Management Accounting and Costing — Winter 2023

Explain meaning, Scope & Objective of Management Accounting.

Differentiate Management Accounting & Cost Accounting.

Explain the role of Cost & Management Accounting in decision making.

Explain the techniques of Strategic Management Accounting.

Prepare a Cost-Sheet for the year ended 31.12.2018 for M/s. Karan Enterprise Ltd. Particulars Rs. Stock of finished goods (01.01.2018) 6,000 Stock of raw-materials (01.01.2018) 40,000 Work-in-Progress (01.01.2018) 15,000 Purchase of raw materials 4,75,000 Carriage Inwards 12,500 Factory rent and taxes 7,250 Other production expenses 43,000 Stock of Goods (31.12.2018) 15,000 Wages 1,75,000 Work Manager’s Salary 30,000 Factory Employees’ Salary 60,000 Power Expenses 9,500 General Expenses 32,500 Sales for the year 8,60,000 Stock of raw materials (31.12.2018) 50,000 Work-in-Progress (31.12.2018) 10,000

Briefly explain Cost accounting standards. Page 1 of

Kareena Corporation produces Small Toy named “Spiderman” and it’s obtained after three distinct processes. The following information is available for the month of March, 2012: Particulars Total Processes I II III Material Consumed 22,626 7,800 5,940 8,886 Direct Labor 27,000 6,000 9,000 12,000 Production Overheads 27,000 – – – 3000 units of Raw Material at Rs.3 per unit were introduced in Process I. The actual output and normal loss of the respective processes are: Value of Scrap per unit Processes Output in Normal Loss (Rs.) Units on Inputs Process I 2850 5% Process II 2520 10% Process III 2250 15% There is no stock or work-in-progress in any process. You are required to prepare Process A/c of all three processes and Normal Loss A/c.

Write a note on Budgeting & Budgetary control systems.

The following is the information of Usha Ltd. Year Sales (Rs.) Profit (Rs.) 2019- 2,00,000 20,00020 2020- 2,40,000 28,00021 Find Out 1. P/V. Ratio 2. Fixed Cost 3. B.E.P (Rs) 4. Figure of Profit when sales are of Rs. 3,00,000 5. Figure of Margin of Safety when sales are of Rs. 4,00,000 6. Figure of sales to earn a profit of Rs. 1,50,000 7. Figure of sales at a loss of Rs. 2,00,000

How Inventory can be managed efficiently & effectively. Explain.

The Fair Deal Granary was not maintaining a perpetual inventory system for its stocks unit recently. Only physical inventory was taken at the end of each month. The physical inventory at the end of December 2007 showed 200 kgs of fine rice at Rs.212.25 per bag. The following purchases were made in January, 2008: 3rd January 400 bags at Rs.218.00 per bag 10th January 900 bags at Rs.223.50 per bag 15th January 400 bags at Rs.220.00 per bag 28th January 700 bags at Rs.213.00 per bag 30th January 300 bags at Rs.224.00 per bag On 31st January, 2008 the physical stock was 1,200 bags. You are required to calculate the value of the closing stock on 31st January, 2008 according to Last In- First-Out (LIFO) and Weighted Average Cost Method (WAM). Valuation of closing stock is highest under which method. Page 2 of

Acompany operates a hotel. It is spread over six floors of a building excluding the ground floor with a restaurant in the sixth floor. On the ground floor, the hotel operates a sports center including a swimming pool and a shopping arcade. The hotel has a capacity of 100 single rooms and 20 double rooms. The average occupancy of both single and double rooms is expected to be 80% throughout the year of 365 days. The rent for double room has been fixed at 125% of the rent of a single room. Cost are as under: Variable Costs: Single rooms ₹ 220 each a day. Double rooms ₹ 350 each a day. Fixed Costs: Single rooms ₹ 120 each a day. Double rooms ₹ 250 each a day. The income and costs relating to the service centers are as under: Restaurant: Estimated average sales per day ₹ 25000 Contribution 30% of sales Fixed costs Rs. 800000 per annum. Sports center: Average number of persons expected to use the center per day is 50. Average contribution per day per person is Rs. 15. Fixed costs Rs. 400000 per annum Shopping arcade: Average contribution per month is Rs. 35000 Fixed costs Rs. 400000 per annum.

Calculate the rent chargeable for single and double rooms per day in such a way that the hotel earns a margin of safety of 20% on hiring of rooms.

The hotel wants to reserve the normal occupancy of ten single rooms for its regular customer by allowing a discount of 10% on room rent. What increase in occupancy ratio is required in respect of the remaining rooms to earn the total profit of above 50 lakhs?

Evaluate the profitability of the three services centers and work for the total profit of the hotel per annum based on the rent of Rs. 460 per day for single room and Rs. 575 per day for double room.