DRIVE PROGRAM SEMESTER SUBJECT CODE & NAME BK ID CREDIT MARKS

ASSIGNMENT FALL 2013 BBA 4 BBA402 MANAGEMENT ACCOUNTING B1713 4 60

Marks Total Marks Criteria Q.No Budgetary control is a strong business tool that helps companies maximize profits. Explain the 1 A 2 advantages of budgetary control. Explanation of advantages of budgetary control 10 10

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 5 10 Explanation on estimated cost and standard cost 5 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 Sales price per Product Qty. Sales price per unit Std. cost Product Qty. unit (units) Rs. per unit (units) Rs. Rs. A 600 20 12 A 800 24 B 400 1,000 15 9 B 600 1,400 12

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

5 5

10

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. Trading and profit & loss account To opening stock By closing stock To purchases To gross profit 76,250 By sales 98,500 3,22,250 2,00,000 5,98,500 5,00,000

5,98,500

To selling expenses 22,000 To administrative expenses 98,000 To loss on sale of assets 2,000 To net profit 90,000 2,12,000

By gross profit b/d 2,00,000 By dividend on shares 9,000 By profit on sale of shares 3,000 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 5 A Calculation of all the ratios 10 Explain the determinants of working capital requirements. Explanation of all the determinants of working 10 capital requirements

10

10

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 Equity share Capital Redeemable Preference share General Reserve 7,500 Profit & Loss A/c. 6,250 Creditors 15,000 Bills Payable 5,000 1,08,750 2,500 1,22,500 1,08,750 1,22,500 20,000 Cash 6,250 8,750 8,750 Stock 18,750 20,000 8,750 Bills Receivables 8750 1,250 2010(Rs.) 50,000 2011(Rs.) 62,500 Assets Good will Land & Building 25,000 20,000 Debtors 22,500 25,000 2010(Rs.) 15,000 37,500 2011(Rs.) 12,500 55,000

Additional Information (i) (ii) A Depreciation of Rs. 2,500 charged on Land & Buildings Building amounting to Rs. 5,000 was sold for Rs. 4,700. 5 5 10

Calculation and preparation of schedule of changes in working capital Preparation of statement of sources and uses of funds *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.