Management Accounting question, Hons 3rd Year Exam 2021, Management Department

Management Accounting question, Hons 3rd Year Exam 2021, Management Department 

National University


[According to the New Syllab]

Subject Code: 232613

Management Accounting (In English)


Time-4 hours

Full marks-80


[N.B Antwer different parts of a question of each group consecutively]


Group A

(Answer any ten questions)



a) What is Management Accounting?




b) Elaborate; TQM, CAT.


Ans: Total Quality Management.


২০২১ সালের অনার্স তৃতীয় বর্ষ পরীক্ষার ব্যবস্থাপনা বিভাগের কোম্পানি আইন প্রশ্ন


c)Write a formula of BEP in taka.




d) What do you mean by decision making?



e) Define differential cost



২০২১ সালের অনার্স তৃতীয় বর্ষ পরীক্ষার ব্যবস্থাপনা বিভাগের বিমা ও ঝুঁকি ব্যবস্থাপনা প্রশ্ন


f) What is sunk cost?



g) Define standard cost.



h) What is product cost?



Management Accounting Suggestions, Hons 3rd Year Exam 2022(Will be held-2024), Management Department


I) What is meant by contribution margin?



j) What is budget cycle?



k) What is master budget?



l) What is meant by IRR



Group B


(Answer any five questions)



2.  Differentiate between Management Accounting and Cost Accounting.


3. What are the limitations of cost-volume-profit analysis?


4. From the following information of Evan Fabrics, prepare a Cost Sheet:

Direct material 1,00,000 Tk.

Direct labor 80% of material.

Factory cost 50% of labor

Office and administrative cost 75 % of factory cost.

Marketing and selling cost 50 % of office and administrative cost.

Profit 25% of sale.


5.  Jamuna Corporation produced 24,000 units (normal capacity) of product during the year 2022.

The company sold 20,000 units @ Tk. 22 per unit.

Cost of production was as follows:

Direct material       Tk. 60,000

Direct labor             Tk. 60,000


Factory Overhead:

Variable              Tk. 1,20,000

Fixed                    Tk. 96,000

Marketing and administrative expenses for the year Tk. 70,000 all are fixed. Prepare an income statement under direct costing.


6. Using the following information prepare a statement of Quoted/Tender price:

Percentage of factory overhead on labor-25%

Percentage of office overhead on factory cost-20%

Percentage of profit on sales -25%

Direct material 15,000 and direct labor Tk. 7,000.


7. ABC Ltd. is a manufacturing concern which requires 2,000 units of Part-B to complete its finished products. ABC produces Part-B in its own factory. Relevant cost data are as follows:

Details             Per unit      Cost for 2,000                                  Taka             units Taka

Raw material           20               40,000

Direct labor              80             1,60,000

Variable overhead  50              1,00,000

Fixed overhead       50               1,00,000

A supplier offers to sell Part-B to ABC Ltd. at a cost of Tk. 160 per unit. If the offer is accepted, fixed cost Tk. 35 per unit can be saved

Should the offer be accepted?


8. Initial cost of a project is Tk. 80,000, is expected life is 5 years. Discount rate is 10%. Cash inflows are given below:

Year                    Amount (Tk.)

1                             24,000

2                             30,000

3                             26,000

4                             20,000

5                             28,000

Determine the discounted payback period.


9. Figures of profit and sales taken from XYZ Co.

Year       Sales in taka      Profit in taka

2015            20,000                  1,000

2016            30,000                  3,000


a) PV Ratio

b) BEP

c) Profit when sales Tk. 40,000.

d) Sales to obtain profit Tk. 5,000.


Group C


(Answer any five questions )



10.  a) Discuss the role of management accounting.

b) Describe in brief the difference between variable costing and absorption costing


(1) Sky Compute is comparing its present absorption costing practice with direct costing methods. An examination of its cord produced the following information:

Budged production          40,000 units

Budgeted fixed factory overhead Tk. 80,000

Fixed marketing and administrative Expenses Tk. 20,000.

Sales price per unit Tk. 12

Standard variable manufacturing cost per unit Tk. 5

Variable marketing expenses per unit Tk. 1

For the year the following are available :


Actual production          32,000 units

Actual sales                     29,000 units

Opening finished goods  1,000 units

Unfavourable variance from standard variable cost           Tk. 5,000


(a) Income statement under direct costing, and

(b) Income statement under absorption costing.


12. The following data is extracted from the books of XYZ Company:

Annual sales                   Tk. 2,20,000/-

Margin of safety ratio-            35%

P/V ratio                                     45%

You are to calculate:

(a) BEP sales in Tk.

(b) Margin of safety in Tk.

(c) Annual profit

(d) Sales required to earn profit Tk. 40,000

(e) Profit on sale Tk. 1,20,000.


13. (a) What do you mean by budget and budgetary control?


(b) Describe the essentials of a good budgetary control system.


14. The expenses budget for production of 10,000 units in a certain factory are stated below:

Details                          Unit Cost (Tk.)

Raw materials                       80

Direct labor                            30

Variable overheads              20

Fixed overheads (Tk. 1,00,000) 10

Variable expenses (Direct)    5

Selling expenses (10% fixed) 14

Distribution expenses (80% variable) 8

Administrative expenses(Tk. 50,000)  5

Total cost per unit                  172


Prepare a flexible budget for the production of 6,000 units, 8,000 units and 12,000 units.


15. A company has a capacity of producing 1,00,000 units of a product in a month. The sal reports that the following schedule of sale price is possible:


Volume of production  Selling price per                                                     unit (Tk.)

60%                                           0.90

70%                                           0.80

80%                                           0.75

90%                                           0.67

100%                                         0.61

The variable cost of manufacture at each level is Tk. 0-15 per unit and fixed cost Tk. 40,



(i) Prepare a statement showing incremental revenue and differential cost at each stage.

(ii) At which volume of production will the profit be maximum? and

iii) A foreign buyer offers to purchase the balance capacity over the maximum pro price of Tk. 0-50 per unit. Will you advise to accept the offer?


16. Calculate the relevant variances from the following information:


Budgeted details:


Material   : 10 kgs per unit @ Tk. 2 per kg.

Labour     : 15,000 hours @@ Tk. 3 per hour

Fixed overhead      : Tk. 12000

Output (in units)    : 2000


Actual details:

Material   :  9 kgs per unit @ Tk. 2.40 per kg.

Labour      :  14,000 hours @ Tk. 2.95 per hour

Fixed overhead Tk. 11,130 and output = 1800 units


17. The standard mix for producing 8,000 bottles of a product F is:


Material A: 1,000 litters @ 10Tk.

Material B: 2,000 litters @ 40 Tk.


During June, 10,000 bottles of the product F were produced from an input of:

Material A: 1,500 litters @ 11 Tk.

Material B: 3,300 litters @ 37 Tk.



Compute the material price variance, material mix variance, material usage variance and material yield variance.