Code No.

: 420555 OR
IV B.Tech II-Semester Examinations April 2003
COST AND FINANACIAL MANAGEMENT
(Computer Science and Engineering)
Time: 3 Hours Max. Marks: 70
Answer any five questions
All questions carry equal marks
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1. What are liquidity ratios? How are they useful for financial analysis?

2. What is a budget? What are the steps in preparation of financial budget for a
company? How does it serve as a control mechanism?

3. Prepare a sources and uses of funds statement with funds defined as working
capital from the following changes in the balance sheet and income figures during
two financial periods:
Rs.
Profit Before Tax 10,20,000
Cash -30,000
Receivables +4,05,000
Inventory +2,25,000
Fixed assets +13,50,000
Depreciation +2,55,000
Accounts payable +3,60,000
Outstanding expenses 1,05,000
Debentures +2,10,000

4. Draw a break even chart from the following data and find out the break even
point. Give break even output in units and sales in Rs.
Selling price per unit Rs. 2-50
Variable cost price Rs. 2-00
Total fixed cost Rs. 20000

5.a) What is the difference between allocation and apportionment of overhead.

b) From the following calculate works cost:
Material Rs. 64,500
Direct wages Rs. 70,000
Direct Expenses Rs. 10,000
Factory overhead Rs. 29,500
Opening stock of
work in progress Rs. 13,000 and
Closing stock of
W.I.P Rs. 34.500
(Contd…2)
Code No.420555 -2- OR

6. Compare and contrast historical costing vs. marginal costing.

7. The standard material required to manufacture one unit of product X is 10 Kg and

the standard price per Kg. of material is Rs. 2.50/-. The cost accounting records
however reveal that 11,500 Kg of materials costing Rs. 27,600 were used for
manufacturing 1000 units of products X. Calculate material price, material usage
and material cost variances.

8. Write short notes on any THREE:

(i) Capital structure
(ii) Cost control
(iii) Uses of marginal costing
(iv) Variance analysis.

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