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(i) Which one of the following statements is false?

Management accountant uses cost accounting tools and techniques for planning and decision making. Management accounting is mostly historical in its approach and it projects the past. Cost accounting system can be installed without management accounting. Management accounting focuses on wealth maximization.

(ii) According to DU-Pont Methodology, the parameter(s) that drive Return on Equity (ROE) is/are

Operating performance Asset usage performance Financial Leverage All of the above

(iii) Which one of the following Responsibility Centers, is an Organizational Unit whose manager is responsible for managing revenues and current expenses?

Investment Center Revenue Center Profit Center Cost of Expense Center

(iv) The Laplace Criterion is the feature of which of the following?

Deterministic Model Decision making under certainty Decision making under uncertainty Optimization

(v) Bon, a division of BANT Ltd. a manufacturing company, has total assets of ₹12,00,000 and an Operating Income of ₹3,00,000. What is the Division's Residual Income (RI) if the cost of capital is 15%?

₹1,80,000 ₹1,50,000 ₹1,20,000 ₹60,000

(vi) An employee of DOXIN Ltd. took 5 hours to complete the first unit job in the assembly line. Using a 80% incremental unit time learning model, the time to be taken to complete the second unit job will be

4 hours 3 hours 2 hours 5 hours

(vii) In the factory of DOSN Ltd., using Standard Costing System, the details of overhead expenditure for the month of May'24 are as under:

Type	FOH	VOH	Output
Standard	80,000	120,000	40,000
Actual	85,000	115,000	?

If Fixed overhead volume variance is ₹4,000 (Adv.), identify the Actual Output (in units)

38,000 units 41,000 units 42,000 units Insufficient information

(viii) FBT Ltd. is presently operating at 60% capacity and producing 600 units. The Cost structure at 60% Level of Activity is: Material ₹50 per unit, Labour ₹25 per unit, Direct expenses ₹5 per unit, Factory overheads ₹20,000 (60% variable) and Administration expenses ₹15,000 (60% fixed). What will be the Total Cost per unit for production at 80% capacity?

₹1,05,000 ₹131.25 ₹126.25 None of the above

(ix) SNG Ltd. is choosing which of three products P, Q and R to make and has calculated likely payoffs under three possible scenarios (A1, A2, or A3), giving the following payoff table:

Profit/Product	P	Q	R
A1	40	80	20
A2	80	100	150
A3	100	(20)	70

Using maximax, identify the product which would be chosen by the company.

Product P Product Q Product R None of the above

(x) A is defined as a budget continuously updated by adding a further accounting period when the earlier accounting period has expired.

Zero base budget Step-up budget Rolling budget Performance budget

(xi) In both fixed and variable costs are considered for product costing and inventory valuation.

Marginal Costing Relevant Costing Absorption Costing Activity Based Costing

(xii) M/s Unicorn Limited sold 200 units and 300 units of its product in 2023 and 2024 respectively. If total overhead for 2023 and 2024 is ₹10,000 and ₹12,000 respectively, the fixed overhead would be

₹6,000 ₹4,000 ₹8,000 ₹10,000

(xiii) If P/V Ratio is 20%, Selling price per unit is ₹50, Margin of safety is 2000 units and Fixed cost is ₹30,000, the actual sales quantity is

4,000 units 6,000 units 5,000 units 7,000 units

(xiv) A Limited produces 500 units of product in 7,500 hours against standard hours of 8,000. If standard rate per hour is ₹50, then labour efficiency variance will be ₹

₹25,000 (F) ₹25,000 (A) ₹40,000 (F) ₹50,000 (F)

(xv) Expected returns of two mutually exclusive projects are 15%. The S.D. of return of Project-1 is 20% while S.D. of return of Project-2 is 10%. The Coefficient of variation of Project-1 and Project-2 are

Project-1 = 0.75 and Project-2 = 0.90 Project-1 = 1.33 and Project-2 = 0.66 Project-1 = 1.43 and Project-2 = 0.86 Project-1 = 1.39 and Project-2 = 0.56

June 24 Management Accounting Paper