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1. 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;bothare pre-determined,comparisonwill be made withthe actual costsand 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.

2. 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

3. 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:Transferpricingisthe settingof the price forgoodsand servicessoldbetweencontrolled(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 entitiesconsideredunderthe control of asingle corporationincludecompaniesthatare wholly
or majorityownedultimatelybythe parentcorporation.Certainjurisdictionsconsider 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
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