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Reg. No. : .............................

Name : ..................................

Third Semester B.B.A. Degree Examination, January 2023

Career Related First Degree Programme under CBCSS

Group 2 (b)

Core Course

BM 1343 : COST AND MANAGEMENT ACCOUNTING

(2014 – 2016 Admissions)

Time : 3 Hours Max. Marks : 80

SECTION – A

Answer all questions in 1 or 2 sentences. Each question carries 1 Mark.

1. Define financial statement.

2. Define master budget.

3. What you mean by vertical analysis?

4. What you mean by cash budget?

5. Define a budget period.

6. What is ZBB?

7. Define working capital.

8. What you mean by funds from operations?

9. What is margin of safety?

10. Define financial accounting.

(10  1 = 10 Marks)

P.T.O.
 SECTION – B

Answer any eight questions not exceeding 1 paragraph. Each question carries
2 marks.

11. What are the objectives of management accounting?

12. Explain the objectives of cost accounting.

13. List out the limitations of management accounting.

14. Explain the scope of management accounting.

15. What are the functions of cost accounting?

16. Explain the scope of cost accounting.

17. What is common size income statement?

18. What is inter firm analysis?

19. Define stock velocity.

20. Explain leverage ratios.

21. What you mean by budget key factor?

22. What is EPS?

(8  2 = 16 Marks)

SECTION – C

Answer any six questions not exceeding 1 page. Each question carries 4 marks.

23. Distinguish cost accounting and management accounting

24. Explain different types of financial statement analysis.

25. What you mean by ratio analysis? State the significance of ratio analysis.

26. What is a cash flow statement? What are its objectives.

27. Explain the uses of fund flow statements.

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28. Calculate gross profit ratio from the following figures:
Sales: Rs.10,00,000, Sales Returns: Rs.2,00,000, Opening Stock: Rs.6,00,000,
Purchases: Rs.1,50,000, Closing Stock: Rs.65,000

29. Current liabilities of a company are Rs.3,00,000. Its current ratio is 3:1 and quick
ratio is 1:1. Calculate the value of stock.

30. Calculate cash flow from operating activities from the following for the year ended
31-03-2020.
Profit made during the year Rs.2,50,000 after considering the following:
Depreciation written off: Rs.10,000
Amortization of good will: Rs.5,000
Transfer to general reserve: Rs.7,000
Profit on sale of land: Rs.3,000
The following is the position of current assets and current liabilities.
01-04-2019 31-03-2020
Sundry debtors 12000 15000
Sundry creditors 15000 10000
Bills receivables 10000 4000
Prepaid expenses 6000 4000

31. Calculate the factory cost from the following data :

Rs.
Cost of Direct Materials 2,00,000
Direct Wages 50,000
Direct expenses 10,000
Wages of Foreman 5,000
Electric Power 2,000
Lighting of the Factory 4,000
Storekeeper’s Wages 2,500
Oil and Water 1,000
Rent of the Factory 10,500
Depreciation in Plant 1,000
Consumable Store 5,000
Repairs and Renewal Plant 7,000
(6  4 = 24 Marks)
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 SECTION – D
Answer any two questions not exceeding 4 pages. Each question carries
15 Marks.
32. Prepare cash flow statement with imaginary figures.
33. Explain different types of activity ratios.
34. From the following details, ascertain funds from operations.

2018 2019
Surplus statement of P&L 50,000 60,000
General Reserve 30,000 40,000
Goodwill 20,000 12,000
Preliminary expense 6,000 4,000
Accumulated Depreciation 25,000 40,000
Income from non-current investments – 20,000
Preference shares of the face value of 100000 were redeemed during 2019 at a
premium of 10%. The premium on redemption was charged to the P & L account.
35. XYZ ltd. wishes to arrange OD facilities with its bankers during the period April to
June. Prepare cash budget for the above period from the following data.

Month Cash sales credit sales Cash Purchase Credit Purchase Wages
Feb 60,000 90,000 45,000 80,000 20,000
March 90,000 1,05,000 70,000 1,00,000 26,000
April 85,000 1,60,000 80,000 90,000 24,000
May 70,000 1,10,000 75,000 1,00,000 30,000
June 65,000 1,20,000 75,000 1,30,000 35,000
Additional Information :
Lag in payment of debtors – one month
Lag in payment of creditors – 2 month
Lag in payment of wages – ½ month
Every month 3000 is to be paid for overheads
A machinery is to be brought in cash in June for Rs.10,000
Cash at bank on 1 April 2020 is expected to be Rs.4,000

(2  15 = 30 Marks)
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