Management Accounting
Question Bank 1
QUESTION BANK
(TOTAL MARKS: 100)
Note : (1) Attempt any Ten questions.
(2) All questions carry equal marks.
1. Explain the term Accounting. What are the different streams of accounting
? How are they related to each other ?
2. Explain step-by-step process of Financial Accounting with the intention to
prepare the financial statements.
3. Write an essay on “Depreciation”.
4. What do you mean by Financial Statements ? What are the limitations of the
Financial Statements ? Give the standard format of the Financial Statement
and explain each item appearing in the Financial Statement.
5. What do you mean by Bank Reconciliation Statement ? Why is it prepared ?
Give a standard format of a Bank Reconciliation Statement.
6. What do you mean by Elements of Cost ? How the cost is classified into
various elements of cost. Draft a standard format of a cost sheet for a
machine tool manufacturing company. Make the necessary assumptions.
7. Explain step-by-step procedure of identifying the direct material cost with
the individual cost center. Give the formats of various documents which are
prepared in the process.
8. Explain step-by-step procedure of identifying the direct labour cost with the
individual cost center. Give the formats of various documents which are
prepared in the process.
9. Explain step-by-step procedure of identifying the overheads with the
individual cost center.
10. Explain the terms Marginal Cost and Marginal Costing. State the various
application areas of Marginal Costing for the managerial decision-making.
11. With the help of a Simple Break Even Chart and Contribution Break Even
Chart, explain the significance and method of calculation of the following
terms–
_ Contribution
_ Profit Volume Ratio
_ Break Even Point
_ Margin of Safety
_ Angle of Incidence
12. Explain the advantages and disadvantages of Standard Costing as a cost
control technique. How Standard Costing is related to Budgetary Control ?
13. What do you mean by Uniform Costing ? Explain the various areas covered
by Uniform Costing. Explain the prerequisites for the success of Uniform
Costing as a cost control technique.
14. Write short notes on any Three of the following –
_ Labour Turnover
_ Accounting for Idle Time
_ Under Absorption and Over Absorption of Overheads
_ Flexible Budget
_ Cash Budget
Note : Even if the Question Bank consists of only theory questions, in the final
examination you can expect problems as well.