MANAGEMENT ACCOUNTING BBA- 304
IMPORTANT QUESTIONS
Que 1: Write short notes on any four
(a) Zero Base Budgeting (b)Cash budget (c)Material variances
(d) Break Even Point (e) Variable cost and Fixed cost (f) MOS and P/V ratio
Que 2: What are the important areas of management decision opened up by the application
of the marginal costing? Explain make or buy and operate and shut down decision?
Que 3:A company manufactures 3 different products, following is the information
Products S T Y
Sales mix 35% 35% 30%
Selling Price 30 per unit 40 20
Variable cost 15 Per unit 20 12
Total fixed cost
Total sales
180,000
600,000
The company is proposed to discontinue Y and replace it with A , following will be the result
Products S T Y
Sales mix 50% 25% 25%
Selling Price 30 per unit 40 30
Variable cost 15 Per unit 20 15
Total fixed cost
Total sales
180,000
640,000
Suggest the management to discontinue or not?
Que 4: What is the difference between decision under marginal costing and differential costing?

Que 5: : Calculate all type of material variances from following information?
Standard Quantity Standard Price Actual
Quantity
Actual Price
Mat A 40% 200 per ton 90 tons 180 per ton
Mat B 60% 300 per ton 110 tons 340 per ton
St loss 10% Actual
production 182
tons
Que 6: From the following information calculate (i) BEP ( ii) no of unit sold to earn
profit10% of sales
selling price 20 rs per unit , variable cost 12 rs per unit , fixed cost 540,000
Que 7: Discuss the nature and scope of management accounting and distinguish it from
Financial accounting/
Que8: Explain fully the technique of preparing Cash Flow statement. what are the uses of
this statement
Que 9: Following is the information, Prepare cash Flow Statement accordance to AS3 ;
Particulars Amt Particulars Amt
To Balance b/d 10,000 By Payment to suppliers 400,000
To receipt from customer 500,000 By Purchase of machine 150,000
To sale of Building 190,000 By purchase of furniture 50,000
To issue of shares 200,000 By wages and salaries 30,000
To issue of Pre shares 100,000 By rent and taxes 20,000
By income tax 25,000
By redemption of debenture 275,000
By dividend 30,000

By Balance c/d 20,000
Total 10,00,000 Total 10,00,000
Que 10 X Ltd is manufacturing a part for one of its major products at the cost of rs 22 .
The cost analysis is as under
Material 6 rs per unit , Labor 8 rs per unit , variable overhead 5 rs per unit , Fixed
overhead 3 rs per unit. Total requirement is 25000 units annually. An outsider is supplying
this part to supply at 20 rs per unit with no change in quality. Should the company go for
buying in place of making the part
Que 11; The following budget has been prepared at 70% level for home market . The
possibilities in foreign market are explored
Units 42000 , material 210,000 , wages 126,000 , overhead Fixed 70,000, overhead variable
21000, . The selling price in India is 15 per unit . In far east about 6000 units may be sold
only at 10 rs per unit and in addition 25 paise per unit will be the expense of freight . Do
you advice to explore new market
Que 12; Explain different types of cost (i) Sunk cost (ii) imputed cost (iii) opportunity cost
(iv) relevant and irrelevant cost (v) out of pocket cost