) Number of units to be sold to earn a net profit of 7 32,000 (iv) Margin of Safety (u) New BEP (units) if the selling price is reduced by 20%. FOR MIT 1,20,000 (io) I HIff (Margin of Safety) 7. Y Ltd. has an annual production of 90,000 units of a comporient. The per unit cost structure of the component is as under : Labour (25% fixed) •$ 360 Variable expenses $ 180 Fixed expenses $ 270 The purchase manager has an offer from a supplier who is willing to supply the component @ F 1,080 per unit. Should the component. be purchased and production stopped ? Give justification for your answer. Will your answer change if the supplier's price is $ 970. Also discuss some non-monetary factors to be taken into consideration before making a final decision. the Morn 081=