Time: Three hoursMaximum: 80 marks PART A - [8 x 5 =

Marks 40]Answer any EIGHT questions.1. What is the

scope of Management Accounting? 2. What are the
limitations of financial statements? 3. Discuss Dupont
chart. 4. What are the applications of funds? 5. What are
the objectives of capital expenditure control? 6. What is
zero base budgeting? 7. Distinguish between standard
costing and budgetary control. 8. What are the main
features of job order costing? 9. Distinguish between job
costing and process costing. 10. What are the limitations of
break-even charts? 11. Explain the advantages of marginal
costing. 12. What are the elements of MIS? PART B - [4 x
10 = Marks 40]Answer any FOUR questions. 13. "Financial
statements reflect a combination of recorded facts,
accounting conventions, and personal judgement". Discuss
14. What is meant by ratio analysis? Discuss the objects
and limitations. 15. Explain the role of reporting system in
a company? Bring out the kinds of reports prepared for
different level of management. 16. There are two similar
factories under the same management. The management
desires to merge these two plants. The following particulars
are available. Plant A Plant BCapacity Operation 100%
50%Sales Rs. 3,00,000 1,00,000Variable cost Rs. 2,20,000
75,000Fixed cost Rs. 40,000 20,000 You are required to
calculate :(a) What would be the capacity of the merged
plant to be operated for the purpose of break-even? (b)
What would be the profitability on working at 75% of the
merged capacity? 17. The ABC Company Ltd., is
considering the purchase of a new machine. Two
alternative machines (X and Y) have been suggested each
costing Rs. 2,00,000. Earnings after taxation are expected
to be as follows Year Cash FlowsMachine X Machine YRs.
Rs.1 20,000 60,0002 60,000 80,0003 80,000 1,00,0004
1,20,000 60,0005 80,000 40,000The company has a target
of return on capital of 10% and on this basis you are
required to compare the profitability of the machines and
state which alternative you consider financially preferable.
18. From the following information prepare a schedule of

his basis you are required to compare the profitability of the machines and state which alter
changes in working capital and funds flow statement for
Konark Ltd., for the year ended 31.3.2003. Balance Sheet
Liabilities As at As at Assets As at As at31-3.2003
31.3.2002 31.3.2003 31.3.2002Share Fixedcapital 5,00,000
4,00,000 Assets 3,10,000 3,00,000Reserve and Investments
15,000 -Surplus 1,50,000 50,000 Cash andSecured loans
3,50,000 4,00,000 Bank 25,000 12,500Current

ges in working capital and funds flow statement for Konark Ltd., for the year ended 31.3.200
ClosingLiabilities 5,00,000 6,00,000 stock 7,50,000
7,87,500Sundrydebtors 4,00,000 3,50,00015,00,000
14,50,000 15,00,00014,50,000(a) The net profit for the year
after adjustment in respect of provisions for dividends,
taxation was Rs. 1,00,000. (b) There was additions to fixed
assets during the year amounting to Rs. 40,000 and
depreciation for the year was Rs. 30,000.