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ASSIGNMENT
| DRIVE SPRING | 2014 |
| PROGRAM | BBA |
| SUBJECT CODE & NAME | BBA402 MANAGEMENT ACCOUNTING |
| SEMESTER | 4 |
| 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.
1.Explain the importance of Management Accounting and Need of Management Accounting.
Ans : Small business owners are faced with countless decisions every business day. Managerial accounting information provides data-driven input to these decisions, which can improve decision-making over the long term. Small business managers can leverage this powerful tool to help make their business more successful by understanding how management accounting benefits common business decision contexts.
Relevant Cost Analysis
Managerial accounting information is used by
2 Explain the various steps in Budgetary Control. Advantages of Budgetary Control.
Ans : STEPS IN BUDGETARY CONTROL
1) Organization for budgeting
2) Budget manual + Theory
“A document which sets out, inter alias, the responsibilities of the persons engaged in, the routine of and forms and records required for budgetary control.”
The budget manual is a written document or booklet that specifies the objectives of budgeting organization and procedures. Following are some of the important matters covered in a budget manual:
3 What is absorption costing? Explain the features of absorption costing. Write the differences between absorption and marginal costing.
Answer : Absorption costing means that all of the manufacturing costs are absorbed by the units produced. In other words, the cost of a finished unit in inventory will include direct materials, direct labor, and both variable and fixed manufacturing overhead. As a result, absorption costing is also referred to as full costing or the full absorption method.
Absorption costing is often contrasted with variable
4 Explain the three types of financing in working capital.
Raw material: Rs.80 per unit, labour: Rs.30 per unit; overheads: Rs.60 per unit, selling price/unit Rs.200: raw materials: one month, work in progress: 15 days, finished goods: 1 month; creditors: 1 month; debtors: two months, Wages: 45 days; overheads: 1 month; ¼ of production is sold in cash. Desired cash balance is Rs.3,65,000. Production per annum is 1,04,000 units. Estimate the working capital.
Ans : Statement of Estimation of Working Capital
| Raw material | 1 x 8667 x 80 | 6,93,360 | |
| WIP | ½ x 8667 x80 | 3,46,680 | |
| ½ x 8667 x 90/2 | 1,95,008 |
5 Use the following information to prepare:
A schedule of changes in working capital.•
A funds flow statement of Sahana• & Co.
| Liabilities | 31.03.2010 | 31.03.2011 | Assets | 31.03.2010 | 31.03.2011 |
| Capital | 185000 | 210000 | Goodwill (at cost) | 60000 | 60000 |
| P & L
Account |
147800 | 176400 | Land | 47400 | 52400 |
| Bank | 120000 | 90000 | Building | 19400 | 19400 |
| Loan | 140000 | 122000 | Plant | 82600 | 72400 |
| Bills Payable | 20000 | 18000 | Machinery | 120000 | 128000 |
| Creditors | Furniture | 80000 | 72100 | ||
| Provision for taxation | Inventory | 50000 | 48300 | ||
| Debtors | |||||
| Bills receivable | |||||
| Bank | |||||
| Cash | |||||
| 652800 | 684400 | 652800 | 684400 | ||
Ans : Solution :
| Schedule of chages in Working Capital | ||||
| Working Capital Change | ||||
| Particulars | Previous Year | Current Year | Increse | Decrease |
| A. | Current Assets | |||
| Inventory | 82,600 | 72,400 | 10,200 | |
6 Give the meaning of dividend policy. Explain the significance of dividend decision and types of dividend policy.
Ans : Distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (dividends per share). It can also be quoted in terms of a percent of the current market price, referred to as dividend yield.
Dear students get fully solved SMU BBA Spring 2014 assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601