M.Com DCM 6202 MANAGEMENET ACCOUNTING

Description

SESSION	JAN-FEB 2026
PROGRAM	MASTER OF COMMERCE (M.COM)
SEMESTER	II
COURSE CODE & NAME	DCM6202 MANAGEMENT ACCOUNTING

 

 

Assignment Set – 1

 

Q.1. Explain the differences between Management Accounting and Financial Accounting. (10 Marks)

Ans 1.

Management Accounting and Financial Accounting are two distinct fields of accounting which have different objectives, audience, and operational frameworks within an organisation. While both draw on the same financial data They differ significantly in the goals they pursue, their scope and scope, requirements for regulatory compliance, the way they are organized and their timing of report.

Purpose and Users

Financial Accounting is designed for the purpose of communicating financial information to

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Q2. The standard material required to produce 1,000 units of a product is:

• Material A: 500 kg @ ₹4 per kg
• Material B: 300 kg @ ₹6 per kg

During a particular period, the actual output was 1,200 units. The actual consumption and cost were:

• Material A: 650 kg @ ₹5 per kg
• Material B: 400 kg @ ₹5 per kg

Required:

1. Calculate Material Cost Variance (MCV)
2. Calculate Material Price Variance (MPV)
3. Calculate Material Usage Variance (MUV)

Verify the relationship:

Ans 2.

Theory: Material Variances

Materials variances are employed in standard costing to determine the variance between the standard (expected) material cost as well as the actual costs incurred for a given amount of output. Materials Cost Variance (MCV) is the sum of the amount that is the difference between standard cost to

 

Q.3.  A company manufactures a single product with the following details:

• Selling Price per unit = ₹50
• Variable Cost per unit = ₹30
• Fixed Costs = ₹2,00,000

Required:

1. Calculate the Contribution per unit
2. Calculate the P/V Ratio
3. Calculate the Break-Even Point (in units and in sales value)
4. Calculate the Profit if 12,000 units are sold

How many units must be sold to earn a profit of ₹1,00,000?

Ans 3.

Marginal Costing Concepts

Marginal costing is a method of costing where only variable costs are charged to cost units while fixed costs are considered expenses for the duration of time and are deducted against the contribution amount for the time they were incurred. It’s a great tool to make short-term decisions and profit analysis. Contribution is the amount that’s different between the price of selling and variable cost per unit and represents how much each sale is used to recover fixed cost which then generates profit. It is known as the Profit Volume (P/V) Ratio expresses contribution as a percentage of sales and indicates how well each revenue unit generates an income. The Break-Even

 

Assignment Set – 2

 

Q.4. Explain the objectives of financial statement analysis. (10 Marks)

Ans 4.

Financial statement analysis is the method of looking at and understanding the financial information provided in a company’s balance sheet, income statement as well as cash flow statements and notes to accounts to determine its financial health, potential, and performance. This transforms the raw financial data into valuable insights for various users. The analysis serves several

 

Q.5. From the following information of XYZ Ltd., calculate:

1. Current Ratio
2. Quick Ratio
3. Debt-Equity Ratio
4. Gross Profit Ratio
5. Net Profit Ratio

From below given Data:

• Current Assets = ₹4,00,000
• Inventory = ₹1,50,000
• Current Liabilities = ₹2,00,000
• Total Debt = ₹3,00,000
• Shareholders’ Equity = ₹5,00,000
• Net Sales = ₹10,00,000
• Cost of Goods Sold = ₹6,00,000
• Net Profit = ₹2,00,000

 

Ans 5.

Ratio Analysis

Ratio analysis is a quantitative technique that is used to analyze an organization’s financial performance through formulating meaningful relationships between financial statement items. Ratios for liquidity are a measure of the ability to pay short-term debts. The Current Ratio compares actual assets

 

 

Q.6. Describe the different levels of management reports. (10 Marks)

Ans 6.

Management reports are structured documents which give information to different levels of management for planning, decision-making, and management. The nature, frequency degree of information, and nature of the reports differ significantly based on the management level they are designed to serve. The three main levels of management with particular information requirements, are tactical (top management), tactical (middle management), and operational (lower