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CHRIST (Deemed to be University), Bangalore – 560 029
School of Business and Management

END SEMESTER EXAMINATION – MAY 2023
UG IV Semester
Programme Name: BBA/BBAH/BBA F&IB /BBAT Max. Marks: 50
Course Name: Cost and Management Accounting Time: 2 Hours
Course Code: BBA431
General Instructions
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be left blank in the middle of the answer booklet
Course Outcomes (COs): The students will able to

CO1: Familiarize the learners with the basic concepts and processes used to determine
product costs.
CO2: Make known the students to ascertain Material, Labour, and Overhead cost
CO3: Enrich the knowledge of the learners in knowing and applying various tools like
ratio analysis, cash flow statement, and marginal costing for analyzing the financial
statements for managerial information
CO4: Provide a basic understanding of budgetary control
CO5: Develop the knowledge of the learners to understand and prepare a management
report
SECTION A
Q.NoAnswer the following questions (Internal choice-based questions). CO RBTL

Each question carries 5 marks Total Marks 3x5=15
1a In a firm the Fixed expenses for a period is Rs. 40,000 and sales at BEP CO-1 L2
is Rs.1,00,000. calculate a) P/V Ratio b) Profit when sales are
Rs.2,00,000 and b) New BEP when selling price is reduced by 20%.
OR
Explain the following: a) P/V ratio b) Margin of safety c) Breakeven

1b point d) Angle of incidence e) Contribution.
2a The standard ratios for the industry and the ratios of Company X are
given below.
Information Industry Std. Actual Ratio CO 4 L3
Current Ratio 2 2.5
Inventory Turn over 8times 6 times
Ratio
Debtors Turnover 1 month 2 months
ratio
Debt Equity Ratio 1:1 2:1
Proprietary Ratio 50% 45%
Net Profit Ratio 25% 16%
Debt service coverage 6 times 4 times
Comment on the performance of X Ltd with reference to short-term

solvency, profitability, turn over, and long-term solvency.
OR
2b Critically evaluate the statement “high Current ratio is an indicator of
better position of the firm”. Also state in the following cases whether
the current ratio will increase or decrease.
a) Purchase of Machinery for cash
b) Payment of trade creditors
c) Cash collected from trade debtors
3a Explain the term Cash flow with reference to Cash Flow Statement. L3
CO4
OR
3b From the following information prepare comparative income statement
and comment on the firm’s performance.
Details 2020 2021
Sales 10,00000 800,000
Cost of Goods sold 600,000 400,000
Operating expenses 200,000 140,000
Non-operating 40,000 20,000
income
Interest on debt 20,000 15,000
Q.no Section B CO RBTL
Answer the following questions (Internal choice-based questions).
Each question carries 10 marks. Total Marks 2x10=20
4a The expenses for production of 5,000 units of product X in a factory

are given below. Currently the factory is working at 50% capacity level.
CO 4 L
Materials Rs.70 per unit
Labour Rs.25 per unit L4
Variable factory expenses Rs.20 per unit
Fixed factory overheads Rs. 10 per unit
( Rs.50,000)
Office Expenses Rs.15 per unit (out of which 40%
fixed)
Selling and distribution Rs.20 per unit (out of which 40%
fixed)
Total cost Rs.160 per unit
Prepare a flexible budget showing cost per unit at 75% capacity level
and 100% capacity level. Advice the company the feasible level of
operation to maximise profit if the selling price is Rs.250 per unit.
Fixed over heads remain constant at all levels.
OR
4b Explain the terms Budget and Budgetary control, and discuss the
benefits of Budgetary control in a business firm. List the important
Functional budgets prepared by business firms.
5a Prepare a cash budget for the quarter April to June from the following
information. It is expecting to have cash balance Rs.25000 on 1st April.
Month Sales (Rs.) Purchases (Rs.) Expenses (Rs.)

Februar 100000 50000 20000
y
March 120000 60000 25000
April 140000 80000 30000
May 160000 100000 40000
June 180000 120000 45000
Other information:
1) 20% of sales are on cash basis and credit period allowed to
customers is one month
2) Lag in payment of expenses one month
3) Credit period allowed by suppliers one month
4) In the month of June Income tax to be paid Rs.30000/-
5) In the month of May interest on Debentures Rs. 15000 to be paid
5b OR
Find out the missing figures in each of the following independent
situations.
Details A B C D E
Selling price ? 50 20 ? 30
per unit
Percentage of 60% ? 75% 75% ?
variable cost
No. of units 10000 4000 ? 6000 5000
sold
Contribution Rs.20000 Rs.80000 ? Rs.25000 Rs.50000
Fixed cost 12,000 ? 120,000 10,000 ?
Rs.
Profit/Loss ? 20000 30000 ? 15000
Rs.
Section -C
Compulsory question 15 Marks
6. Following is the Balance sheet of X Ltd. For the year 2020-21 and CO5 L3
2021-22.
Liabilities: 31/3/21 31/3/22
Equity share capital 300,000 350,000
Share premium ---- 30000
General reserve 45,000 65,000
Profit and loss 30,000 80,800
6% debentures ----- 70,000
Sundry creditors 85,000 90,700
Provision for taxation 22,500 40,500
Proposed dividend 30,000 35,000
TOTAL 5,125,00 7,62,000
Assets:
Land and building 230,000 390,000
Plant and machinery 85,400 140,000
Furniture 5500 6500
Stock 82,400 95,700
Sundry debtors 75,000 85,500
Bank balance 34,200 44,300
TOTAL 5,12,500 7,62,000
Additional information:
1) Depreciation written off during the year on building Rs.60,000,
plant and Machinery Rs.50,000 and Furniture Rs.1200
Prepare Cash flow Statement.

Revised Bloom’s Taxonomy (RBT) Levels :
L1 – Remembering L2 – Understanding L3 – Applying
L4 – Analyzing L5 – Evaluating L6 - Creating

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CHRIST (Deemed to be University), Bangalore – 560 029

School of Business and Management

Course Outcomes (COs): The students will able to

Q.NoAnswer the following questions (Internal choice-based questions). CO RBTL

Explain the following: a) P/V ratio b) Margin of safety c) Breakeven

Comment on the performance of X Ltd with reference to short-term

4a The expenses for production of 5,000 units of product X in a factory

Month Sales (Rs.) Purchases (Rs.) Expenses (Rs.)

Prepare Cash flow Statement.

L1 – Remembering L2 – Understanding L3 – Applying

L4 – Analyzing L5 – Evaluating L6 - Creating

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