Management Accounting — DU B.Com (P) Previous Year Question Papers

Discuss the relationship between Management Accounting and Cost (b) Write notes on the following with reference to Responsibility Accounting: (i) Cost Centre (ii) Revenue Centre (c) Explain the distinction between 'cost control' and 'cost reduction'. Enumerate some of the important tools/techniques of 'cost reduction' and 'cost control'. (9) (d) What are the different financial and non-financial performance measures available in Responsibility Accounting? Explain. (9) Ankriti Ltd manufacture Product X and Product Y during the year ending on 31"' March 2024 It is expected to sell 7500kg of Product X and 37,500 kg of Product Y @ Rs.60 and Rs. 32 per kg respectively. The direct materials, A, B and C are mixed in the proportion of 4:4:2 in the manufacture of Product X and in the proportion of 3:5:2 in the manufacture of Product Y. The actual and budgeted inventories for the year are as follows : Particulars Opening Expected Closing Anticipated Cost per kg (Rs) Prepare the Production Budget and Material Budget showing the Purchase cost of materials for the year ending on 31"'March,2024. (18) (a) A factory is currently running at 50%o capacity and produces 5,000 units at a cost of Rs. 90 per unit as per details given below : Factory Overheads Administrative Overheads The current selling price is Rs. 100 per unit. At 60% working , per unit increases by 2%o and selling price per unit falls by 2o/o mate al cost At 80% working, material cost per unit increase by 5oh and selling price per unit falls by 2.5%. Prepare a flexible budget showing profit of the factory at 60%o and 80%o working and offer your comments. (b) "Flexible Budgets are more realistic and useful than a fixed budget" Do you agree? (3) A group of l0 skilled and 20 unskilled workers are expected to produce 400 kg of chemical BXT in 8 hours a day. The Standard hourly wage rate was fixed at Rs. 25 for a skilled worker and Rs. l5 for an unskilled worker. Actually a group of 15 skilled and 10 unskilled workers were deployed and paid for 8 hours a day at an hourly rate of Rs. 22 and Rs. 18 respectively. 2 hours were wasted for the entire group due to power failure and only 300 kg of Chemical BXT was produced. Required to Compute : (i) Labour Cost Variance (ii) Labour Rate Variance (iii) Idle Time Variance (iv) Labour Efficiency Variance (v) Labour Mix Variance (vi) Labour Yield Variance ( l8) (a) A factory produces two products P and Q. P takes l0 hours to produce and Q require 16 hours as per the budget. Budgeted production for the month is 600 units of P and 250 units of Q. A month has 25 budgets days of 8 hours each. During the month, 500 units of P and 400 units of Q were produced. The factory employs 50 workers. They actually worked for 9 hours daily for 24 days. Calculated (i) Efficiency ratio; (ii) Activity ratio; (iii) Capacity ratio (9) (b) A Manufacturing concern which has adopted standard costing furnishes the following information : Material for 7Okg finished products Price of material