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DRIVE
Fall 2014
PROGRAM
-BBA
SEMESTER-
4
SUBJECT
CODE & NAME
BBA
402 & MANAGEMENT ACCOUNTING
Q.1.
Budgetary control is a strong business tool that helps companies maximizes
profits. Explain the characteristics and objectives of a budgetary control
system. (Explanation of characteristics of budgetary control system,
Explanation of objectives of budgetary control system) 5,5
ANS:
Characteristics of budgetary control system
Budgets
may be classified as following types:
Q.2.
The success of a business enterprise depends to a great extent on how
efficiently and effectively it can control costs. Give the meaning of standard
costing. Describe estimated cost and standard cost. (Meaning of standard
costing, Explanation on estimated cost and standard cost) 5,5
ANS:
Meaning
of Standard Costing
Standard
costing is an essential part of the overall planning and control system
in an organisation. Standard cost is a predetermined cost based on a
technical estimate for materials, labour and
Q.3.
Marginal costing plays a major role in making certain decisions. It provides
information to management regarding the behavior of costs and the incidence of
such costs on the profitability of an undertaking. Please explain the
advantages of marginal costing. ( Advantages of marginal costing (cover all the
13 important points) 10
ANS:
Advantages
of Marginal Costing
Marginal
costing, as one of the tools of management accounting, helps management
in making certain decisions. It provides management with information
regarding the behaviour of costs and the incidence of such costs on the
profitability of an undertaking. Marginal costing is defined as ‘the
Q.4.
Variance analysis is a tool for measuring performance and depends on the
principle of management by exception. Explain the uses of variance. From the
following information, calculate sales margin price variance and sales margin
volume variance.
(Uses
of variances, Calculation of standard margin price variance and sales margin
volume variance) 5, 5
ANS:
Uses of
Variances
It is
important to note that the mere estimation of variances is not sufficient, but
their analysis and understanding the causes for variance is the ultimate aim
to control costs. Thus, variances are
Q.5.
Explain the determinants of working capital requirements. (Explanation of all
the determinants of working capital requirements) 10
ANS:
Determinants
of Working Capital Requirement
A firm
should plan its operations in such a way that it should have neither too
much nor too little working capital. The total working capital requirement is
determined by a wide variety of factors. These factors, however, affect different
enterprises differently. They also vary from time to time. In general, the
following factors are involved in a proper assessment of the quantum of working capital
Q.6.
From the following information prepare (i) a statement of sources and uses of
funds and (ii) a schedule of changes in working capital for M/s. Eshwari &
co. Balance sheets as on 31stMarch 2010 and 2011 are:
Additional
Information
(i)
Depreciation of Rs. 2,500 charged on Land & Buildings
(ii)
Building amounting to Rs. 5,000 was sold for Rs. 4,700.
(Calculation
and preparation of schedule of changes in working capital, Preparation of
statement of sources and uses of funds) 5,5
ANS:
Solution:
Get fully solved assignment, plz drop a mail with
your sub code
computeroperator4@gmail.com
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For other rs 125/subject only
if urgent
then call us on 08791490301, 08273413412
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