Exam with solutions - Managerial acctFull description
(ii) In the above problem indicate which costs and benefits are irrelevant in your decision making. 2
BBA FOURTH YEAR SEVENTH SEMESTER EXAMINATION, 2012 MANAGEMENT ACCOUNTING Subject Code : 4102 Examination Code 607 Time — 3 hours Full marks — 70 70 [N.B. — — The The figures in the right margin indicate full marks. All parts (a, b, c) of a question must be answered sequentially.] Part A — Short Short Questions (Answer any five questions) Marks — 6x5=30 6x5=30 Marks 6
1.What are the major differences between financial accounting and managerial accounting? 2.(a) "A variable cost is a cost that varies per unit of product, 3 whereas a fixed cost is constant per unit of product." Do you agree? Explain. (b) Why regression analysis is usually preferred to the high-low 3 method of allocation of mixed costs? 3.(a) How we can measure the performance 'of a cost center, a profit 3 center and an investment center? (b) Why aren't common costs allocated to segments under the 3 contribution approach? . 4.(a) Briefly describe the concept of zero based budgeting. 3 (b)Distinguish between forecasting and budgets. 3 5.(a) When and why profits will be higher in case of absorption 3 costing and variable costing? (b) Explain the significance of margin of safety. 3 6.(a) Juaria corporation has a single product whose selling price is $120 and whose variable expenses is $80 per unit. The company's monthly fixed expenses is $ 50000. Using the equation method solve for the unit u nit sales that are required to earn a target profit of $ 10000. (b) What is responsibility accounting? 2 7.(a) "If a product line is generating a loss, then it should be discontinued." Do you agree? Explain. (b) What do you mean by CVP? Describe the uses of CVP analysis. 3