[This question paper contains 16 printed pages.

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2-0, f 2-. 2-02-.4(M).
Your Roll No .
Sr. No. of Question Paper 834

Unique Paper Code 2412083503

Name of the Paper Management Accounting
Name of the Course B.Com. (H) UGCF
Semester V-DSC
Duration : 3 Hours Maximum Marks: 90

Instructions for Candidates

1. Write your Roll No. on the top immediately on receipt of this question paper ..

2. Attempt All questions.

3. AU questions carry equal marks.

4. Use of Simple Calculator is allowed.

5. Working notes should form part of your answer.

·6. Answers may be written either in English or Hindi; .but the same medium. should
be used throughout the paper.

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834 2
1. (a) Management accounting is an extension of managerial aspects of cost
accounting. Explain the statement and clearly distinguish between cost
accounting and management accounting. (9)

(b) Define and explain responsibility accounting. What are the pre-requisites for
. . . .
introducing responsibility accounting in a company? . (9)

Or

(a) "Management accounting 1s nothing else but financial and cost

accounting tailored to the requirements of management." Critically examine.
the statement. (9)

(b)· Explain the concept of responsibility accounting. Discuss creation of various

types of responsibility centres for its effective implementation. · (9)

2. (a) Write a brief note on Budgeting Key Factor. (4)

(b) PS Limited produces and sells a single product. Sales· budget for calendar
year 2025 as per quarters is as under:

Quarters I II III IV

No. of units to 18,000 22,000 25,000 27,000

be sold

The year is expectedto open with an inventory of 6,000 units of finished

products and close with inventory of 8,000 units. Production is customarily
scheduled to provide for 70% of the current quarter's sales demand plus
30% of the following quarter demand.

You are required to prepare quarterly as well as whole yearly statement

showing opening stock, production and closing stock of the product.
(14)
834 ' 3.

Or

The Budget Manager of a company is preparing a flexible budget for the coming
accounting year. The company produces a single product. The following information
is provided:

Direct material costs· Rs.2·8 per unit. Direct labour averages Rs.12.50 pe~ hour
. and requires 1.60

hours to produce 'one unit of the product. Salesmen are paid a commission of
Rs..5 per unit sold.

Fixed selling and administration expenses amount to Rs.3,75,000 per year.

Manufacturing overheads have been estimated in the following amounts under

given conditions of volume:

Volume of Production & Sale

Expesee For 1,20,000 units(Rs.) For 1,50,000 units(Rs.)

. 3,30,000
Indirect materials 2,64,000

Indirect labour 1,50,000 1,87,500

Inspection 90,000 I, 12,500

Maintenance 84,000 1,02,000

Supervision 1,98,000 2,34,000

Depreciation--Plant &
90,000 90,000
Equipment
Engineering services 94,000 · 94,000

Total Manufacturing
· 9,70,000 11,50,000
Overheads .

Prepare a total production cost budget at a production level of 1,40,000 units

stating clearly the cost behaviour of each cost to output.

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834 4

3. · ABC Limited., a manufacturing concern which has adopted standard costing

furnishes the following information for the month ending March 31, 2024:

The standard mix to produce 10 units of product Z is as under:

Material A 300 kg. @ Rs.30 per kg

Material B ,400 kg. @ Rs.50 per kg

Material C 500 kg. @ Rs.40 per kg

During the· month of March, 2024, 100 units of product Z were actually produced
and consumption was as urider-

Material A 3,200 kg. @ Rs.35 per kg

MaterialB 4,750 kg. @ Rs.55 per kg

Material C 4,350 kg. @ Rs.36 per kg

Required: Calculate the following material variances:

(i) Material Cost Variance
(ii) Material Price Variance

(iii) Materia_l Usage Variance

(iv) Material Mix Variance

(v) Material Yield Variance

Or

_(a) Calculate : (i) EfficiencyRatio; (ii) Activity Ratio; (iii) Capacity Ratio, from
the.following information :

Budgeted Production 750 units

Budgeted Hours per unit 5
Actual Production 780 units
Actual Hours taken 4,000 (6)
834 5

(b) · Compute the sales variances (total, price and volume) from the following
figures:

Budgeted Actual
Product/Quantity/Price
Units Price (Rs.) Units Price (Rs.)

A 4;000 25 4,800 30

B 3,000 50 2,800 45

C 2,000 75 2,400 70

D 1,000 100 800 105

(12)

4. (a) MFN Limited started its operation in 2022-23 with the total production
capacity of 2,00,000-units. The following data for two years is made available
to you:

2022-23 2023-24

Sales units 80,000 1,20,000

Total cost ( Rs.) 34,40,000 45,60,000

There has been no .change in the cost structure and selling price and it is
. _ expected to continue in 2024-25 as well.

Selling price is Rs.40 per unit. You are required to calculate :

(i) Break-Even Point (in units)

(ii) Profit at 75% of the total capacity (9)

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834 6
(b) The fol1owing data relates to a manufacturing·company:

Plant Capacity= 4,00,000 units per annum. Present Utilization= 40%

Actual for the year 2023-24 were:

Selling price= Rs.50 per unit, Material cost= Rs.20 per unit,

Variable Manufacturing costs = Rs, 15 per unit and Fixed cost =

Rs. 27,00.000.

In order to improve capacity utilization, th_e following proposal is considered :

Reduce Selling price by 10% and spend additionally Rs.3,00,000 in Sales

Promotion.

How many uni.ts should be produced and sold in order to increase profit by
Rs. 8,00,000 per year? (9)

Or

(a) What do you mean by PN ratio? Discuss its significance in decision-making.

How it can be improved? (6)

(b) The Cost-Volume-Profit relationship of SR Ltd. is described by the equation:

Y = Rs.2,40,000 + 0.6X, in which X represents sales revenue and Y is the

total cost (FC + VC) at the sales revenue / Volume represented by X.

Required:

(i) Identify the P/V Ratio.

(ii) What sales volume must be obtained· to break- even for the Companyv

(iii) Analyze Sales volume to be required to produce an income Rs.1,00,000.

(12)
834 7

5. SR Ltd. gives you the following details of its existing operations·

Selling price (Rs.) 20

Variable Cost per unit (Rs.) 15

Fixed Cost (Rs.) 50,000

Actual Output and Sales (units) 25,000

The management is considering a proposal for modernisation of its production

operations. ·

As per this proposal the cost ·structure is estimated to be as follows :

Selling price (Rs.) 20

Variable Cost per unit (Rs.) 10

Fixed Cost (Rs.) 1,50,000

As a management accountant of the company, you are asked to give the following
calculations and advice for consideration by the management :

(i) The level of output under the proposed alternative where the company .will
earn the same amount of profit as being earned lit existing level of sales
operations.

(ii) Range of sales where existing operations and the proposed modernization
will be more profitable. Whether, the company should consider the
modernization of production facility at existing level of sales operations.

(iii) Prepare a comparative statement of profit under the two alternatives if the
company plans to produce and sell 30,000 units.

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834 8

Or

(a) Explain the concept of key factor in management de.cision making with
examples? Also discuss the criteria used to measure the relative profitability

when a key factor is in play.· (6)

(b) Isha Ltd., produces three products A, B and C and for each of them uses
three different machines X, Y and Z. Relevant data for June, 2024 are given

below:

Product A B C

Selling Price per unit (Rs) 10,000 8,000 6,000

Variable cost per unit (Rs.) 7,000 5,600 4,000

Machine-wise hours required per unit:

MachineX 20 12 4

MachineY 20 18 6

Machine Z 20 6 2

Expected Demand (units) 200 200 200

Machine Z is identified as the bottleneck and its capacity is limited to 5,400

hours. Calculate the optimum product mix· from above information and
ascertain the total profit at the mix so determined if fixed cost amounts to
Rs._7 ,80,000 (12)
834 -=¼,r.:ri== ~r=-r-= 9
1. (<f>) ~ ;i<qic:fi-1 ~ ~<ctic:fi"I ctr ~ ~3il' cfiT ~ ~, ~ cfit
15q'J(&Jf ~ ~ ~ ~<cticfi-1 ~ ~ ~ cfi' ~ ~ ~ ~ 3iw
~i
(9)

(<n) "~u;:r ~(qlcfi-'! ~ ~ '-'ftt ~ ~ cfiT 3flq:!4cfi€11,jff cfi' ~ w;JR

~ ~ ~ ~ ~ H<qlcfi-1 ~I" ~ ~ cfiT ,j,jic-fht-11~tcfi ~-

~• (9)

(4)

('(C;f) ~ ~1'+12:s ~. 1ft ~ cfiT 3f<.ll<M ~-~~'ti ~ crtf 2025 ctr

~ ~ ~ R\"fl~Q\· cfi' ~ l;j.J.-il':J<i!R ~ :

Rl"II~ I II III IV
~~~ 18,000 22,000 25,000 27,000
~of, I$_ ,:fi of;,- -
~r

crtf cfiT ~3TTa-, w;JR ~ cfiT 6,000 ~cfil~Q\· ~ ~ cfi' ~ ~ ~ 8,000

cfiT ~
~cfi1~Q\' ctr ~ ffl cfiT ~ ~I 3Nlc;"! cfiT 3Wf ~ 1R ~ ~
cfiT ~ ~ ctr 70% ~ ~ -~ cfiT ~ ctr 30% ctr ~ ~ ~
-;mm ~I ~ ~ cfi' ~am% ~, 3f<.llc;.-f. ~ ~ ~ <fil ~ S~
~ 3~ ~ ~ ~ ~ ~ ~, (14)

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834 10

~ ~ cfiT ~ ~, ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ UTT

~I ~ ~ t't ~~~I f-:1,,...ifBRcld "11..fcfil~ ~ <rr{ ~.:

~ ~ cit ~ 28 ~ ffl ~ t, ~ ~ ~ 12.50 ~ ffl -:'eicT

~ 3ITT: ~ cit ~ ~ cfiT 3~1G-'I ~ ~ ~ 1.60 W cit J)Uql!4cf!dl ~
~. i\~4\-'t cfTT" ~ 'l1f ~ ~ ~ 5 ~ cfiT ct,.li\l!l-'t ~ "(ii'fclT ~. f.:lru'<ta ~
3ITT: ~ o!flf ffl ~ 3;75,000 ~ ~.

Fctf.i.a:rro, d{\q(~&_;a cfiT ~ . ~ 'l1f ~ cit 'ffifl' ~ "d6d' F\:h181Rcla <Tfmm 'it~
~ i:

, '3cql~rf ~ ~ ~ ~

1,20,000 ~ofil~41 il;~ 1,50,000 1iofi1~41 il; ~

~ <~-) <~-)
~=r ~ 2;64,000 3,30,000

~ '5l+1 1,50,000 1,87,500

~ 90,000 1, 12,500

~~~let 84,000 1,02,000

~ 1,98,000 2,34,000

ir'-"<l~I~ -~ ~ '3qcfi~lll 90,000 90,000

~'311 f.:I <l ~i, ~ . 94,000 94,000

~ ~f.l:qfo1 sna1 . .~~ 9,70,000 11;so,ooo

1,40,000 t;cfil~<.ft· ~ 3t<IIG-'I ~ ~ ~ '3t<IIG"1. ~ ~ ~ ~ ; ~ ~

~ cf>T 3113c.~c. ~ ~ ~ ~ -m 'i\" ~ ~ it1
834 11

3. ~ fc1Pl'iio1 sifa,soi-i ABC R;:ifi\2:s, ~ ~ ~ ~ cfil" ~ ~ •. 31 ~

2024 <:fTT ~ ~ ~ ~ · Pl+.aiR;:i~a "11"1cfil~ ~ <fITTIT ~ :

~ A 300~.@30~~~

~B 400 ~- @ 50 ~ ~ ~

~ C 500~.@40~-smtfimrr

~, 2024 ~ ~
.
mu;;r, ~
.
Z ~ 100 ~<hl!{qf cnT ~ ~ d~IG-i ~ ~

3lk ~ ~ ,;(qi"R ~-

~ A 3,200 ~- @ 35 ~ ~ fimrT

~ B 4,750 ~- @ 55 ~~~

~ C 4,350 f.!lrar. @ 36 ~ ~ f.!lrar

--,ttql!l.lcfi : Pl+.aiR;:i~ d ~ ~3ff <tt ~ ~:

(i)~~~

(ii)~~~

(iii)~ ~ ~

.(iv)~~~

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834 12

(q;) '"lfURT ~: (i) ~ ~ (ii) •lfaf4~ ,j1:J.4klll (iii) ~ ~'

Pl'h-l~Rc4 a "11""1cfii<I -«;
<il"1R:tt 3t<li<H 750 ~cfii~lli

<il"1R:tt w ma ~ 5

ql'@i'4cfi 3t<li<;"1 780 ~cfil~lli

q lfttf4 cfi w 4,000 (6)

cilG'l~~ Actual
~/~/~
~ ~ (~.) ~ ~ (~.)

A 4,000 25 4,800 30

B 3,000. 50 2,800 45

C 2,000 75 2,400 70

D 1,000 100 800 105

(12)

4. (cf>) (?"1(?lfi1.F1 R-:1~2:s ~ 2022 ..,.- 23 ·-if 2 ,00 ,000 ~cfil~in- ctf ~ 3t<lli;"1 ~ ~

~ ~ qf<'il,~H ~ "-Fcnm, ~ q\'iIT ~-~ Pl'h-l~Rc4a m 31Jqcfif ~ ~

~ it:
834 13

2022- 23 2023 -24

80,000 1,20,000

~-~ <~-) 34,40,000 45,60,000,

~ ~ 3m: ~ ~ ~ ~ ~ .:rn'f 1?;3ll ~ 3m: ~ ~-~ ~

2024-25 iY -~ '1fRt ~.

(i) Tcfi"-~ ~ (~ iY)

(ii) ~ ~ cf> 75% 1R ~ (9)

~ ~ = 4!00,000 ~ ~ ~, ~ ~ = 40%

~ 2023-24 cfi" ~ .;m,..-tl'¾cti ~:

~ ~ iY WIR ~ cf> ~ ~+.ifi,q~a ~ -q-{ ~ ~ ~ ~

~~.
~ ~ iY 10% ~ ~ ~~ 3lk ~ ~ iY 31RIR'<ffl 3,oo,ooo ~

~ iY ~ ~ 8 ,00 ,000 ~ ~ ~ ~ cf> ~ ~ ~cfil~<tl- cfiT 3{-<lli:;--1

3m: finm ~ ~ ~? (9)

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834 14

(en) P/V ~ ~ 31N<fil ~ ~ -g-? ~ ~ ~ ~ ~ ~ ~ ~I

~ ~ ~ ~ ~ \YIT ~ -!? (6)

Y = Rs.2,40,000 + 0.6X, ~ X ~ ~ ~ . ~ . aft{ Y ~

~ ~ ~ CWf mmf (FC + VC) '! ~ X aRT ~ mil' ~I

·(i) P/V ~ ct'I- ~ ~I

20

m=a- ~ qf{cld-il<-4 mm=r <~-) 15

~ ~ <~-) 50,000

25,000 .

~ ~ 3t<il~--t cf'iTZU Cf> 3tlqPfciilcfi(OJ cfi' ~ ~ ~ cfi<_" ~ tl1 ~ ffl'fflcf

Cf> 3l¥'R mm=r ~ Pt:a:.t1~1< di~•·nPta -! :

834 15

20

10

~ ~ <~-). 1,50,000

~ ~ ~ <i'\<qlcfiR ~~~,~~am T<t-i:1R ~ ~ ~....if~l¾a ~

31R ~ ~ ~ ~ 'cfi1TT \i{@T ~:

(i) Sl~lfcla ~ ~ mra 3t<tl<:-i cfiT ~ '1'fiIT ~ ~ .a¼l<'l-i ~ ~ ~.

'Q<: ~~~~~ ~cfihTt

(ii) ~ ctt ~ ~ '1'fiIT ~ qfn:m.-t-1 31R Sl~lfcla ~.q~cfilcfi{OI ~ ~

lTTml cf<:{f ~ cfil ~ qR-,:;ii<'l-i ~ ~ ~ 'Q<: dt<ti<:-1 ~ ~ atiq~cfilcfi{OI .

'Q<: T<t-i:1R ~ ~I

(iii) ~ ~ 30,000 ~cfil~4f cfiT 3t<il<:-i 31R ~ ~ cfi't ~ ~ *, m

·c?t fclcfi ..... fi' ~ mra ~ ~ tl<'l-i1€'11cfi ~· ~ ~•

~ ~ ~ cf>Rcfi cfiT4f ~ 31@T ~ m mtt&T ~ ~ ~. ¾ ~ ~

~ ~ ~ 'Q<: ~ ~ cfRI (6)

(~) fu ~~2s ~ ~ A, B 31R C cfiT 3t<llq-i ctffilt ~ 31R ·~ "if. ~

~ ~ ~ 3«-m-~ ~ X, Y 31R Z 'cfiT ~ ~ -g1 ~, 2024

~ ~ 1,1,.a'Plcfi .m ~ ~ ~ ~:

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834 16

~ A B C
,;mt~~ ~ (~. ) 10,000 8,000 6,000
,;mt ~ q R;,i <:r.fl ~ ffi--;rcf (~.) 7,000 5.600 4,000·

,;mt ~ 1:J'Qfl rl cl I ;i:: ~~~:

1:J'Qft.:r X 20 12 4
1:J'l?ft.:r y 20 18 6
1:J'l?ft.:r z 20 6 2

~1TT1T (·'l.:~l'l.:~f) 200 200 200

~ z cm "'1m ci'i ~ ii' ~ ~ "1]<:IT * 3TI'{ ~ ~ s.aoo ~ ~ ~

~ *' 3q{lq+i "11-1<:fil~ ~ ~ ~ ~l';f!JT "<tt ~ ~ 3TI'{ ~ Wi>R:

*' (12)

(10,000)