BBA 402 - MANAGEMENT ACCOUNTING

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

help.mbaassignments@gmail.com

or

call us at : 08263069601

ASSIGNMENT

DRIVE	FALL 2016
PROGRAM	BBA/ SEMESTER II
SUBJECT CODE & NAME	BBA 402 - MANAGEMENT ACCOUNTING
BK ID	B1713
CREDITS	4
MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Question. 1. Differentiate between :

a) Standard Costing and Budgetary Control

Answer:Although budgetary control and standard costing both are based on some common principles; both are pre-determined, comparison will be made with the actual costs and both system need a revision of the standards or the budget, these two systems have certain differences which are as follows:

1. Budgetary control deals with the operation

b) Estimated Cost, Historical Cost and Standard Cost

Answer:Estimates are the expressions of of opinion based upon past experiences whereas the standard costs are based upon standard rate that are very carefully developed and set as scientifically as possible. However, both estimated costs and standard costs are related to future period of time but there are some significant

Question. 2. Explain the method to prepare a Fund Flow Statement.

Give an example of Fund Flow Statement.

Answer:STEPS IN PREPARATION OF FUND FLOW STATEMENT 

        I.            Preparation of fund flow statement

      II.            Preparation of statement of changes in working capital.

    III.            Preparation of adjusted profits and loss account (to find out fund from operation or fund lost in operation)

Question. 3. It is estimated that for producing one unit of product X, 10 lbs. of materials are consumed.

The standard price per lb of materials is Re. 0.50. During the month of June, 30,000 lbs.of materials were used for producing 2,900 units of X.

The actual price of materials was Re. 0.48 per lb.

* Calculate the variances.

Compute :

Material Cost Variance

Material Price Variance

Material Usage Variance

Answer:Direct material:

Price variance = ($14 $12) x 2,500 = $5,000 (U)

Quantity variance = [2,500 (600 x 5)] x $12 = $6,000 (F)

Flexiblebudget variance = $5,000 (U) + $6,000 (F) = $1,000 (F)

Direct labor:

Price variance = ($13 $14) x 1,550 = $1,550 (

Question. 4. Given the Balance Sheet of a Company as under

Liabilities	Rs.	Assets	Rs.
Equity shares of Rs. 10 each	10,00,000	Fixed Assets	15,00,000
General Reserves	2,00,000	Stock	5,00,000
7 % Debentures	3,00,000	Receivables	4,00,000
Term Loan from X Bank	5,00,000	Cash	1,00,000
Overdraft		2,00,000
Creditors and Bills		3,00,000
25,00,000		25,00,000

Calculate :

i) Current ratio

ii) Quick ratio

iii) Debt-equity ratio

iv) Proprietary ratio

v) Solvency ratio

Question. 5. What is Transfer Pricing ? Explain Transfer Pricing options.

Answer:Transfer pricing is the setting of the price for goods and services sold between controlled (or related) legal entities within an enterprise. For example, if a subsidiary company sells goods to a parent company, the cost of those goods paid by the parent to the subsidiary is the transfer price. Legal entities considered under the control of a single corporation include companies that are wholly or majority owned ultimately by the parent corporation. Certain jurisdictions consider entities to be under common control if they share family members on their boards of directors. Transfer pricing can be used as a profit allocation method to

Question. 6. Given S.P (p.u.) Rs. 100, V.C. (p.u.) Rs. 50, Total Fixed Cost : Rs. 1, 00, 000find : i) BEP ; ii) P/V Ratio ; iii) Sales required to earn profit of Rs. 50,000 andiv) New BEP if S.P. is reduced by 15 % due to competition.

From the above calculate :

i) BEP

ii) P/V Ratio

iii) Sales required to earn profit of Rs. 50,000

iv) New BEP if S.P. is reduced by 15 % due to competition

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

help.mbaassignments@gmail.com

or

call us at : 08263069601