Management Accounting Suggestions, Hons 3rd Year Exam 2021, Management Department
Management Accounting Suggestions
Hons 3rd Year Exam 2021
Management Department
বিসমিল্লাহির রাহমানির রাহিম
Part A
1) Define management accounting.
Ans: The phase of accounting that provides the information to the managers for use in planning and controlling operations and decision making is called Management Accounting.
Or,
Ans. Management accounting is a process of which provides information to the internal management for decision making, planning, controlling and conducting day to day operation of the undertaking for maximizing profits or minimizing losses.
Or,
Ans: Management Accounting is the process of identification measurement, accumulation, analysis, preparation, interpretation and communication of information that assists executives in fulfilling organizational objectives.
2) What is relevant cost?
Ans: Relevant costs are expected future costs that differ under alternatives.
3) What is shut down cost?
Ans:
4) What is capital rationing?
Ans: The financial situation in which a firm has only a fixed number of taka available for capital expenditures, and numerous projects compete for these dollars.
5) What is overhead variance?
Ans: Overhead variance is the difference between budgeted overhead cost and actual overhead costs.
6) Elaborate ICMAB.
Ans : Institute of Cost and Management Accountants of Bangladesh.
7) What is master budget?
Ans: The master budget is a set of interrelated budget, that constitute a plan of action for a specified time period.
8) Write the formula of CM/Pv ratio.
Ans: Contribution margin ratio,
CM ratio = (Sales – Variable Cost) ÷ Sales
9) What types of organization makes use of standard costing?
Ans: The organizations those are relating to production use standard costing.
10) What is ABC costing?
Ans: Activity-based costing (ABC) is a costing methodology that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each.
Or,
Ans. Activity based costing refines a costing system by identifying individual activities as the fundamental cost objects.
11) What are the elements of cost?
And: Material, Labour and Overhead.
12) What is markup?
And: it is an amount by which price exceeds cost.
13) Define conversion cost?
Ans: Conversion cost is the combined from of direct labor and manufacturing overhead.
14) What is prime cost?
Ans : Prime cost is the combined form of direct material, direct labor and direct expenses.
15) What is cost statement?
Ans: The statement that shows all the costs related to cost of production is called cost statement.
16) What is flexible budget?
Ans: Flexible budget is the budget at the actual Capacity level. Because flexible budget is dynamic, it is commonly used by companies.
17) What do you mean by budget?
Ans. Budget is a plan showing a company’s objectives and how management intends to acquire and use resource to attain those objectives.
Or,
Ans. Budget is a quantitative expression about a target plan for acquiring and using resources over a specified time period.
18) What is sunk cost?
Ans: Sunk cost is the cost that has already been incurred and that cannot be changed by any decision made now or in the future.
19) What is IRR?
Ans: IRR is the discount rate that equates the present value of cash inflows with the present value of cash outflows.
20) Which costing method is also known as ‘full costing”?
Ans: Absorption costing is also known as full costing..
21) What is manufacturing overhead?
Ans. All costs associated with the manufacturing process expect direct materials and direct labour.
22) Elaborate ‘GAAP’.
Ans: Generally Accepted Accounting Principles.
23) What do you mean by margin of safety?
Ans: The excess of budgeted (or actual) sales over the break-even volume is margin of safety.
24) Define marginal cost.
Ans. The additional cost resulting from producing and selling one additional unit is called marginal cost.
25) What is cost behavior?
Ans: Cost behavior is the way in which a cost reacts or responds to changes in the level of business activity.
26) In which case, more net profit arise in variable?
Ans:
27) Define relevant range.
Ans: The relevant range is the range of activity in which a company expects to operate during a year.
28) What is unavoidable cost?
Ans: Unavoidable cost is that cost which will not be eliminated with the discontinuation of a product or department.
29) What is material price variance?
Ans: It refers to that portion of material cost variance which is due to the different between the standard prices specified and the actual price for direct materials used
30) What is meant by value chain?
Ans: Value chain is the set of business functions that added value to the products or services of an organizations.
31) What do you mean by variance analysis?
Ans. Variance analysis is the process of computing the amount of variance and isolating the causes of variance between actual and standard.
32) Which costing method is useful in external reporting?
Ans: Absorption costing is used for external reporting.
33) What is standard cost?
Ans. Standard cost is a predetermined cost to be used for measuring the efficiency of the actual performance.
32) What is activity based budget?
Ans: Activity-based budget is the budget for the costs of individual activities. In activity-based budgeting, all costs are allocated to cost centers and then are assigned to activities.
33) What is capital budgeting?
Ans: The process of evaluating and selecting long-term investments that are insistent with the firm’s goal of maximizing owner wealth.
34) Give two examples of semi-variable cost.
Ans: Telephone expenses (Fixed or Land phone), Light and Electricity expenses.
35) What is fixed cost?
Ans: The cost that remains constant ‘in total’ in all levels of activity is called fixed cost.
36) Define NPV.
Ans: Total present value of cash inflow minus total present value of cash outflow.
37) What is capital Rationing?
Ans. The Capital Rationing refers to the choice of investment proposals under financial constraints in terms of a given size of capital.
38) What do you mean by range?
Ans. Difference between highest and lowest value.
39) What do you mean by labour cost variance?
Ans. Labour cost variance as the difference between standard direct labour cost and actual direct labour cost incurred for the production achieved.
40) A product will have the same impact on net income as a 10% increase in the variable expenses. Do you agree? Why or why not?
Ans: Yes, because fixed cots constant here. Differentiate between a product cost and 10% decrease in the selling price of a period cost.
41) What is best cost structure?
Ans: A Cost structure that gives lowest risk and to achieve maximum profit is called best cost structure.
42) Who is Management Accountant?
Ans:
43) Write two features associated with variable costing.
Ans: There are two variable cost:
(i) Variable cost in total amount as the activity level changes.
(ii) Unit variable cost is fixed
44) What is contribution margin ratio?
Ans: The contribution margin per unit expressed as a percentage of selling price per unit.
Or,
Ans: If contribution margin per unit is expressed as a percentage of selling price per unit, it iscalled profit value ratio or contribution margin ratio.
45) What is differential cost?
Ans: Any cost that differs between alternative in a decision making is called differential cost.
46) What is product cost?
Ans: Product costs include all costs involved in acquiring or making a product.
47) What is variance?
Ans: Actual performance deviations from plan is called variance.
Or,
Variance means the difference between actual and standard.
48) What is Operating budget?
Ana. Operating budget is a major part of master budget that focuses on the income statement and its supporting schedules.
49) What is Joint Products?
Ana. Joint products are multiple products generated by a single production process at a same time.
50) What is Absorption Costing?
Ans: Absorption costing is a method of inventory costing in which all variable and fixed manufacturing costs are charged as inventoriable cost.
51) What is the elaboration of CVP?
Ans. Cost volume profit.
52. Define sales budget.
Ans. Sales budget is a schedule showing target sales for specific period in both amount (Tk.) and quantities (units)
53. What is Budget Center?
Ans. Budget centre is the segment of the enterprise in respect of which budget is first prepared.
54. What is zero based budget?
Ans. Zero based budget is a method of budgeting which managers are required to justify all costs as it the program involved were being proposed for the first time.
Group B
1. Discuss the objectives of preparing cost sheet.
2. Discuss the methods for determining standards for standard costing
3. How an investment proposal is evaluated account to different discounted cash flow techniques?
4. Show the difference between variable costing and absorption costing.
5. “All future costs are relevant in decision making-Do you agree? Why?
6. Discuss the objectives of Management Accounting.
7. Write down the differences between cost accounting and Management Accounting.
8. Briefly discuss the planning and control for product life cycle.
9. Show the differences between product cost and period cost.
10. Show the difference between fixed and variable cost.
11. Discuss the importance of ethics in business.
12. State the assumptions of cost volume profit analysis.
13. Classify cost on the basis of significance and behaviour.
14. Why do students of Management need to study management accounting.
15. What are the purpose of cost classification.
16. What are the basic differences between budget and forecast.
17. Show the differences between differential cost and marginal cost.
18. Show the differences between expenditure and expenses.
Group C
1. a) How does management accounting assist the management of a business concern?
(b) Discuss the techniques of Management Accounting.
2.a) Discuss the role of management accounting in the decision making process in the business. Briefly describe the prospect of management accounting profession in Bangladesh.
(b) What is meant by product life cycle management?
3. a) Discuss the steps involved in standard costing.
(b) “Variance analysis is an integral part of standard cost accounting”-Explain
Math:
Chapter 2: Cost Concept and Classification***
Part B: Acc- 2019 (6), 2017 (2) Mgt- 2019 (5), 2018 (6)***, 2016 (7), 2015 (7),
Part C: Mgt- 2019 (11), 2018 (11), 2017 (11)***, 2016 (11), 2013 (10), Acc-2016 (11)***, 2014 (10)
Chapter 3: Absorption and Variable Costing ***
Part B: Mgt- 2014(2), 2013 (8), 2017(7) Acc- 2016 (6)
Part C: Mgt- 2016 (12), 2018 (12)***, 2017 (14) (b) Acc-2015 (12), 2017 (13), 2018 (12)***
Chapter 4: Cost Volume Profit Relationships***
Part B: Mgt- 2016 (9), 2017(8), 2018 (8), 2019 (4), 2013 (4), Acc-2019 (5), 2017 (4), 2018 (8)
Part C: Mgt- 2017 (12)***, 2018 (17) 2019 (14), Acc- 2015 (13), 2016 (13)***, 2018 (13), Fin- 2016 (13)
Chapter 5: Relevant Costs for Decision Making
Part B: Mgt- 2019 (6), Acc- 2017 (9)
Part C: 2015 (14) Old, Acc- 2018 (14), 2017 (14), 2016 (14)
Chapter 6: Budget and Budgetary Control
Capital Budgeting:***
Part B: Mgt-2018 (7), 2014 (4), Acc- 2019 (7), 2017 (8), 2016 (8)***
Part C: Mgt-2019 (16), 2018 (14)***, 2017 (17), 2016 (13), 2014 (14), 2012 (12)***
Acc- 2019 (16),
Cash Budget:
Part B: 2014 (6)***, Acc-
Part C: (তেমন Important নয় )
Mgt-2018 (15), 2016 (15)
Others:
Part B: Acc-2020 (9), 2018 (9),
Chapter 7: Flexible Budget ***
Part B: Acc-2020 (6)
Part C: Mgt- 2019 (15), 2018 (13) 2017 (13), 2016 (14), Acc- 2019 (14), 2018 (16) ***, 2016 (12)***, 2017 (15), 2014 (12) *** Old.
Chapter 8: Standard Costing ***
Part B: Mgt- 2017 (09)*** Acc-2019 (8), 2016 (17)***
Part C: Mgt- 2016 (17), 2017 (15), 2019 (17)***, Acc-2018 (17), 2017 (16)***
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