smu BBA assignments Fall 2014

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ASSIGNMENT
DRIVE FALL 2014
PROGRAM BBA
SEMESTER 4
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.
Q.No Questions Marks Total
Marks
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
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.
Meaning of standard costing
Explanation on estimated cost and standard cost
5
5
10
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 10
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.

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Budgeted Sales Actual Sales
Produ
ct
Qty. Sales price per
unit
Std.
cost
Product Qty. Sales price per
(units) Rs. per unit (units unit
)
Rs.
Rs.
A 600 20 12 A 800 24
B 400 15 9 B 600 12
1,000 1,400
Uses of variances
Calculation of standard margin price variance and sales margin
volume variance
5
5
10
5 Explain the determinants of working capital requirements.
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

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(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
10