Management Accounting Important Questions 2025 [Gauhati University BCom 5th Sem. Accounting Major]

In this post, we have provided Gauhati University BCom 5th Semester NEP (Major – Accounting) Management Accounting Important Questions for upcoming exams. These questions cover all major units of the syllabus, including budgeting, marginal costing, standard costing, variance analysis, responsibility accounting, and management reporting, ensuring complete and effective exam preparation.

GAUHATI UNIVERSITY BCOM 5TH SEMESTER

(MAJOR – ACCOUNTING) NEP FYUGP 

MANAGEMENT ACCOUNTING 
MOST IMPORTANT QUESTION 100%

UNIT 1: INTRODUCTION TO MANAGEMENT ACCOUNTING

Topics: Meaning, Objectives, Nature & Scope of Management Accounting; Difference between Cost Accounting & Management Accounting; Application of Cost Concepts in Decision-Making; Cost Control & Cost Reduction; Cost Management.

2-Mark Questions 

1. Define Management Accounting. (GU BCom: 2012, 2013, 2014, 2018, 2022, 2024)

2. State two objectives of Management Accounting. (GU BCom: 2013, 2017, 2019)

3. Mention two characteristics/nature of Management Accounting. (GU BCom: 2014, 2016, 2017)

4. Give two distinctions between Cost Accounting and Management Accounting.

(GU BCom: 2012, 2013)

5. What is meant by budget? (GU BCom: 2012, 2014, 2024)

6. What is variance (in standard costing)? (GU BCom: 2012, 2016)

7. Mention one limitation of Management Accounting. (GU BCom: 2019, 2022)

8. State one application of cost concepts in decision-making. (GU BCom: 2014)

9. State the meaning of cost control. (GU BCom: 2013)

10. State the meaning of cost reduction. (GU BCom: 2013)

11. What is cost management? (GU BCom: 2018)

12. What is the difference between standard cost and actual cost? (GU BCom: 2016)

13. State two uses of management accounting information. (GU BCom: 2017)

5-Mark Questions

1. Explain the nature (or characteristics) of Management Accounting. (GU BCom: 2013, 2014, 2016)

2. Briefly explain the scope of Management Accounting. (GU BCom: 2013, 2019)

3. State the objectives of Management Accounting. (GU BCom: 2014)

4. Write the distinctions between Cost Accounting and Management Accounting. (GU BCom: 2013, 2016)

5. Explain the role of a management accountant in a business enterprise. (GU BCom: 2023)

6. Describe any five requisites for a successful budgetary control system. (GU BCom: 2013, 2016)

7. Discuss the importance and need of Management Accounting. (GU BCom: 2022)

8. Write a brief note on comparative statements (used in decision-making). (GU BCom: 2022, 2024)

9. Explain the significance of return on capital employed (ROCE). (GU BCom: 2022)

10. Explain the concept of cost control and cost reduction. (GU BCom: 2016)

11. Write short notes on:

(a) Cost reduction

(b) Cost management

(GU BCom: 2017)

10-Mark Questions

1. “Management Accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and in the day-to-day operations.” Explain. (GU BCom: 2012, 2022)

2. Discuss the functions and role of Management Accounting in decision-making.

(GU BCom: 2013, 2016)

3. Explain cost control and cost reduction. Also discuss their advantages. (GU BCom: 2012, 2022)

4. Explain the tools and techniques of Management Accounting used for managerial decisions.

(GU BCom: 2013, 2014)

5. Describe the scope of Management Accounting and how it differs from Cost Accounting.

(GU BCom: 2014, 2018)

6. Explain the procedure of financial statement analysis and discuss its limitations. (GU BCom: 2022)

7. Discuss cost management and its importance in modern business. (GU BCom: 2018)

8. “Management Accounting is indispensable for effective management.” Discuss. (GU BCom: 2017)

9. Explain the application of cost concepts for managerial decision-making with examples. (GU BCom: 2015)

10. Write an essay on the nature, objectives, and importance of Management Accounting. (GU BCom: 2016)

UNIT 2: FINANCIAL STATEMENT ANALYSIS

Topics: Meaning & Objectives of Financial Statement Analysis; Techniques – Comparative Statements, Common-size Statements, Trend Analysis; Accounting Ratios – Meaning, Classification, Objectives, Advantages & Limitations; Activity Ratios, Liquidity Ratios, Solvency & Leverage Ratios, Profitability Ratios; Precautions in Ratio Analysis.

2-Mark Questions

1. Define Financial Statement Analysis. (GU BCom: 2013, 2016, 2022)

2. Mention two objectives of Financial Statement Analysis. (GU BCom: 2014, 2017, 2024)

3. Write the meaning of Accounting Ratio. (GU BCom: 2012, 2013)

4. State two advantages of Ratio Analysis. (GU BCom: 2013, 2014, 2022)

5. State two limitations of Ratio Analysis. (GU BCom: 2017, 2023)

6. What is the current ratio? (GU BCom: 2024)

7. What is liquid ratio / quick ratio? (GU BCom: 2022)

8. What is gross profit ratio? (GU BCom: 2022)

9. Financial statements are only ______ reports. (Fill in the blank) (GU BCom: 2022)

10. Debt-equity ratio is the relationship between outside funds and ______ funds.

(GU BCom: 2022)

11. Sale of fixed assets for cash will improve the current ratio. (True/False) (GU BCom: 2024)

12. Which ratio measures short-term liquidity? (GU BCom: 2024)

13. Mention two precautions to be taken while using ratios. (GU BCom: 2016)

5-Mark Questions

1. Write a brief note on comparative statements. (GU BCom: 2022, 2023, 2024)

2. Explain the significance of Return on Capital Employed (ROCE). (GU BCom: 2022)

3. Describe liquidity ratios used to measure the liquidity of a firm. (GU BCom: 2024)

4. State the advantages and limitations of Ratio Analysis (any five). (GU BCom: 2016, 2018)

5. Distinguish between Comparative Statement and Common-size Statement.

(GU BCom: 2024)

6. Explain briefly any five limitations of Financial Statement Analysis. (GU BCom: 2023)

7. Write notes on:

(a) Activity Ratios

(b) Profitability Ratios (GU BCom: 2017)

8. Explain the objectives of Financial Statement Analysis. (GU BCom: 2015, 2024)

10-Mark Questions

1. Explain the procedure of analysis and interpretation of financial statements. Also discuss limitations. (GU BCom: 2022)

2. Prepare a Comparative Statement (Practical) – Shiva India Ltd. (GU BCom: 2022)

3. “Ratio analysis is only a technique for making judgements and not a substitute for judgement.” Explain. (GU BCom: 2023)

4. How does Common-size Statement differ from Comparative Statement? Discuss with importance. (GU BCom: 2024)

5. Explain the different types (classification) of accounting ratios with suitable examples. (GU BCom: 2015)

6. Write an essay on the objectives, advantages, and limitations of Ratio Analysis.

(GU BCom: 2016)

7. Explain the uses and importance of Trend Analysis in financial decision-making. (GU BCom: 2014)

8. Discuss the precautions to be taken while interpreting ratios and financial statements. (GU BCom: 2013, 2018)

9. Explain the significance of liquidity, solvency, and profitability ratios in assessing business performance. (GU BCom: 2017)

10. Discuss the role of Financial Statement Analysis as a tool of management decision-making. (GU BCom: 2013)

UNIT 3: BUDGETARY CONTROL

Topics: Concept of Budget, Budgeting & Budgetary Control; Objectives, Merits & Limitations; Budget Administration; Functional Budgets; Cash Budget; Fixed & Flexible Budgets; Preparation of Cash Budget & Flexible Budget.

2-Mark Questions

1. What is a budget? (GU BCom: 2012, 2014, 2024)

2. Define budgetary control. (GU BCom: 2024)

3. Mention two objectives of budgetary control. (GU BCom: 2016)

4. Write two limitations of budgetary control. (GU BCom: 2022)

5. What is a cash budget? (GU BCom: 2022)

6. What is a fixed budget? (GU BCom: 2014)

7. What is a flexible budget? (GU BCom: 2014)

8. Mention two distinctions between fixed and flexible budget. (GU BCom: 2013, 2016)

9. ______ budget does not consider changes in activity level. (Fill in the blank)

(GU BCom: 2023)

10. ______ contains many information required for effective budgetary planning.

(GU BCom: 2023)

11. What do you mean by functional budget? (GU BCom: 2015)

12. What is budget administration? (GU BCom: 2017)

13. What is zero-based budgeting? (GU BCom: 2023)

5-Mark Questions

1. Mention any five requisites for a successful budgetary control system. (GU BCom: 2013, 2016, 2023)

2. State the objectives of budgetary control. (GU BCom: 2022)

3. Briefly explain the advantages of cash budget. (GU BCom: 2022)

4. Distinguish between fixed budget and flexible budget. (GU BCom: 2023)

5. Write a brief note on budgetary control. (GU BCom: 2014)

6. Write the importance of budgeting in managerial planning and control.

(GU BCom: 2015)

7. What do you mean by functional budgets? Explain their role briefly.

(GU BCom: 2017)

8. Explain the limitations of budgetary control.b(GU BCom: 2022)

10-Mark Questions

1. What is a budget? Explain the advantages of budgetary control. (GU BCom: 2022)

2. Zero-Based Budgeting – meaning, advantages, and limitations. (GU BCom: 2023)

3. Describe the limitations of financial accounting and point out how management accounting (including budgeting) helps to overcome them. (GU BCom: 2023) 

4. Explain the preparation process of functional budgets and their significance.

(GU BCom: 2016)

5. Discuss the essentials/steps for installation of a budgetary control system.

(GU BCom: 2016)

6. Explain fixed and flexible budgets and illustrate their features. (GU BCom: 2014, 2018)

7. Explain the role of budgeting as a tool for managerial planning and coordination. (GU BCom: 2015)

8. Explain budget administration and the responsibilities of the budget committee.

(GU BCom: 2017)

9. Discuss the merits and limitations of budgetary control with suitable examples.

(GU BCom: 2019)

UNIT 4: STANDARD COSTING & VARIANCE ANALYSIS

Topics: Meaning of Standard Cost & Standard Costing; Advantages, Limitations & Applications; Variance Analysis – Material, Labour, Overheads, Sales Variances; Disposition of Variances.

2-Mark Questions

1. State the meaning of Standard Costing. (GU BCom: 2022, 2024)

2. Standard cost is a ______ cost. (Fill in the blank) (GU BCom: 2022)

3. What is variance? (GU BCom: 2016)

4. What is material cost variance? (GU BCom: 2022)

5. What is material price variance? (GU BCom: 2023)

6. What is labour cost variance? (GU BCom: 2022)

7. Labour cost variance is the difference between standard cost of labour and ______ cost of labour. (GU BCom: 2022)

8. What is wage rate variance? (GU BCom: 2022)

9. What is labour efficiency variance? (GU BCom: 2022)

10. Write the significance of the term ‘variance’ in Standard Costing. (GU BCom: 2022)

11. Mention two limitations of Standard Costing. (GU BCom: 2024)

12. State any two advantages of Standard Costing. (GU BCom: 2017)

13. What is the purpose of variance analysis? (GU BCom: 2015)

5-Mark Questions 

1. Explain the possible causes of material price variance. (GU BCom: 2022)

2. Write a brief note on variance analysis and its importance. (GU BCom: 2023)

3. Explain labour cost variance. (GU BCom: 2024)

4. Explain material usage variance. (GU BCom: 2016)

5. Distinguish between Standard Cost and Actual Cost. (GU BCom: 2014)

6. Explain the advantages of Standard Costing. (GU BCom: 2015)

7. Write any five limitations of Standard Costing. (GU BCom: 2018)

8. Write short notes on: (GU BCom: 2022)

(a) Labour rate variance

(b) Labour efficiency variance

10-Mark Questions

1. Explain the meaning, advantages and limitations of Standard Costing. (GU BCom: 2014, 2018)

2. Explain variance analysis. Discuss the importance of material, labour and overhead variances. (GU BCom: 2017)

3. Discuss the limitations of Standard Costing. (GU BCom: 2022)

4. Write an essay on the applications of Standard Costing in managerial decision-making. (GU BCom: 2015)

5. Explain the steps involved in setting Standards and establishing a Standard Costing system. (GU BCom: 2022)

6. Discuss the disposition (treatment) of variances. (GU BCom: 2016)

7. “Standard Costing is an effective tool for cost control.” Explain. (GU BCom: 2013)

8. Explain overhead variances and their components. (GU BCom: 2014)

UNIT 5: MARGINAL COSTING

Topics: Absorption vs Variable Costing; Distinctive Features & Income Determination; Cost-Volume-Profit Analysis; P/V Ratio; Break-even Analysis (Algebraic & Graphic Methods); Angle of Incidence; Margin of Safety.

2-Mark Questions

1. What is marginal costing? (GU BCom: 2022)

2. Marginal costing is a technique of cost control. (True/False) (GU BCom: 2022)

3. Contribution is the difference between sales and ______ costs. (GU BCom: 2022)

4. What is P/V ratio? (GU BCom: 2023)

5. What is break-even point? (GU BCom: 2022, 2024)

6. At break-even point: (GU BCom: 2023)

(i) No profit no loss

(ii) Total revenue = total cost

(iii) Contribution = fixed cost

→ Correct option (All of the above)

7. What is margin of safety? (GU BCom: 2022, 2024)

8. What is angle of incidence? (GU BCom: 2023)

9. Break-even analysis in its narrower sense means ______. (GU BCom: 2023)

10. State any two characteristics of marginal costing. (GU BCom: 2024)

11. What is absorption costing? (GU BCom: 2016)

12. Distinguish between variable cost and fixed cost (any two points). (GU BCom: 2015)

5-Mark Questions

1. Write a brief note on Cost-Volume-Profit (CVP) Analysis. (GU BCom: 2022)

2. Explain the basic characteristics of marginal costing. (GU BCom: 2024)

3. Distinguish between Absorption Costing and Marginal Costing. (GU BCom: 2016)

4. Explain the importance of P/V ratio in managerial decisions. (GU BCom: 2015)

5. Write a brief note on margin of safety. (GU BCom: 2024)

6. Explain break-even analysis. (GU BCom: 2013, 2020)

7. Explain angle of incidence and its significance. (GU BCom: 2023)

8. State the assumptions underlying CVP analysis. (GU BCom: 2017)

9. Explain the uses of marginal costing in decision-making. (GU BCom: 2018)

10-Mark Questions

1. “Marginal costing technique is a valuable aid to management in taking many managerial decisions.” Explain. (GU BCom: 2023)

2. Assuming cost structure remains the same, calculate P/V ratio and fixed cost (Sales & Profit for periods I & II). (GU BCom: 2022)

3. Compute BEP, profit at given sales, and required sales for target profit. (GU BCom: 2023)

4. Explain in detail the advantages of marginal costing and CVP analysis. (GU BCom: 2022)

5. Prepare a CVP statement and explain graphical break-even chart. (GU BCom: 2015)

6. Discuss absorption vs marginal costing and show income determination under both methods.

(GU BCom: 2016)

7. Explain margin of safety, P/V ratio, break-even point and their interrelationships. (GU BCom: 2018)

8. Discuss the limitations of marginal costing. (GU BCom: 2017)

9. Explain the steps for constructing a break-even chart and comment on its managerial usefulness. (GU BCom: 2014)

10. Write an essay on CVP analysis including assumptions, advantages and graphical presentation. (GU BCom: 2013)

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