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ASSIGNMENT
DRIVE SUMMER 2014
PROGRAM BBA
SEMESTER 4
SUBJECT CODE &
NAME
BBA402 MANAGEMENT ACCOUNTING
BK ID B1713
CREDIT 4
MARKS 60

Q.No Criteria Marks Total Marks
1
Budgetary control is a strong business tool that helps companies maximize profits. Explain the
advantages of budgetary control.
A Explanation of advantages of budgetary control

10 10
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.
A Meaning of standard costing
Explanation on estimated cost and standard cost

5
5
10
3 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.
Budgeted Sales Actual Sales
Product Qty. Sales price per unit Std. cost Product Qty. Sales price per
unit (units) Rs. per unit (units) Rs.
Rs.
A 600 20 12 A 800 24
B 400 15 9 B 600 12
1,000 1,400

A The uses of variances
Calculation of standard margin price variance and
sales margin volume variance

5
5
10
4 The following are the summarised trading and profit & loss accounts of Mysore Jewellers for the
year ending 31 December 2002 and the balance sheet as on that date.
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Trading and profit & loss account

To opening stock 76,250 By sales 5,00,000
To purchases 3,22,250 By closing stock 98,500
To gross profit 2,00,000
5,98,500 5,98,500

To selling expenses 22,000 By gross profit b/d 2,00,000
To administrative expenses 98,000 By dividend on shares 9,000
To loss on sale of assets 2,000 By profit on sale of shares 3,000
To net profit 90,000
2,12,000 2,12,000


You are required to calculate the following ratios:
1. Gross profit ratio
2. Net profit ratio
3. Operating ratio
4. Operating profit ratio
5. Stock turnover ratio
6. Turnover of fixed assets
7. Return on total resources


A
Calculation of all the ratios

10
10


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5 Explain the determinants of working capital requirements.
A Explanation of all the determinants of working
capital requirements

10 10
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:

Liabilities 2010(Rs.) 2011(Rs.) Assets 2010(Rs.) 2011(Rs.)

Equity share Capital

Redeemable Preference
share

General Reserve

Profit & Loss A/c.

Creditors

Bills Payable

50,000


25,000


7,500

6,250

15,000

5,000

62,500


20,000


8,750

8,750

20,000

2,500

Good will

Land & Building

Debtors

Bills Receivables

Stock

Cash

15,000

37,500

22,500

8750

18,750

6,250


12,500

55,000

25,000

1,250

20,000

8,750
1,08,750 1,22,500 1,08,750 1,22,500

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.

A Calculation and preparation of schedule of changes
in working capital
Preparation of statement of sources and uses of
funds
5

5

10
*A-Answer

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.




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