Management Accounting Suggestions Hons 3rd Year Exam – 2021
বিসমিল্লাহির রাহমানির রাহীম
1. Elaborate “ICMAB”.
Ans: Institute of Cost and Management Accountants of Bangladesh.
2. What do you mean by Ethics?
Ana. Ethics deal with human conduct in relation to what is normally good and bad, right and wrong. To determine Whether a decision is good or bad. The decision making must compare his/her options with standard of perfection.
3. What is Sunk Cost?
Ans A sunk cost is a cost that has already been incurred and that can not be changed by any future decision.
4. Wha is Opportunity Cost?
Ans: Opportunity cost is the potential benefit that is given up when one alternative is selected over another.
5. What is Conversion Cost?
Ans: Manufacturing overhead combined with direct labour is called conversion cost
6. 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.
7. What is Margin of Safety?
Ana. The excess of actual or budgeted sales over the break even volume of sales is called margin of safety.
8 What is Contribution Margin (CM)?
Ans: Contribution margin is the difference between sales revenue and total variable cost.
9. What is Joint Products?
Ans: Joint products are multiple products generated by a single production process at a same time.
10. What is Relevant Cost?
Ans: A relevant cost is a cost that differs in total between the alternatives in a division.
11. What is Operating budget?
Ans: Operating budget is a major part of master budget that focuses on the income statement and its supporting schedules.
12. What is Standard Costing?
Ans: Standard costing has been defined as a techniques which uses standards for cost and revenues for the purposes of control through variance analysis.
13. What is NPV?
Ans. Net present value is the difference between the present value of an investment project’s cash inflows and the present value of its cash outflows
14. What is semi-variable cost?
Ans. For a production some expenses are constant but some expenses vary proportionately by changing the level of activity. This type of cost is semi-variable cost.
15. Define cost and expense.
Ans. Cost: Cost is the expenditure of funds or use of property to acquire or produce a product or service.
Expenses: Expenses are the part of cost that have been consumed in a particular period of time.
16. What is the elaboration of CVP?
Ans. CVP- Cost-volume-profit.
17. How contribution margin is derived?
Ans. Contribution margin is derived from the amount remaining from sales revenue after variable expenses have been deducted.
18. What is JIT?
Ans. Just-in-Time. A philosophy to eliminate waste by reduction the time products spend in the production process and eliminating time products spend on activities that do not add value.
19. What is markup?
Ans. Markup is the amount by which price exceeds cost.
20. What is high low method?
Ans. High low method is a technique used to divide a mixed cost into its variable and fixed components under which an estimated variable cost rate is calculate first using the highest and lowest activity levels and mixed costs associated with them.
21. What are the elemetnts of prime cost?
Ans. The elements of prime cost are materials, labour and other direct expenses,
22. What is sales budget?
Ans. Sales budget is a schedule showing target sales for specific period in both amount (Tk.) and quantities (units).
23. What is management consulting?
Ans. An area of public accounting involving financial planning contral and the development of accounting systems is called management consulting.
24. What is inventoriable cost?
Ans. Because product costs are initially assigned to inventories, they are also known inventorial costs.
25. What is traceable fixed cost?
Ans. A fixed cost is termed as traceable fixed cost if is tried to a specific segment.
26. What is activity cost pool?
Ans. We can distribute cost among the cost objects by some how or technique. To allocate the indirect cost by some way.
27. What is break-even chart?
Ans. When the relationships among revenues, cost profit and volume of and organization presented in a graphic form it is called CVP Graph.
28. What is shutdown cost?
Ans. The cost that can not be avoided after stopping the production of organization with budget.
29. 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.
30. What is financial budget?
Ans. Financial budget is the part of master budget that focuses on the effects that operating budget and other plans will have on cash.
31. What is budget centre?
Ans. Budget centre is the segment of the enterprise in respect of which budget is first prepared.
32. What is idle time variance?
Ans. Idle time variance is that portion of labour efficiency which arise from abnormal circumstances like strike, lock out, power failure, idle time variance is always unfavora variance.
33. What is budget variance?
Ans. By applying fixed cost as constant expenses budget is prepared. But in work situation, level of activity and market price of cost clement change the expenditure st Thus budget cost and actual cost are differed. This difference creates budget
34. What is master budget?
Ans: The master budget is a detailed and comprehensive analysis of specific period. If summarizes all the planned activities of an organization – sales, production, distribution and finance. It also quantifies targets for sales, purchases production, net income cash position and any other objective that management specifies.
35. What is budgetary control?
Ans: Budgetary control is a system of compare of actual activities of organization with budgets.
36) What is Activity Based Management?
Ans: Activity-Based Management (ABM) is a method of identifying and evaluating activities that a business performs using activity-based costing to carry out a value chain analysis of a re-engineering initiative to improve strategic and operational decisions is an organization.
37. What is cost statement?
Ans. The statement that shows all the costs related to cost of production is called cost statement.
38. Define BEP.
Ans. The Break even point is defined as the volume of activity at which total revenue equals to total cost. There is no profit or no loss.
39. What is cost behaviour?
Ans. Cost behavior is the way in which a cost reacts or responds to changes in the level of business activity.
40. What is manufacturing overhead?
Ans. Costs of manufacturing except direct materials and direct labour is calledh manufacturing overhead.
41. What is unavoidable cost?
Ans. Unavalidable cost is that cost which will not be eliminated with the discontinuation of a product or department.
42. What is IRR?
Ans. The internal rate of return is the discount rate of which the present value of expected cash inflows from a project is equal to the present value of its expected cash outflows.
43. Define marginal cost.
Ans. The cost associated with one additional unit of production or use, also called marginal cost.
44. What is working capital?
Ans. Working capital may be defined as the proportion of total capital of a business which is employed in short term or current operations.
45. Which costing method is also known as “full costing”?
Ans. Absorption costion is known as full costing.
46. Write down the formula of contribution margin ratio.
Ans. Contribution margin ratio = (Total Contribution margin ÷ Total Sales) x100.
47. 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.
48. What do you mean by budget?
Ans. Budget is a quantitative expression about a target plan for acquiring and resources over a specified time period.
49. What do you mean by relevant range?
Ans. The relevant range is the range of activity (production or sales) over which these relationships are valid. The production decision management is made in this range.
50. What type of organization make use of standard costing?
51. What do you mean by labour cost variance?
Ans. The difference between standard labor cost and actual labor cost is called labor cost variance.
1. Discuss the importance of Ethics in business.
2. What factors will you consider at the time of “Make or Buy” decision?
3. So the difference between fixed and variable cost.
4. . Describe the reasons for difference in net income between variable costing and absorption costing.
5. What are the assumptions of cost volume profit analysis?
6. Discuss the components of a master budget.
6. Distinguish between budget and standard.
7. What are the differences between budget and budgetary control.
8. What are the advantages/merits and limitations of standard costing.
9. What are the difference between Management Accounting and financial accounting.
10. Distinguish between budget and forecast.
11. Discuss the advantages of flexible budget.
12. Explain the different elements of cost.
13. What are the different between fixed budget and flexible budget.
14. How does cost volume profit analysis help in management decision making.
15. How an investment proposal is evaluated according to different discounted cash flow techniques.
16. Distinguish between differential cost and marginal cost.
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:Acc-2015 (12), 2017 (13)***, 2018 (12)
Mgt- 2016 (12), 2018 (12)***, 2017 (14) (b)
Chapter 4: Activity-Based Costing
Chapter 5: 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 6: 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 7: Budget and Budgetary Control
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),
Part B: 2014 (6)***, Acc-
Mgt-2018 (15), 2016 (15)
Part B: Acc-2020 (9), 2018 (9),
Chapter 8: Flexible Budget ***
Part C: Acc- 2019 (14), 2018 (16) ***, 2016 (12), 2017 (15)***, Mgt- 2019 (15)***, 2017 (13)***, 2016 (14),
Chapter 9: Standard Costing ***
Part B: Mgt- 2017 (09)*** Acc-2019 (8), 2016 (17)***
Part C: Acc- 2019 (15), 2018 (17)***, 2017 (16)***, 2014 (17), Mgt- 2016 (17)
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