Managerial Accounting

BBA 2nd Semester

Managerial Accounting (BBA 126)

Short Answer type questions (5 marks each)

1.  Distinguish between cash flow and fund flow statement.

2.  What is trend analysis?

3.  What is leverage ratio?

4.  What is capital gearing?

5.  What is Acid test ratio?

6.  Discuss Du-Pont chart.

7.  What are operating activities?

8.  What is meant by the term ‘cash flows’?  

9.  How costs can be classified in terms of their behaviour?

10.  Write short notes on

a.       Owner’s equity

b.      Contribution

c.       Margin of safety

d.      Sunk costs

e.       Opportunity costs

f.       Cost Centre

g.       Cost Unit

h.      Cost Sheet

i.        Break-even point

j.        Cost control v/s Cost reduction.

Long Answer type questions (15 marks each)

1.  Discuss in detail the functions of management accounting. Explain the nature and scope of management accounting.

2.  How does management accounting differ from financial accounting? What are the limitations of management accounting?

3.  How do management accounting, financial accounting and cost accounting differ from each other?

4.  What do you understand by financial statements? Discuss the objectives and limitations of financial statements in detail.

5.  Briefly discuss the types of financial statements. How far the financial statements are useful to the interested parties?  

6.  What do you understand by financial statement analysis? Discuss in brief the various methods/techniques of financial statement analysis.

7.  Distinguish between comparative and common size balance sheets.

8.  Discuss advantages and limitations of ratio analysis in detail.

9.  What is the use of fund flow statement? How it is prepared?

10.  What is the use of cash flow statement? Discuss the procedure to prepare it.

11.  Discuss how semi-variable costs can be segregated?

12.  What is absorption costing? Discuss its advantages and limitations.

13.  Discuss the advantages and limitations of marginal costing in detail.

14.  What is meant by CVP analysis? Discuss in detail the techniques/elements of CVP analysis.

15. What do you understand by differential costing? State the major applications of differential costing.