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ASSIGNMENT
DRIVE SPRING 2014
PROGRAM BACHELOR OF BUSINESS ADMINISTRATION-BBA
SEMESTER 4
SUBJECT CODE &
NAME
BBA 402 & MANAGEMENT ACCOUNTING
BK ID B1713
CREDIT & MARKS 4 Credits, 60 marks
Q.No Questions Marks Total Marks
1 Explain the importance of Management Accounting and Need of Management
Accounting.
Explanation of Management accounting
Need of Management Accounting
7
3
10
2 Explain the various steps in Budgetary Control. Advantages of Budgetary Control.
Steps in Budgetary Control
Advantages of Budgetary Control
4
6
10
3 What is absorption costing? Explain the features of absorption costing. Write the
differences between absorption and marginal costing.
Absorption costing
Features of absorption costing
Difference between absorption and marginal
costing
3
3
4
10
4 Explain the three types of financing in working capital.
Raw material: Rs.80 per unit, labour: Rs.30 per unit; overheads: Rs.60 per
unit, selling price/unit Rs.200: raw materials: one month, work in progress: 15
days, finished goods: 1 month; creditors: 1 month; debtors: two months, Wages:
45 days; overheads: 1 month; ¼ of production is sold in cash. Desired cash
balance is Rs.3,65,000. Production per annum is 1,04,000 units. Estimate the
working capital.
Explanation of financing of working capital
Estimation of working capital
3
7
10
5 Use the following information to prepare:
 A schedule of changes in working capital.
 A funds flow statement of Sahana & Co.
Balance Sheet of Sahana & Co.
Liabilities 31.03.2010 31.03.2011 Assets 31.03.2010 31.03.2011

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Capital
P&L
account
Bank
loan
Bills
payable
Sundry
Creditors
Provision
for
taxation
1,85,000
1,47,800
1,20,000
40,000
1,40,000
20,000
2,10,000
1,76400
90,000
68,000
1,22,000
18,000
Goodwill (at
cost)
Land
andbuilding
Plant
andmachinery
Furniture
Inventory
Sundry
Debtors
Bills
Receivable
Bank
Cash
60,000
1,85000
47,400
19,400
82,600
1,20,000
80,000
50,000
8,400
60,000
2,20,000
52,400
19,400
72,400
1,28,000
72,100
48,300
11,800
6,52,800 6,84,400 6,52,800 6,84,400
Schedule of changes in working capital
Fund flow statement of Sahana & Co
5
5
10
6 Give the meaning of dividend policy. Explain the significance of dividend decision
and types of dividend policy.
Meaning of Dividend policy
Significance of dividend decision
Types of dividend policy
3
2
5
10
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.