-
Page 1 of 66
THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA AUGUST 2012 EXAMINATION
FOUNDATION LEVEL SUBJECT: 001. PRINCIPLES OF ACCOUNTING
Time: Three hours Full Marks: 100 All questions are to be
attempted. Show computations, where necessary. Answer must be
brief, relevant, neat and clean. Start answering each question from
a fresh sheet.
Q. No. 1. (a) Why do accrual basis financial statements provide
more useful information than cash basis financial
statements? (b) The trial balance of GLOBE ENTERPRISES contained
the following accounts at November 30,
2011, the end of the companys fiscal year.
GLOBE ENTERPRISES Trial Balance
November 30, 2011
Debit (Tk.) Credit(Tk.) Cash 83,500 Accounts Receivable 1,68,500
Merchandise Inventory 1,90,000 Store Supplies 27,500 Store
Equipment 4,25,000 Accumulated Depreciation Store Equipment 90,000
Delivery Equipment 2,40,000 Accumulated Depreciation Delivery
Equipment 30,000 Notes Payable 2,55,000 Accounts Payable 2,42,500
Mannan Capital 5,50,000 Mannan Drawing 60,000 Sales 37,33,000 Sales
Returns and Allowances 21,000 Purchases 25,18,000 Purchase Returns
and Allowances 34,500 Purchase Discounts 18,500 Freight in 54,000
Salaries Expenses 7,00,000 Advertising Expenses 1,32,000 Utilities
Expenses 70,000 Repair Expenses 60,500 Delivery Expenses 83,500
Rent Expenses 1,20,000 Total 49,53,500
========= 49,53,500
=========
-
Page 2 of 66
CMA AUGUST 2012 EXAMINATION FOUNDATION LEVEL SUBJECT: 001.
PRINCIPLES OF ACCOUNTING
Q. No. 1. (contd)
Adjustment data: 1. Store supplies on hand totaled Tk.17,500 .
2. Depreciation is Tk.45,000 on the store equipment and Tk.35,000
on delivery equipment . 3. Interest of Tk.55,000 is accrued on
notes payable at November,30, 2011. 4. Merchandise inventory on
hand at November 30,2011 is Tk.2,25,000. 5. Salaries expenses is
70% selling and 30% administrative. 6. Rent expenses and utilities
expenses are 80% selling and 20% administrative. 7. Tk.1,50,000 of
notes payable are due for payment next year . 8. Repair expenses is
100% administrative.
Required: (i) Enter the trial balances on a work sheet and
complete the work sheet. (ii) Prepare a multiple step income
statement and owners equity statement for the year and a
classified balance sheet as of November 30, 2011. (iii)
Journalize the adjusting entries.
[Marks: (10+10+5) = 25] Q. No. 2. Zobayer Siraj, a former
professional tennis star operates his own tennis shop, ZS Tennis
Shop. At the beginning of the current season his business holds the
following inventory balances.
No. of units
Cost price per unit
Selling price per unit
Racquets 10 Tk. 400 Tk. 850 Tennis shoes 20 250 600 Shirts and
Shorts 35 300 750
The following transactions were completed during June:
June 04: Purchase 30 racquets from Reeve Co. @ Tk. 450 each; FOB
destination, terms 1/10, n/60. The appropriate party paid the
freight cost of Tk. 200.
06: Received credit of Tk. 450 from Reeve Co. for a damaged
racquet that was returned. 08: Sold tennis shoes of 5 units to
members; FOB shipping point, terms 2/10, n/30. The
appropriate party paid the freight cost of Tk. 100.
12: Purchase Shirts and Shorts from Lee Enterprise Tk. 2,400;
FOB shipping point, terms 3/15, n/25. The appropriate party paid
the freight cost of Tk. 150.
15: Paid Reeve Co. in full. 16: Sold racquets of 15 units to DD
Enterprise for cash; FOB Destination. The appropriate
party paid the freight cost of Tk. 300. 17: Receive cash payment
from members for the merchandise sold on June 8. 20: Purchase
supplies on account Tk. 500 from Lesner Supply Co. 22: Made refund
of Tk. 1,700 to DD Enterprise for merchandise returned by them. 25:
Paid Lee enterprise in full.
Required: Journalize the June transactions using a perpetual
inventory system. ZS Tennis Shop applies FIFO method to value
inventories.
[Marks: 20]
-
Page 3 of 66
CMA AUGUST 2012 EXAMINATION FOUNDATION LEVEL SUBJECT: 001.
PRINCIPLES OF ACCOUNTING Q. No. 3.
Mr. Omayer has received his bank statement for the month ended
31st October 2011. At the date, his balance as per bank statement
is Tk. 14,130 whereas his own cash book showed a balance of Tk.
47,330. His accountant investigated the matter, and discovered the
following discrepancies:
(a) Bank charges of Tk. 60 had not been entered in the cash
book.
(b) Checks drawn by Omayer totaling Tk. 450 had not yet been
presented to the bank.
(c) Omayer had not entered receipts from a customer of Tk. 530
in his cash book.
(d) The bank had not credited Omayer with receipts of Tk. 1,970
paid into the bank on 31st October 2011.
(e) Standing order payments against a loan amounting to Tk.
1,240 had not been entered in the cash book.
(f) Omayer had entered a payment to suppliers of Tk. 560 in his
cash book as Tk. 650.
(g) A check received for Tk. 300 from a debtor had been returned
by the bank marked refer to drawer, but this had not been written
back in the cash book.
(h) Omayer had brought down his opening cash book balance of Tk.
6,585 as a debit balance instead of as a credit balance.
(i) An old check payment amounting to Tk. 880 had been written
back in the cash book, but the bank had already honoured it.
(j) Some of Omayers customers had paid to settle their debts by
direct debit. Unfortunately, the bank had credited some direct
debits amounting to Tk. 16,650 to another customers account.
Required:
(i) Prepare a statement showing Omayers adjusted cash book
balance as at 31stOctober 2011.
(ii) Prepare a bank reconciliation statement as at 31st October
2011. (iii) Journalize the errors to rectify bank balance.
[Marks:(6+7+7) = 20]
Q. No. 4.
(a) Goodwill has been defined as the value of all favorable
attributes that relate to a business enterprise. What type of
attributes could result in goodwill?
(b) In the fourth year of an assets 5-years useful life, the
company decides that the asset will have a 6-years service life.
How should the revision of depreciation be recorded?
(c) Plant and machinery costing Tk. 50,000, was purchased on 1
April 2009. This was depreciated for two years at 20 per cent using
the reducing balance method. On 1 April 2011 the machinery
(original cost Tk. 25,000) was sold for Tk. 12,000. Replacement
machines were acquired on the same date for Tk. 34,000. What was
the net book value of plant and machinery at 1 April 2012?
[Marks: (3+4+8) = 15] Q. No. 5
(a) The key to successful business operations is effective
inventory management- Do you agree? Explain.
-
Page 4 of 66
CMA AUGUST 2012 EXAMINATION FOUNDATION LEVEL SUBJECT: 001.
PRINCIPLES OF ACCOUNTING
Q. No. 5. (contd) (b) The management of ROBINSON CORPORATION is
revaluating the appropriateness of using its
present inventory cost flow method, which is average cost. They
request your help in determining the results of operations for 2011
if either the FIFO method or the LIFO method had been used. For
2011, the accounting records show the following data:
Inventories Purchase and Sales
--------------------------------------------------
--------------------------------------------------------- Beginning
(75,000 units) Tk.1,70,000 Total net Sales (11,25,000 units) Tk.
43,25,000 Ending (1,00,000 units) Total cost of goods purchased
28,92,500 (11,50,000 units) Purchases were made quarterly as
follows :
Quarter Units Unit cost (Tk.) Total cost (Tk.)
1 3,00,000 2.30 6,90,000 2 2,50,000 2.50 6,25,000 3 2,50,000
2.60 6,50,000 4 3,50,000 2.65 9,27,500 11,50,000 28,92,500
Operating expenses were Tk.7,35,000 and the companys income tax
is 30% . Required: (i) Prepare comparative condensed income
statement for 2011 under FIFO and LIFO (Show computations of ending
inventory). (ii) Answer the following question for management:
(a) Which cost flow method (FIFO or LIFO) produces the more
meaningful inventory amount for the balance sheet? Why?
(b) Which cost flow method (FIFO or LIFO) produces the more
meaningful net income? Why? (c) Which cost flow method (FIFO or
LIFO) produces the more likely to approximate actual
physical flow of goods? Why? (d) How much additional cash will
be available for management under LIFO than under FIFO?
Why? (e) Will gross profit under this average cost method be
higher or lower than (a) FIFO and (b)
LIFO? (It is not necessary to quantify your answer)
[Marks: {5+ (10+5)} = 20]
= THE END =
-
Page 5 of 66
THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA AUGUST, 2012 EXAMINATION
FOUNDATION LEVEL SUBJECT: 002. BUSINESS COMMUNICATION AND OFFICE
MANAGEMENT
Time: Three hours Full marks: 100 Answer THREE questions from
each part, where Q. No. 4 and Q. No. 8 are compulsory. Answer must
be brief, relevant, neat and clean. Use a fresh sheet for answering
each question. All questions must be answered in English.
PART-A: BUSINESS COMMUNICATION
Q. No. 1. (a) Briefly discuss the role and importance of
communication in management. (b) Show the distinction between
internal and external communication with examples from the
business world. (c) List and explain three important barriers in
interpersonal communication.
[Marks: (5+4+6) = 15] Q. No. 2. (a) Reports are lengthy and
boring. Why write them? Discuss (b) What are the main factors to be
considered while drafting a report? (c) Your HR Manager is planning
to hire a new Chief Accountant for the company. You are required
to
draft a suitably worded advertisement to be published in a local
newspaper. [Marks: (4+4+7) = 15]
Q. No. 3. (a) List and discuss six types of Non Verbal
Communication. (b) A speaker must read the reaction of his audience
correctly. Discuss this statement giving
examples of different types of audience cues. (c) A well written
business letter should not only be a medium of communication , but
also a way to
create goodwill between the two parties. Discuss. [Marks:
(6+5+4) = 15]
Q. No. 4. (a) Recently your company has received some defective
goods from a supplier. You are required to
draft a letter to the supplier informing him about the matter
and seeking compensation. (b) Discuss the importance of
e-communication in todays business. (c) What are the different
styles used in writing a letter. Highlight & discuss the style
you prefer. (d) Your office is planning to hold a picnic in
Gazipur. You are required to draft an Office Notice
informing all employees about this. You are requested to use
your imagination with regard to the details.
[Marks: (5+5+5+5) = 20]
-
Page 6 of 66
CMA AUGUST, 2012 EXAMINATION FOUNDATION LEVEL SUBJECT: 002.
BUSINESS COMMUNICATION AND OFFICE MANAGEMENT
PART-B: OFFICE MANAGEMENT Q. No. 5 (a) Managing an office is all
about ensuring that the work gets done. Do you agree? Discuss. (b)
Ethical standards play a vital role in any organization. Discuss
this statement explaining how you
can design a set of ethics in an Organization. (c) We need to
have manuals for each activity in an office. Discuss this
statement.
[Marks: (5+5+5) = 15] Q. No. 6. (a) Motivating employees costs
money. So, why do it. Do you agree? Discuss the statement
highlighting the importance of employee motivation. (b) List and
discuss the comparative merits and demerits of centralized &
decentralized record
management system. (c) Discuss the factors to be considered in
selecting an office building site.
[Marks: (5+5+5) = 15] Q. No. 7. (a) Good Office environment
promotes harmony between employer & employees. Discuss. (b) A
companys salary structure must be fair & equitable to all. Do
you agree? Highlight in your
answer the major factors to be considered when setting salaries
& fringe benefits in an organization.
(c) The system of filing used must ensure easy accessibility of
the files. Discuss this statement; highlighting the different
methods of filing used.
[Marks: (5+5+5) = 15] Q. No. 8. Write short notes of any Five of
the following: (a) Job specification. (b) Office automation. (c)
Organization chart. (d) Corporate Governance. (e) Records
Management. (f) Management Information System (MIS). (g)
E-Commerce. (h) Curriculum Vitae.
[Marks: (5x4) = 20]
==THE END==
-
Page 7 of 66
THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA AUGUST, 2012 EXAMINATION
FOUNDATION LEVEL SUBJECT: 003. QUANTITATIVE TECHNIQUES
Time: Three hours Full marks: 100 Answer any TEN questions, FIVE
from each part. All questions carry equal marks. Answer must be
brief, relevant, neat and clean. Start answering each question from
a fresh sheet.
PART-A: BUSINESS MATHEMATICS
Q. No. 1.
(a) For any Three sets A, B, C prove that
(i) A )( CB = )( BA )( CA
(ii) A )( CB = )( BA )( CA
(b) Mr. Rahman can purchase a machine by Paying Tk. 40,000 in
cash at now. He can also purchase the machine by 8 equal yearly
installments to be paid at the beginning of each year. If the
interest rate is 12%, what should be amount of each
installment?
[Marks: (5+5) = 10]
Q. No. 2.
(a) Find the equation of the line which passes through the
origin O(o,o) and the point of intersection of the lines 5x +y+4 =
0 and 2x + 3y 1 = 0.
(b) The total cost y for x units of a certain product consists
of fixed cost and the variable cost. It is known that the total
cost is Tk. 1200 for 100 units and Tk. 2700 for 400 units. Assume
that y is a linear function of x.
Required:
(i) Find the linear relationship between x and y.
(ii) Find the slope of the line. What does it indicate?
(iii) Find the cost of producing 200 units of the product.
(iv) If the selling price is Tk. 7 per unit, find the number of
units that must be product for break-even.
[Marks: (4+6) =10]
Q. No. 3.
(a) A farmer has 2000 yards of fence to enclose a rectangular
field. What are the dimensions of the rectangle that encloses the
most area?
(b) Show that sin (1+tan) + cos (1+ cot) = sec + cosec
[Marks: (5+5) = 10]
-
Page 8 of 66
CMA AUGUST, 2012 EXAMINATION
FOUNDATION LEVEL
SUBJECT: 003. QUANTITATIVE TECHNIQUES
Q. No. 4.
(a) Differentiate the following with respect to x
(i) y = x
e4
+ log ( )xsin (ii) Log (x cosx)
(b) If y = 2x + 4/x ; Prove that x2 2
2
dx
yd + x dx
dy - y = 0
[Marks: (5+5) = 10]
Q. No. 5.
(a) Compute the inverse of the following Matrix:
=A
1
2
3
2
4
1
4
2
3
(b) The unit demand function is x = 3
1 (25 2p), where x is the number of units and p is the
price.
Let average cost per unit be Tk. 40. Find the following:
(i) The Revenue function R in terms of price P.
(ii) The cost function C.
(iii) The profit function P.
(iv) The price per unit that maximizes the profit function.
and
(v) The maximum profit. [Marks: (5+5) = 10]
Q. No. 6.
(a) Evaluate the following: (i) +
1
021 x
xdx ; (ii)
( )
+
1
0
2
23
1
1
tan
x
xdx
(b) How many different words can be formed from the word
ARRANGEMENT taken 3 at a time?
[Marks: (5+5) = 10] Q. No. 7.
(a) Evaluate the following: (i)
+
2
1
2
43
xxebx dx
(ii) ( )
+2
0
cossin 2 d .
(b) Find the area of the region between the curve y = F(x) = x
(x-1) and the x axis bounded by the lines x = 0 and x = 1
[Marks: (6+4) = 10]
-
Page 9 of 66
CMA AUGUST, 2012 EXAMINATION
FOUNDATION LEVEL
SUBJECT: 003. QUANTITATIVE TECHNIQUES
PART B : BUSINESS STATISTICS
Q. No. 1.
(a) What do you mean by measures of central tendency? What are
their measures? Among all measures of central tendency which one is
the best and why?
(b) Pepsi company is forecasting regional sales for next year.
The Atlantic branch, with current yearly sales of $ 194.3 million,
is expected to achieve a sales growth of 7.65%; the Midwest branch,
with current sales of $ 79.5 million, is expected to grow by 8.35%
and the Pacific branch, with sales of $ 59.4 million, is expected
to increase sales by 9.15%. What is the average rate of sales
growth forecasted for next year?
[Marks: (5+5) = 10]
Q. No. 2.
(a) Define mean deviation, standard deviation and coefficient of
variation with some of their uses.
(b) For the following values calculate mean deviation and
coefficient of variation.
17.5 13.3 19.6 23.9 14.7 18.5 22.1 15.7 19.6 17.8
[Marks: (6+4) = 10] Q. No. 3.
(a) What do you mean by the terms skewness and kurtosis? Point
out their role in analyzing a frequency distribution.
(b) The following data show the life of some electric bulbs (in
hours) of two different companies:
Life of bulbs (in hours) 500-550 550-600 600-650 650-700
700-750
Philips 50 47 30 18 26
Crown 62 34 22 20 12
(i) Which companys bulbs have higher average life?
(ii) Which companys bulbs are more uniform/stable in their
life?
[Marks: (5+5) = 10] Q. No. 4.
(a) Explain with examples the following concepts: (i)
Correlation (ii) Regression (iii) Co-efficient of Determination
(iv) Regression Co-efficients.
(b) Following data relates to the advertisement expenditure and
sales of a firm:
Ad. Exp. (Lakh Taka)
29 41 48 53 58 50 57
Sales (Crores) 7 8 10 12 13 18 15
Required:
(i) Fit regression equation of Ad. Exp. on Sales.
(ii) Estimate sales for Ad. Exp. of Tk. 65.00 lakhs.
(iii) Comment on the reliability of the estimates.
(iv) Compute the 95% confidence interval of the estimate.
[Marks: (4+6) = 10]
-
Page 10 of 66
CMA AUGUST, 2012 EXAMINATION
FOUNDATION LEVEL
SUBJECT: 003. QUANTITATIVE TECHNIQUES
Q. No. 5.
(a) In a recent study, 80 percent of the homes in the United
States were found to have large screen TVs. In a sample of nine
homes, what is the probability that:
(i) All nine homes have large-screen TVs?
(ii) Less than two have large-screen TVs?
(iii) More than two have large-screen TVs?
(b) A recent study of the hourly wages of maintenance crew
members for major airlines showed that the mean hourly salary was $
16.50, with a standard deviation of $3.50. If we select a crew
member at random, what is the probability the crew member
earns:
(i) Between $ 16.50 and $20.00 per hour?
(ii) At least $ 20.00 per hour?
(iii) At most $15.00 per hour?
[Marks: (5+5) = 10]
Q. No. 6.
(a) Explain with examples the following concepts: (i) Mutually
exclusive events (ii) Sample space (iii) Classical definition of
probability (iv) Subjective probability.
(b) 220 workers employed in a firm in the garment sector of
Bangladesh classified according to gender and skills are presented
as follows:
Skill
Gender
Skilled
S1
Semi Skilled
S2
Unskilled
S3
Total
Male (M) 38 17 5 60
Female (F) 103 37 20 160
Total 141 54 25 220
If one worker is selected at random compute the followings: (i)
Marginal probabilities (ii) Joint probabilities (iii) Conditional
probabilities (iv) Union probabilities.
[Marks: (4+6) = 10]
Q. No. 7.
(a) What is sampling? Discuss the different types of sampling
with example.
(b) Distinguish between the followings:
(i) Statistic & Parameter (ii) Null and Alternative
hypotheses (iii) Type-I & Type-II errors.
[Marks: (5+5) = 10]
= THE END =
-
Page 11 of 66
THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA AUGUST, 2012 EXAMINATION
FOUNDATION LEVEL SUBJECT: 004. BUSINESS ECONOMICS AND
INTERNATIONAL BUSINESS
Time: Three hours Full Marks: 100 Answer FIVE questions, taking
at least TWO from each Group A and B. Show computations, where
necessary. Answer must be brief, relevant, neat and clean. Start
answering each question from a fresh sheet.
GROUP-A: BUSINESS ECONOMICS
Q. No. 1. (a) Explain the following terms under the Theory of
Demand and Supply:-
(i) Utility and Law of Demand and Supply (ii) Time and Supply
(iii) Purchasing Power (iv) Equilibrium Price and Quantity
(b) Explain factors that determine how much Cone Ice-cream a
firm will produce? (c) When and how do Supply and Demand together
set the price of a good and the quantity sold?
Explain. (d) Calculate the equilibrium quantity of the goods
when demand and supply functions of a goods are
given as Qd = 19,000 300P and Qs = 17,000 + 100P respectively.
(e) The demand function for Marker pen is estimated as QR = 20,000
2,500PR + 5Y + 100PC
Where QR = Quantity of Marker pen demanded PR = Price of Marker
pen PC = Price of Competitors product Y = Per capita income of the
consumer If the current price of each Marker pen is Tk. 4, the
price of the competitors product is Tk. 10 and per capita income is
Tk. 4,000, what will be the income elasticity of demand?
[Marks: (6+4+4+3+3) = 20] Q. No. 2. (a) Study of Business
Economics and International Business is of tremendous help to
Management
Accountants in their professional work. Discuss this statement,
giving appropriate examples. (b) Distinguish between:-
(i) Fixed Cost and Variable Cost. (ii) Marginal Cost and Average
Cost.
(c) Corporate Social Responsibility expenditures add up to costs
and do not add anything to revenues. Do you agree? Discuss this
statement.
[Marks: (6+6+8) = 20] Q. No. 3. (a) Define Price Discrimination
and state its required conditions under monopoly. (b) Compare
between Monopoly and Perfect Competition. (c) Distinguish between
Economics of scope and Economics of scale. (d) When 10 units of
output are produced, the average cost of production (AC) is Tk. 30.
If average
cost of production (AC) increases to Tk. 40 with an increase in
output by one unit, what is the marginal cost of producing the 11th
unit?
(e) The total cost function for Astra Ltd. is given as TC = 500
+ 4Q + 2Q2. The firm is a perfectly competitive firm and is selling
the product at Tk. 150 per unit. If the output produced and sold by
the firm is 10 units, what is the profit (loss) earned by the
firm?
[Marks: (5+5+4+3+3) = 20]
-
Page 12 of 66
CMA AUGUST, 2012 EXAMINATION
FOUNDATION LEVEL
SUBJECT: 004. BUSINESS ECONOMICS AND INTERNATIONAL BUSINESS
Q. No. 4. (a) How is equilibrium price determined in the market?
(b) (i) Differentiate between demand pull and cost push inflation.
(ii) Discuss the various measures of credit control taken by the
Central Bank to control inflation. (c) Explain the ways in which
public expenditure can play an important role in tackling rural
poverty.
[Marks: {5+(4+5)+6} = 20] Q. No. 5. (a) Explain Super Profits in
firms. (b) What do you understand by movement along the demand
curve? Explain with examples. (c) Discuss the factors that
determine elasticity of demand. (d) Calculate price elasticity,
income elasticity and cross elasticity from the following figures
of a firm
selling product X: Years Sales in Quantity of
X (No. of units) Price per unit of X
in Taka Price per unit of Y
in Taka Per capita Income
in taka 2000 30,000 30 10 10,000 2010 60,000 20 15 20,000
[Marks: (4+5+4+7) = 20]
GROUP B : INTERNATIONAL BUSINESS Q. No. 6. (a) International
Trade is vital for a Countrys overall development. Discuss this
statement, giving
examples as appropriate. (b) Bangladesh has not been very
successful in attracting FDIs. Explain the reason(s) behind
this
situation. (c) Discuss the determinants of demand for readymade
garments of Bangladesh in the world market.
[Marks: (6+7+7) = 20] Q. No. 7. Write short notes on any five of
the following: (i) Anti-dumping. (ii) GATT. (iii) Global Network
Strategy. (iv) Technology Transfer. (v) Product Life Cycle. (vi)
Market Segmentation. (vii) Balance of Trade and Balance of
Payment.
[Marks: (5 x 4) = 20] Q. No. 8. (a) Trade must always promote a
win-win situation for both parties. Is that a realistic
assumption?
Discuss, giving examples as appropriate. (b) Write short notes
on:
(i) Back to back letter of credit. (ii) Mode(s) of Export
financing in Bangladesh.
(c) Most developing countries have certain Infant Industry
arguments? Discuss these in the context of the development of
Bangladesh. Give examples as relevant.
[Marks: (6+6+8) = 20]
= THE END =
-
Page 13 of 66
THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA AUGUST-2012 EXAMINATION
PROFESSIONAL LEVEL-I SUBJECT: 101.INTERMEDIATE FINANCIAL
ACCOUNTING.
Time: Three hours Full Marks: 100
All questions are to be attempted. Show computations, where
necessary. Answer must be brief, relevant, neat and clean. Start
answering each question from a fresh sheet.
Q. No. 1.
The following trail balance was extracted from the books of
Friends International Ltd., a manufacturing company, as at December
2011.
Taka Taka Purchase 2,678,000 - Prepayments 2,000 - Selling and
distribution expenses 175,000 - Inventories at 1 January 2011
107,000 - Land and buildings at cost 840,000 - Plant and machinery
at cost 714,000 - Accumulated depreciation on buildings at 1
January 2011 - 166,000 Accumulated depreciation on plant and
machinery at 1 January - 368,000 Accounts payable - 80,000 Warranty
provision - 19,000 Loan interest 8,000 - Mortgage - 90,000 Mortgage
interest 14,000 - Administrative expense 153,000 - Accounts
receivables 105,000 - Other payables - 4,000 Retained earnings at 1
January 2011 - 138,000 General reserve - 21,000 Ordinary share
capital of Tk. 10 each - 382,000 Bank loan - 58,000 Interest income
- 5,000 Share premium account - 199,000 Bank deposit 4,000 - Bank
current account 20,000 - Revenue - 3,290,000 4,820,000
4,820,000
You also obtain the following information.
(i) Depreciation is to be provided on the straight-line method
on buildings at 2% per annum and on plant and machinery at 20% per
annum. The cost of the buildings at 31 December was Tk.
650,000.
(ii) Inventories at 31 December 2011 comprised raw materials Tk.
113,000, work in process Tk. 12,000 and finished goods Tk.
54,000.
(iii) The original mortgage of Tk. 225,000 was taken out on 1
January 2002 for a term of 15 years, repayable in equal monthly
installments on the 25th day of each month.
(iv) The bank loan was granted on 1 September 2008 for a fixed
term of ten years.
-
Page 14 of 66
CMA AUGUST -2012 EXAMINATION PROFESSIONAL LEVEL-I SUBJECT:
101.INTERMEDIATE FINANCIAL ACCOUNTING.
Q. No. 1. (Contd)
(v) Provision is to be made for income tax @ 37.5%, based on the
results of the year.
(vi) A transfer of Tk. 21,000 was made to the general reserve
during the year.
Required:
Prepare Friends International Ltd.s Statement of Comprehensive
Income for the year ended 31 December 2011 and Statement of
Financial Position at that date in accordance with the requirements
of BAS 1.
[Marks: 20]
Q. No. 2
(a) You are a partly qualified CMA and working as a Deputy
Credit Controller of a Company named Monyem Limited. The management
wants a total Debtors Account from the following data: Transactions
for the month of June-2012 Amount (Tk.) i Sales (includes cash
sales of Tk. 7,000) 68,000 ii Collections from debtors (cash)
57,000 iii Return inward 700 iv Discount allowed 2,000 v Bad debts
written off 1,500 vi Cheques received 10,000 vii Cheques dishonored
2,000 viii Bad debts written off now recovered 500 ix Provision for
doubtful debts 1,200 x Balance outstanding on 31.05.2012
(Receivables) 20,000
Required: Prepare a Debtors Account for the month of
June-2012.
(b) The following information relates to the debt securities
investments of KK & Co.
(i) On February 1, the company purchased 12% bonds of PQS &
Co. having a par value of Tk. 500,000 at 100 plus accrued interest.
Interest is payable on April 1 and October 1.
(ii) On April 1, semiannual interest is received.
(iii) On July 1, 9% bonds of XYZ & Co. were purchased. These
bonds with a par value of Tk. 200,000 were purchased at 100 plus
accrued interest. Interest dates are June 1 and December 1.
(iv) On September 1, bonds with a par value of Tk. 100,000,
purchased on February 1, are sold at 99 plus accrued interest.
(v) On October 1, semiannual interest is received.
(vi) On December 1, semiannual interest is received.
(vii) On December 31, the fair value of the bonds purchased
February 1 and July 1 are 95 and 95, respectively
Required:
(1) Prepare all journal entries you consider necessary,
including year-end entries (December 31) assuming these are
available-for-sale securities.
(2) If KK & Co. classified these as held-to-maturity
securities, explain how the journal entries would differ from those
in part(1).
[Marks: 7 + 13 = 20]
-
Page 15 of 66
CMA AUGUST -2012 EXAMINATION PROFESSIONAL LEVEL-I SUBJECT:
101.INTERMEDIATE FINANCIAL ACCOUNTING. Q. No. 3.
(a) As per Para 6 of IAS-2, inventories include assets held for
sale in the ordinary course of business (finished goods), assets in
the production process for sale in the ordinary course of business
(work in process), and materials and supplies that are consumed in
production (raw materials). In the Para 16 and 18 of IAS-2 where
mentioned that inventory cost should not include few items.
Can you write the name of the items?
(b) Pathan Furniture Ltd. is a retailer of Italian furniture and
has five major products: Sofas, Dining Tables, Beds, Office Tables
and Chairs. At June 30, 2012, quantity on hand, cost per unit, and
net realizable value (NRV) per unit of the product lines are as
follows:
Products
Descriptions
Sofas
Dining Tables
Beds Office Tables
Chairs
Quantity on hand 100 200 300 400 500 Cost per unit Tk. 1,00,000
Tk. 50,000 Tk. 1,50,000 Tk. 75,000 Tk. 25,000 NRV per unit Tk.
1,02,000 Tk. 45,000 Tk. 1,60,00 Tk. 77,000 Tk. 20,000
Required: Compute the valuation of the inventory of Pathan
Furniture Ltd. at June 30, 2012, under IAS-2 using the Lower of
Cost and NRV principle.
(c) On 1st April, 2011, Farhana has 50,000 ordinary shares of M3
Ltd. at a book value of Tk.15 per share (face value Tk.10 each).
She provides you the further information: (1) On 20th June, 2011,
she purchased another 10,000 shares of M3 Ltd. at Tk.16 per share.
(2) On 1st August, 2011, M3 Ltd. issued one equity bonus share for
every 6 shares held by the
shareholders. (3) On 31st October, 2011, the directors of M3
Ltd. announced a right issue which entitle the
holders to subscribe 3 shares for every 7 shares at Tk.15 per
share. Shareholders can transfer their rights in full or in
part.
Farhana sold 1/3rd of entitlement to Yeasmine for a
consideration of Tk.2 per share and subscribe the rest on 5th
November, 2011. Required: Prepare Investment A/c in the books of
Farhana for the year ending 31st March, 2012 (accounting year April
March).
[Marks: 4 + 7 +9 = 20] Q. No. 4. (a) An accountant must be
familiar with the concepts involved in determining earnings of a
business
entity. The amount of earnings reported for a business entity is
depended on the proper recognition, in general, of revenue and
expenses for a given time period. In some situations, costs are
recognized as expenses at the time of product sale. In other
situations, guidelines have been developed for recognizing costs as
expenses or losses by other criteria. Required: (i) Explain the
rationale for recognizing costs as expenses at the time of product
sale. (ii) What is the rationale underlying the appropriateness of
treating costs as expenses of a period
instead of assigning the costs to an asset? Explain. (iii)
Identify the conditions under which it would be appropriate to
treat a cost as a loss.
-
Page 16 of 66
CMA AUGUST -2012 EXAMINATION PROFESSIONAL LEVEL-I SUBJECT:
101.INTERMEDIATE FINANCIAL ACCOUNTING.
Q. No. 4. (Contd)
(b) In April 2012 your client, Dilara Pharmaceuticals Ltd. a
private company, decided to undertake a major restructuring of its
manufacturing activities. The client had two factories in different
towns that produce the same products. Management decided that
production would be moved to one of the factories (Z). Management
has also decided to incur additional costs to upgrade the
facilities in order to increase production significantly. The
remaining factory (X) was closed. The company has incurred the
following costs:
(i) Cost of closing factory X, including the cost of terminating
some existing contracts and redundancy payments for staff
Tk. 1,000,000
(ii) Cost of feasibility study carried out by the Company to
determine the best system for factory Z
Tk. 90,000
(iii) Cost of relocating key staff to the town where factory Z
is located. The staff are not contracted to remain with the
company.
Tk. 50,000
(iv) Cost of implementing the new system in factory Z:
(a) Consulting fees Tk. 550,000
(b) Allocation of time spent by internal employees Tk.
150,000
(c) training for new staff Tk. 40,000
(v) Efficiency losses in early production stages Tk. 30,000
(vi) Campaign specifically to advertise the new technology being
used Tk. 20,000
Required:
How should each of the above costs be accounted for: capitalized
or expensed? Support your answer with reference of relevant
accounting standards (if any).
[Marks: (12+8) = 20] Q. No. 5.
General Motors Ltd. has prepared the balance sheets as set out
below:
Balance sheets as at 31 March
ASSETS
20111(Tk. 000))
2010 (Tk.) 000)
None-current assets Property, plant and equipment 30,946 25,141
Investments 7,100 - 38,046 25,141 Current assets Inventories 16,487
15,892 Trade and other receivables 12,347 8,104 Cash and cash
equivalents 863 724 29,697 24720 Total assets 67,743 49,861
-
Page 17 of 66
CMA AUGUST -2012 EXAMINATION PROFESSIONAL LEVEL-I SUBJECT:
101.INTERMEDIATE FINANCIAL ACCOUNTING.
Q. No. 5. (Contd) EQUITY AND LIABILITIES
Capital and reserves Ordinary share capital (Tk. 1 per
ordinary
share) 13,000 10,000
Share premium 12,500 5,000 Revaluation reserve 7,450 2,650
Retained earnings 24,776 22,856 57,726 40,506 Non-current
liabilities 3,250 4,250 Current liabilities Trade payables 2,771
2,632 Accruals 1,200 1,235 Tax liability 2,796 1,238 6,767 5,105
Total equity and liabilities 67,743 49,861 The following notes are
relevant:
(i) Profit before tax was Tk. 5,404,000 for the year ended 31
March 2011.
(ii) Provision for tax was Tk. 2,634,000 for the year ended 31
March 2011. Taxation provided at 31 March 2010 was settled at a
figure lower than the amount provided.
(iii) Analysis of property, plant and equipment 2011(Tk. 000)
2010 (Tk. 000)
Freehold buildings 25,100 19,780 Fixtures and fittings 5,846
5,361
30,946 25,141
(iv) Depreciation has not been provided on freehold buildings.
During the year a professional revaluation of buildings taking
account of additions during the year has been incorporated into the
books of account. There were no disposals during the year.
(v) Additions to fixtures and fittings during the year totaled
Tk. 1,365,000 at cost. There were no disposals.
(vi) During the year the company made a right issue of shares on
the basis of three new shares for every ten shares held at a price
of Tk. 3.5 per share. Pending the purchase of new plant part of the
proceeds of the issue has been invested in shares in other listed
companies.
Required:
From the above information, prepare a cash flow statement using
the indirect method in accordance with BAS 7 Cash Flow Statements
for the year ended 31 March 2011.
[Marks: 20]
= THE END =
-
Page 18 of 66
THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA AUGUST-2012 EXAMINATION
PROFESSIONAL LEVEL-I SUBJECT: 102.COST ACCOUNTING.
Time: Three hours Full Marks: 100 All questions are to be
attempted. Show computations, where necessary. Answer must be
brief, relevant, neat and clean. Start answering each question from
a fresh sheet.
Q. NO. 1. (a) Traditional costing charges high volume product
high Do you believe the statement? Why or
why not? (b) Jonson Company manufactures two products, Product A
and Product B those varies significantly in
terms of resource consumption. Unit costs for materials and
labor are: Product A Product B Direct Material Tk. 8 Tk. 10 Direct
Labor 4 6
One unit of Product A requires two machine hours, Product B
requires three machine hours for completion. The company has only
fixed machine hours and runs at capacity. Estimated indirect
manufacturing costs (factory overhead) are Tk. 825,000 to produce
22,000 units of Product A and 60,000 units of Product B. Required:
a. Compute the predetermined overhead application rate. b. What is
the cost to manufacture one unit of each product under traditional
costing? c. There are some complains from the customers regarding
product cots. Tom Harrison, the
President, feels that there may be product cost
cross-subsidization. He called upon Miss Kelly, the cost accountant
recently joined the team, and asked her to apply ABC with the
following information:
Activity Traceable Costs Total Activity Product A Product B
Machine Setups Tk. 450,000 4,200 1,200 3,000 Purchase Orders
220,000 400 290 110 Material Receipts 155,000 10,300 3,000
7,300
i. Compute activity rates. ii. Compute overhead cost per unit of
Product A and B. iii. Compute total cost per unit of Product A and
B under ABC. iv. Do you believe that the President was right?
Justify your answer.
[Marks: {5+(5+5+5)} = 20] Q. No. 2. (a) There are 5 Rs in
material Management. What these 5Rs stand for? No elaboration is
required. (b) A company requires 48,000 components per year which
will be used as a constant rate. Carrying
costs are Tk. 6.00 per unit. Per annum the cost per reorder
Tk.1000 irrespective of order size. Purchased orders are placed on
the assumption that delivery will be received when stock component
falls to zero. Required: i. Calculate the cost per annum of
pursuing purchase order policies where the order size may be
from 2000 to 6000 components in multiplies of 1000 components
and hence state the purchase order quantity which will minimize
cost.
ii. Use the economic order quantity formula to calculate the
purchase order quantity that will minimize cost.
-
Page 19 of 66
CMA AUGUST -2012 EXAMINATION PROFESSIONAL LEVEL-I SUBJECT:
102.COST ACCOUNTING. Q. No. 2.(Contd.)
iii. Use the economic order quantity formula to calculate the
EOQ where annual demand has risen to 96,000 components.
(c) ABC company has obtained the following costs and other data
pertaining to one of its materials:
Working days per year 250 Normal use per day 500 units Maximum
use per day 600 units Minimum use per day 100 units Lead time 5
days Variable cost of placing one order Tk. 36 Variable carrying
cost per unit per year Tk. 4 Required: compute the following: 1.
Economic order quantity. 2. Safety stock (maximum) 3. Order point
4. Normal maximum inventory 5. Absolute maximum inventory
[Marks: {3+( 3+2+2) +10) = 20] Q. No. 3.
Mr. Sajeeb is a student of management accounting, recently
joined in Complete Clothes Care (CCC) a RMG company and usually
produce western branded clothes. The company follows integrated
accounting system. Due to several macro environmental factors like
world economic meltdown, adverse weather for cotton plantation,
interest rate hike and high inflation in operating country, every
firm of RMG industry facing tough competition firstly from world
competitors then from domestic competitors. In this circumstance,
to retain effective rate of return management of CCC has decided to
ensure efficient, effective and economic use of resources at all
sphere of activities through practice of management accounting
techniques. Management apprehending that in coming summer North
American countries will procure good number of budgeted casual
summer wear and lowest CM and desired quality will be a key factor
for awarding orders.
Considering above scenario CFO of CCC asked Mr. Sajeeb to
collect historical and prospective information in both type i.e.
quantitative and qualitative regarding casual summer cloths and
submit report to the management.
Mr. Sajeeb found that in the year 2011 the company supplied
three types of branded casual summer cloths and relevant
information regarding three jobs as follows: Particulars Job #
501_2011 Job # 502_2011 Job # 503_2011 Type Gents wear Women wear
Kids wear Quantity (Pcs) 1,00,000 1,50,000 2,50,000 Labor hour
rquired per pcs 0.50 0.75 1 Machine hour required per pcs 0.50 0.50
0.25 CM per pcs revenue (BDT) 170 250 275 Cost of fabrics per pcs
(BDT) 70 75 50 Cost of accessories per pcs (BDT) 10 20 25 Cost of
Special fabrics per pcs (BDT) - 10 15 Labor cost per hour (BDT) 100
100 100
-
Page 20 of 66
CMA AUGUST -2012 EXAMINATION PROFESSIONAL LEVEL-I SUBJECT:
102.COST ACCOUNTING. Q. No. 3.(Contd.)
Factory overhead total BDT 12,50,000 and 60% of which varied
with the machine hour and remaining 40% is capacity related
cost.
Administrative staffs salary BDT 100,000.
The company spends BDT 50,000 for CSR activities.
Due to critical design 5% of women wear and 10% of kids wear
rejected and billing money were not received and it is revealed
that with a proper skilled labor such quality issues can be solved
which will increase labor cost for women wear by 10% and for kids
wear by 20%.
In connection with above job the company purchased a wrong
machine costing BDT 10,000. The machine has no resale value and do
not wear out through use.
Instead of running the factory, the company could rent its
factory space for BDT 50,000.
As per tradition in the year 2011 the company produced only
branded items and operated at 70% capacity. It had an option to
carry non-branded item but it did not carry non-branded order.
Required:
(a) Mention prerequisite for job order costing.
(b) Prepare a cost sheet for all jobs and for overall
company.
(c) Calculate marginal cost for the order to be placed for each
category of job in the year 2012. Assuming that all materials cost
and labor cost will increase by 5% & 10% respectively and
skilled labor will engage for women wear and kids wear.
(d) With compare to branded item, non-branded items material
cost 20% lesser, labor cost 30% lesser. After meeting the branded
item order, if the company has spare capacity, suggest how much
minimum per pcs CM is required to carry non-branded item order in
the year 2012?
[Marks: (2+10+5+3) = 20]
Q. No. 4.
Zenith Pharmaceuticals of Congo produces a unique syrup using
cane sugar and local herbs. The syrup is sold in small bottles and
is praised as a flavoring for drinks and for use in desserts. The
bottles are sold for Tk. 25 each. The first stage in the production
process is carried out in the Mixing Department, which removes
foreign matter from the raw materials and mixes them in the proper
proportions in large vats. The company uses the weighted average
method in its process costing system. Materials in the department
needs to be introduced in several stages, 30% of the total
materials are introduced when production has been started, 50% of
the total materials are introduced when production has been
completed by 50% and the rest 20% of the total material should be
introduced at 90% process level. Labor will be paid when work has
been done by 30% and overhead costs are incurred uniformly
throughout the process. The company uses weighted average method of
costing.
The following activity was recorded in the Mixing Department
during July: Units DM DL MOH Work in Process 7/1/10 (25% completed)
20,000 Tk. 12,500 -- Tk. 15,500 Units started in production 110,000
- - - Costs for July Tk. 250,000 Tk. 247,000 Tk.344,500 Work in
Process 7/31/00 (60% completed) 25,000 - - -
Required: Prepare a production report for the Mixing Department
for the month. [Marks: 20]
-
Page 21 of 66
CMA AUGUST -2012 EXAMINATION PROFESSIONAL LEVEL-I SUBJECT:
102.COST ACCOUNTING. Q. No. 5.
(a) What do you mean by Labor Turnover? From the following data
provided to you find out the labor turnover rate by applying:
(i) Separation rate method;
(ii) Net labor T.O rate (or) Replacement method;
(iii) Flux rate method
No. of workers on the payroll-
At the beginning of the month 900
At the end of the month 1,100
During the month, 10 workers left, 40 persons were discharged
and 150 workers were recruited. Of there, 25 workers were recruited
in the vacancies of those leaving, while the rest were engaged for
an expansion scheme.
(b) Particulars for a worker X are given below:-
Hourly rate = Tk. 10/-
Agreed rate of production = 100 units per hour
Hours worked = 8 hours
Units produced = 1200
Required: Total earnings for the day under Rowan plan.
(c) A companys new process will be carried out in one
department. The production process has an expected learning curve
of 80%. The cost subject to the learning effect for the first batch
produced by the process was Tk. 20,000.
Required: Compute the cumulative average cost per batch subject
to the learning effect after the 16th batch has been produced.
Marks: (7+7+6) = 20]
= THE END =
-
Page 22 of 66
THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA AUGUST, 2012 EXAMINATION
PROFESSIONAL LEVEL-I SUBJECT: 103. MANAGEMENT AND MARKETING
MANAGEMENT
Time: Three hours Full marks: 100 Answer any THREE questions
from each part. Answer must be brief, relevant, neat and clean.
Start answering each question from a fresh sheet.
PART A : MANAGEMENT (TOTAL MARKS-50) *
Q. No. 1. (a) What are the four basic activities that comprise
the management process? How they are related
to one another? (b) Define efficiency and effectiveness in
Management with examples. (c) Identify and discuss contemporary
management issues and challenges.
[Marks: (6+4+6) = 16] Q. No. 2. (a) Differentiate between
diversity and multiculturalism in organizations. (b) Briefly
describe the effects of diversity and multiculturalism in
organizations.
[Marks: (6+10) = 16] Q. No. 3. (a) Discuss the concepts of
operational, financial and strategic control. (b) How can we ensure
control over quality, cost and productivity.
[Marks: (8+8) = 16] Q. No. 4. (a) Identify and describe how the
environment affects organizations and how organizations
response
to their environment. (b) Discuss the determinants of an
organizations culture and how the culture can be changed and
managed? (c) What are the characteristics of multicultural
organization?
[Marks: (6+4+6) = 16] Q. No. 5. Write short notes on the
following: (a) Corporate Social Responsibility; (b) TQM; (c)
Leadership; (d) Committee.
[Marks: (4 x 4) = 16]
* Two marks are reserved for neatness and relevance.
-
Page 23 of 66
CMA AUGUST, 2012 EXAMINATION PROFESSIONAL LEVEL-I SUBJECT: 103.
MANAGEMENT AND MARKETING MANAGEMENT
PART B : MARKETING MANAGEMENT (TOTAL MARKS-50) *
Q. No. 6. (a) Define Market, Marketer, Prospect and Marketing.
(b) What is Holistic Marketing concept? Draw a schematic overview
of four broad components
characterizing Holistic Marketing. (c) As a Cost Management
expert why do you need to understand marketing?
[Marks: (4+8+4) = 16] Q. No. 7. (a) Describe the stages of the
product life cycle. (b) How marketing strategies change during the
product life cycle.
[Marks: (8+8) = 16] Q. No. 8. (a) What is a brand? When spending
money on brands becomes profitable? (b) How we can brand
Bangladesh? (c) How we can brand CMA profession?
[Marks: (6+5+5) = 16] Q. No. 9. (a) Describe the importance of
marketing channels in the value delivery process. (b) What are the
factors you should consider for developing a strong marketing
channel? (c) Compare between trade promotion and consumer
promotion.
[Marks: (6+6+4) = 16] Q. No. 10. (a) What is strategic marketing
planning? (b) Explain the Boston Consulting Group (BCG) Matrix.
When we should use this matrix?
[Marks: (6+10) = 16]
* Two marks are reserved for neatness and relevance.
= THE END =
-
Page 24 of 66
THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA AUGUST, 2012 EXAMINATION
PROFESSIONAL LEVEL-I SUBJECT: 104. INFORMATION TECHNOLOGY
Time: 2 hours 30 minutes Full Marks: 80
Answer any four of the following questions. Answer must be
brief, relevant, neat and clean. Start answering each question from
a fresh sheet.
Q. No. 1. a) Define Information Systems. Describe the key
components of Information Systems. b) What is MIS? "Only a
computerized MIS can cope up with the dynamics of changing
management
requirements"-Explain. c) Discuss points that are important
while designing an MIS for a business organization. d) What are the
differences between MIS and DSS?
[Marks: (4X5) = 20] Q. No. 2. (a) In keeping the organizational
information in a file processing system, what are the major
disadvantages and how database management systems can reduce the
aforesaid problems? (b) Explain with example the difference between
the following terms with reference to a Database:
* Data and Information * Field and Record
(c) What do you understand by the term memory? What is a primary
memory? What are the distinguishing characteristics of a primary
memory?
(d) Distinguish between a batch processing system and an online
processing system. [Marks: (4X5) = 20]
Q. No. 3. (a) What are the differences between system software
and application software package? Mention two
examples each. (b) Discuss input and output devices with some
examples each. (c) What is Data Flow Diagram (DFD)? Describe the
rules of constructing a DFD with figure?
[Marks: (7+6+7) = 20] Q. No. 4. (a) Compare and contrast
Internet, Intranet and Extranet. (b) What does the e' stand for in
e-commerce? How do you differentiate between commerce' and
e-commerce'? (c) What do you mean by security control? Why it is
needed in an Organization? (d) What do you understand by the life
cycle of a system? "Designing is considered the most important
stage in SDLC. Do you agree with this statement? [Marks: (4X5) =
20]
Q. No. 5. (a) Discuss about prevention of computer related waste
and mistakes. (b) What is security? How to develop a disaster
recovery plan? (c) Define computer crimes. Critically explain the
procedures of auditing information systems to
control computer crimes. [Marks: (4+6+10) = 20]
Q. No. 6. Write short notes on: (a) Outsourcing; (b) Artificial
Intelligence; (c) Knowledge Management; (d) Compiler and
Interpreter; (e) Database Administrator
[Marks: (5X4) = 20]
=THE END=
-
Page 25 of 66
THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA AUGUST -2012 EXAMINATION
PROFESSIONAL LEVEL-II SUBJECT: 201.ADVANCED FINANCIAL
ACCOUNTING-I.
Time: Three hours Full Marks: 100
All questions are to be attempted. Show computations, where
necessary. Answer must be brief, relevant, neat and clean. Start
answering each question from a fresh sheet.
Q. No. 1.
(a) The substance rather than the legal form of the lease
contract is indicative of the classification of lease as finance or
operating. Do you agree? Why?
(b) SMX Leasing Company agrees to lease machinery to PMX
Corporation on January 1, 2010. The following information relates
to the lease agreement.
1. The term of the lease is 7 years with no renewal option, and
the machinery has an estimated economic life of 9 years.
2. The cost of the machinery is Tk.420,000, and the fair value
of the asset on January 1, 2010, is Tk.560,000.
3. At the end of the lease term the asset reverts to the lessor.
At the end to the lease term the asset is expected to have a
guaranteed residual value of Tk.80,000. PMX depreciates all of its
equipment on a straight-line basis.
4. The lease agreement requires equal annual rental payments,
beginning on January 1, 2010. 5. The collectability of the lease
payments is reasonably predictable, and there are no important
uncertainties surrounding the amounts of costs yet to be
incurred by the lessor. 6. SMX desires a 10% rate of return on its
investments. PMXs incremental borrowing rate is
11%. Present value of Tk.1 at 10% for 7 years is 0.51316 and 11%
for 7 years is 0.48166 Present value of an annuity due at 10% for 7
years is 5.35526 and 11% for 7years is
5.23054.
Instructions:
(a) Discuss the nature of this lease for both the lessee and the
lessor, according to IAS-17 Leases.
(b) Calculate the amount of the annual rental payment
required.
(c) Compute the present value of the minimum lease payments.
(d) Prepare the journal entries PMX would make in 2010 and 2011
related to the lease arrangement.
[Marks: {5+(4+3+3+5)} = 20] Q. No. 2. (a) How can you classify
an asset as a current asset or non-current? Briefly describe as per
IAS-1.
-
Page 26 of 66
CMA AUGUST -2012 EXAMINATION PROFESSIONAL LEVEL-II SUBJECT:
201.ADVANCED FINANCIAL ACCOUNTING-I.
Q. No. 2.(Contd.)
(b) The R & Co. had the following balance sheet on April 30,
2012 at which the company is contemplating filing a petition for
liquidation.
R & Company Balance sheet April 30, 2012
Assets Taka Liabilities & stock holders equity Taka Cash
Notes Receivables Accounts Receivables (Net) Inventories Finished
goods Work in Process Raw materials Prepaid Insurance Investment in
Grameen Phone Land Buildings (Net) Machinery &
Equipments(net)
8,200 24,000 47,000
56,000 24,000 39,000
1,200
26,500
42,000 1,98,000 93,000
Bank Notes Payable Accounts Payables Accrued Salaries &
Wages Accrued Interest On Bank Notes On Mortgage Mortgage Note
Payables Capital Stock Retained Earnings (deficit)
32,000 1,95,000
13,500
1,100 8,500
2,00,000 2,50,000
(1,41,200)
Total Assets 5,58,900 Total Liabilities & stock holders
equity 5,58,900
Additional Information:
1. The notes receivable are expected to be fully realized and
they have been pledged as collateral on Bangladesh Development Bank
note in the principal amount of BDT. 20,000.00 plus accrued
interest of BDT. 600.00
2. Accounts receivable have been an estimated collectible value
of BDT. 28,000.00
3. Finished goods inventory can be sold at a markup of 20% over
cost, with selling expenses estimated at 10% of selling price. Work
in process has no value unless finished. The estimated cost to
complete totals BDT. 12,000.00, of which 5,000.00 represent the
cost of Raw Materials. The estimated selling price of the work in
process inventory when finished is 25,000.00. The remaining raw
materials inventory has an estimated selling price 70% of its
cost.
4. The recovery value of prepaid Insurance is 6,00.00
5. The Grameen phone stock is pledged as collateral on a Bank
note payable in the principal amount of 12,000.00 plus accrued
interest of 500.00.
6. Land & Building have appraised values of BDT. 40,000.00
and BDT. 1,00,000.00 respectively, and serve as collateral on the
mortgage note payable.
7. The machinery and equipments have an estimated disposal value
of 38,000.00
Prepare the statement of affairs for R & Company along with
a Deficiency Account summarizing estimated gains & losses on
the realization of assets.
[Marks: (5+15) = 20]
-
Page 27 of 66
CMA AUGUST -2012 EXAMINATION PROFESSIONAL LEVEL-II SUBJECT:
201.ADVANCED FINANCIAL ACCOUNTING-I. Q. No.3.
(a) What is the nature of a sale on consignment? When is revenue
recognized from a consignment sale?
(b) OMX Inc. started a four-year contract to build a dam.
Activities commenced on February 1, 2010. The total contract price
amounted to Tk.12,000,000, and it was estimated that the work would
be completed at a total cost of Tk.9,500,000. In the construction
agreement the customer agreed to accept increases in wage tariffs
additional to the contract price.
The following information refers to contract activities for the
financial year ending December 31, 2010: 1. Costs for the year:
Items Taka Material 1,400,000 Labor 800,000 Operating overhead
150,000 Subcontractors 180,000
2. Current estimate of total contract costs indicates the
following: Materials will be Tk.180,000 higher than expected. Total
labor costs will be Tk.300,000 higher than expected. Of this
amount, only Tk.240,000
will be the result of increased wage tariffs. The remainder will
be caused by inefficiencies. A savings of Tk.30,000 is expected on
operating overhead. 3. During the current financial year the
customer requested a variation to the original contract,
and it was agreed that the contract price would be increased by
Tk.900,000. The total estimated cost of this extra work is
Tk.750,000.
4. By the end of 2010, certificates issued by quantity surveyors
indicated a 25% stage of completion.
Required: Determine the profit to date, based on: Option 1-
contract costs in proportion to estimated contract costs. Option2-
Percentage of the work certified
[Marks: (5+15) = 20]
Q .No.4.
(a) What do you mean by Impairment of reinsurance assets as per
IFRS 4.
(b) The account balance in the general fund of the Dhaka City
Corporation - South on June 30, 2012 are as follows: Taka
('000)
Cash in Hand
...............................................................................................................
500 Bank balances: Sonali bank STD
.......................................................................................................
60,000 Janata Bank STD
......................................................................................................
50,000 Agrani Bank Current A/C
........................................................................................
25,000 Dutch Bangla Bank Current A/c
..............................................................................
35,500
-
Page 28 of 66
CMA AUGUST -2012 EXAMINATION PROFESSIONAL LEVEL-II SUBJECT:
201.ADVANCED FINANCIAL ACCOUNTING-I.
Q. No. 4.(Contd.) FDR at BKB
.........................................................................................................
1,00,000 Holding Tax
Receivable........................................................................................
1,89,500 Notes
Payable........................................................................................................
33,500 Wages
Payable.....................................................................................................
21,500 Reserve for
Encumbrances...............................................................................
9,400 Estimated
Revenues....................................................................................
28,12,000 Revenues
......................................................................................................
28,30,100 Appropriations
...........................................................................................
.. 27,90,000
Expenditures...................................................................................................
27,94,600 Encumbrances
................................................................................................
9,400 The balances of the Revenue ledger are as follows: Drs. Crs.
Taka ('000) Taka ('000) Holding Taxes
........................................................................
21,50,000 21,67,000 City Corporation Taxes
......................................................... 5,10,000
5,01,500 Motor Vehicles Licenses
...................................................... 95,000
97,000 Interest on bank Accounts
.................................................... 22,000 23,100
Miscellaneous
......................................................................
35,000 41,500 Data from the expenditure ledgers are as follows:
Expenditure Budget Appropriation Taka ('000) Taka ('000) General
Government ....................................................
9,36,400 9,25,000 Police department
.......................................................... 5,50,000
5,55,000 Fire Department
............................................................
4,28,900 4,40,000 Streets & Roads
............................................................
4,15,000 4,00,000 Sanitation
.....................................................................
2,94,300 2,95,000 Public Welfare
............................................................
1,70,000 1,75,000 The Encumbrances balances in the expenditure
ledger are as follows: Taka ('000) General
government.................................................. 3,600
Fire Department
.................................................... 2,100
Sanitation....................................................................
3,700
Required:
i) Prepare a statement of Revenues and Expenditures - Budget
& Actual
ii) Prepare a Statement of Changes in Fund Balance assuming the
balance of fund at the beginning of the year was Tk.
37,00,00,000
iii) Prepare a Balance Sheet. [Marks: (5+15) = 20]
-
Page 29 of 66
CMA AUGUST -2012 EXAMINATION PROFESSIONAL LEVEL-II SUBJECT:
201.ADVANCED FINANCIAL ACCOUNTING-I.
Q .No.5.
(a) What do you mean by changes in accounting estimates as per
IFRS?
(b) Multi Ltd commenced trading three years ago, on 1 January
20X5. Its draft balance sheet at 31 December 20X7 and its final
balance sheets for the two previous years are as follows:
20X7 CUm
20X6 CUm
20X5 CUm
Non-current assets Property, plant and equipment Other
Assets
231 169
230 120
180 120
400 350 300 Current assets 800 800 800 Total Assets 1200 1200
1200 Capital Reserves
100 450
100 400
100 350
Non-current liabilities Current liabilities
550 200 450
500 200 450
450 200 450
Total Liabilities 1200 1150 1100
Additional information is available as follows: 1. The profit
for each of the three years was CU 50m. 2. The movements on
property, plant and equipment were as follows:
20X7 CUm
20X6 CUm
20X5 CUm
Brought forward Direct cost of additions Interest
capitalized
230 80 10
180 90 10
0 180 20
Depreciation
320 (89)
280 (50)
200 (20)
Carried forward 231 230 180 3. Property, plant and equipment is
depreciated at the rate of 10% of cost per annum. The directors now
believe that more relevant information would be provided if
interest was not capitalized, so the decision has been made to
change the accounting policy and to recognize all interest as an
expense in the year in which it is incurred. Prepare the revised
balance sheets at 31 December 20X7 and 20X6, together with extracts
from the statement of changes in equity for each of the two years
then ended.
[Marks: (5+15) = 20]
= THE END =
-
Page 30 of 66
THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA AUGUST-2012 EXAMINATION
PROFESSIONAL LEVEL-II SUBJECT: 202.MANAGEMENT ACCOUNTING
Time: Three hours Full Marks: 100
All questions are to be attempted. Show computations, where
necessary. Answer must be brief, relevant, neat and clean. Start
answering each question from a fresh sheet.
Q. No. 1. SG Company is a long-established food manufacturer
which produces semi-processed foods for fast-food outlets. While
for a number of years it has recognized the need to produce good
quality products for its customers, it does not have a formalized
quality management program. A director of the company has recently
returned from a conference, where one of the speakers introduced
the concept of Total Quality Management (TQM) and the need to
recognize and classify quality costs. Required: (a) Explain what is
meant by TQM and use examples to show how it may be introduced into
different
areas of SG Companys food production business. (b) Explain why
the adoption of TQM is particularly important within a JIT
production environment. (c) What roles do management accountants
play in TQM? (d) Explain four quality cost classifications, using
examples relevant to the businesses of SG Company.
[Marks: (5+5+4+6) = 20] Q. No. 2. Laws Stores Ltd. owns a large
out-of-town store selling sports equipment. For reporting and
control purposes it splits the business into four product groups:
Ball sports, Racquet sports, Water sports and Outdoor activities.
The board of directors is dominated by the Laws family who has
heard a rumor that one of the large quoted sports goods retailers
is seeking planning permission to build a new store nearby. The
board of Laws Stores Ltd. feels that to compete they may have to
decrease the prices of their products. For the forthcoming year,
before any price changes and implemented, budgeted information is
as follows:
Ball sports Racquet sports Water sports Outdoor activities.
(Tk.) (Tk.) (Tk.) (Tk.) Sales 800,000 400,000 250,000 150,000
Variable costs 500,000 260,000 190,000 126,000
Fixed costs of operating the store are budgeted to be Tk.
400,000. Price decreases are being contemplated as follows:
Average price decrease (%) Ball sports 10 Racquet sports 5 Water
sports 6 Outdoor activities 4
Although these price decreases are expected to be needed to
defend sales volume from the threat posed by new competition, the
directors believe that sales volume for Water sports and Outdoor
activities might even increase as a result of the lower prices
being proposed. In fact, the sales volume changes as a result of
the decrease in prices are expected to be as follows:
Ball sports Unchanged if prices are decreased by 10% Racquet
sports Unchanged if prices are decreased by 5% Water sports
Increase of 15% if prices are decreased by 6% Outdoor activities
Increase of 10% if prices are decreased by 4%
-
Page 31 of 66
CMA AUGUST-2012 EXAMINATION PROFESSIONAL LEVEL-II SUBJECT:
202.MANAGEMENT ACCOUNTING Q. No. 2.(Contd.) Required: (i) Calculate
the C/S ratio and breakeven sales revenue for the store before any
changes to product
selling prices. (ii) Calculate the effect upon profit of the
proposed price changes and suggest whether they should be
implemented. (iii) Discuss the other factors that should be
considered before implementing the proposed changes to
product prices. [Marks: (6+8+6) = 20]
Q. No. 3.
(a) Rightlight Ltd. is an advertising company and has been asked
to tender for a contract to increase public awareness of global
environmental issues as part of the governments commitment to
improving the countrys eco-footprint. Rightlight Ltd. believes that
the campaign work will take a period of six months.
Five advertising specialists would need to be recruited on an
annual salary of Tk. 45,000. A project manager would be needed to
coordinate the campaign. An existing project manager would be used
whose annual salary is currently Tk. 55,000. He would be expected
to devote 30% of his time on the new contract.
The new employees would have to go through an Environmental
Awareness training program in order to get approval to work on
government contracts. This would cost Tk. 3,000 per employee, but
it is anticipated that a grant of 20% towards this cost will be
available.
Alternatively, Rightlight Ltd. could subcontract the work (with
the governments agreement) to another company that it sometimes
uses for joint venture projects. It is anticipated that the
subcontract firm would demand a fee of Tk. 135,000 to undertake the
work.
Required:
(i) What is relevant cost? Are variable costs always relevant
costs? Explain.
(ii) What would be the relevant cost of labor for this
contract?
(b) Right-Tyres Ltd. has three depots selling car tyres. The
depots are based in N, L and M cities. The average selling price
per tyre is Tk. 25.
Budgets have been produced for the forthcoming period as follows
(Tk.): N L M Sales 2,000,000 1,500,000 2,500,000 Costs:
Purchase price of tyres 1,200,000 900,000 See below Wages and
salaries 250,000 220,000 358,000 Overheads 450,000 430,000 600,000
Total cost 1,900,000 1,550,000 See below
The average purchase price per tyre charged by suppliers is the
same for both the N and L depots. However, due to higher volume of
tyres purchased by the M depot, the M depot benefits from a 20%
discount compared to the price charged to the N and L depots.
The management of Right-Tyres Ltd. believes that some of the
overheads included in the above budgets would not be incurred if
the decision was taken to close any of the depots.
-
Page 32 of 66
CMA AUGUST-2012 EXAMINATION PROFESSIONAL LEVEL-II SUBJECT:
202.MANAGEMENT ACCOUNTING Q. No. 3.(Contd.)
At a recent board meeting, doubt was cast over the future of the
L depot given its budgeted loss of Tk. 50,000.
The percentages of overheads which are variable costs and would
not be incurred if a depot were to be closed differs with each
depot and are as follows:
Depot % N 25 L 15 M 20
If a depot were to be closed it is not expected that there would
be any major consequences upon the sales volumes achieved at the
remaining depots due to the geographical distances between the
depots. Required: (i) Discuss whether the L depot should be closed
purely on the basis of financial considerations. (ii) Assuming that
80% of wages and salaries at each depot are variable costs,
calculate the
number of tyres that must be sold by the whole company in order
to break-even. (For this requirement, assume that the L depot will
be kept open and that sales will be made at the depots in the ratio
used in the original budget.)
(iii) Discuss the key non-financial factors that should be
considered when making a decision to close part of a business such
as the L depot.
[Marks: (4+4+2+6+4) = 20] Q. No. 4.
(a) Eastern University is considering adding 100 more
undergraduate students, 25 in each entering class for the next four
years. The University Vice Chancellor argues that since there is
excess capacity in existing classes, no additional faculty will be
hired. Thus the teaching cost of these 100 additional students is
zero. Comment on the statement made by University Vice
Chancellor.
(b) Staly Company has two wholly owned Bangladesh-based
subsidiaries. One of these subsidiaries, B Ltd. manufactures
plastic toys which it sells to toy retailers. B Ltd. is about to
launch a new product but is unsure what price to charge. A firm of
consultants has estimated the level of demand at several different
prices. This information is as follows: Price (Tk.) 5 10 15 20 25
30 35 40 Level of demand (000 of units) 200 180 160 135 120 100 75
50
The cost of manufacturing the new toy has been estimated as
follows: Particulars of cost Taka per unit Direct Materials 2.00
Direct Labor 1.50 Variable overheads 2.50
Fixed costs associated with manufacturing the new toy are
expected to be Tk. 400,000 per annum. However, if production and
sales exceed 150,000 units fixed costs are expected to increase by
Tk. 50,000.
The second subsidiary, E Ltd. Assembles desktop computers using
components sourced from suppliers of keyboards, microchips,
monitors, speakers and so on. It sells these computers under its
own brand name through 150 of its own outlets in major shopping
centers throughout Dhaka. It is to commence selling a new computer
aimed at students. The management of E Ltd. believes that the price
and marginal revenue equations are as follows:
-
Page 33 of 66
CMA AUGUST-2012 EXAMINATION PROFESSIONAL LEVEL-II SUBJECT:
202.MANAGEMENT ACCOUNTING Q. No. 4.(Contd.)
Price equation: P = 20,000 0.01Q, where P is selling price per
computer and Q is sales quantity in units Marginal revenue (MR)
equation: MR = 20,000 0.2Q
The cost of manufacture is expected to be: Particulars of cost
Taka per unit Direct materials (bought-in components) 4,000 Direct
labor (assemble) 1,500 Variable overheads 500 Fixed overhead
(apportioned) 2,000
Required: (i) For B Ltd. determine the price that should be set
for the new toy in order to maximize profit. (ii) For E Ltd.
determine the price that should be set for the new computer under
two
circumstances. (1) To maximize profit for E Ltd. (2) To maximize
revenue for E Ltd.
(iii) Briefly explain what is meant by market skimming,
penetration pricing and market segmentation in the context of
product pricing.
(iv) Briefly discuss the typical issues that a company should
consider when setting selling prices for a new product about to be
launched.
[Marks: {4+(4+6+3+3)} = 20] Q. No. 5.
(a) Salespeople at a particular firm forecast what they expect
to sell next period. Their supervisors then review the forecasts
and make revisions. Those forecasts are used to set production and
purchasing plans. In addition, salespeople receive a fixed bonus of
20 percent of their salary if they exceed their forecasts.
Required:
Discuss the incentives of the salespeople to forecast
next-period sales accurately. Discuss the trade-off between using
the budget for decision making versus using it as a control
device.
(b) Urban Bank is a new small commercial bank operating in
Dhaka, Bangladesh. The bank limits interest rate risk by matching
the maturity of its assets to the maturity of its liabilities. By
maintaining a spread between interest rates charged and interest
rates paid, the bank plans to earn a small income. Management
establishes a flexible budget based on interest rate for each
department. The car loan department offers five-year loans. It
matches certificates of deposits against car loans. Given all the
uncertainty about government fiscal policy, management believes
that five-year savings interest rates could vary between 2 percent
and 16 percent for the coming year. The savings rate is the rate
paid on CD savings account. The loan rate is the rate charged on
auto loans. The following table shows the expected new demand for
fixed-rate, five-year loans and new supply of fixed-rate, five-year
savings accounts at various interest rates. There are no loans from
previous years. Note that the department maintains a 4 percent
spread between loan and savings rates to cover processing, loan
default, and overhead.
Loan rate (%) Savings rate (%) Loan demand Savings supply 6 2
Tk. 12,100,000 Tk. 4,700,000 7 3 Tk. 10,000,000 Tk. 5,420,000 8 4
Tk. 8,070,000 Tk. 8,630,000 9 5 Tk. 6,030,000 Tk. 9,830,000 10 6
Tk. 4,420,000 Tk. 11,800,000
-
Page 34 of 66
CMA AUGUST-2012 EXAMINATION PROFESSIONAL LEVEL-II SUBJECT:
202.MANAGEMENT ACCOUNTING
Q. No. 5.(Contd.)
The amount of new loans granted is always the lesser of the loan
demand and loan supply. For simplicity, this bank may lend 100
percent of deposits. Although rates are set nationally, the bank
may pay or charge slightly different rates to limit demand or boost
supply as needed in its local market.
The car loan department incurs processing, loan default, and
overhead expenses related to these accounts. The first two expenses
vary, depending on the taka amount of the accounts. The processing
expense is budgeted to be 1.5% of the loan accounts. Default
expense is budgeted at 1% of the amount loaned. Again, loans and
savings would ideally be the same. Overhead expenses are estimated
to be Tk. 30,000 for the year, regardless of the amount loaned.
The following table shows an actual income statement for the Car
loan department. Included are the actual loans and savings for the
same period.
Interest Income Tk. 645,766 Interest expense 314,360 Net
interest income 331,406 Fixed overhead 30,200 Processing expense
130,522 Default expense 77,800 Net Income Tk. 92,884 Loans Tk.
8,062,000 Deposits Tk. 8,123,000
Required:
(i) Calculate the processing, loan default, and overhead
expenses for each possible interest rate.
(ii) Create a budgeted income statement for five-year loans and
deposits for the Car loan department given a savings interest rate
of 4 percent. Remember to match supply and demand.
(iii) Calculate the variances and provide a possible
explanation. [Marks: {5+ (4+3+8)} = 20]
= THE END =
-
Page 35 of 66
THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA AUGUST-2012, EXAMINATION
PROFESSIONAL LEVEL-II SUBJECT: 203-COMMERCIAL AND INDUSTRIAL
LAWS
Time: Three hours Marks: 100
Answer any FIVE questions taking at least TWO from each Group A
and B Answer must be brief, relevant, neat and clean. Start
answering each question from a fresh sheet.
PART-A : COMMERCIAL LAWS
Q. No. 1. (a) All agreements are not contracts but all contracts
are agreements. Explain. (b) Differentiate between the terms
Misrepresentation and Fraud. (c) What are the rules of a valid
offer? (d) Mr. Sumon started self service system in his shop. Ms.
Suborna entered the shop, took a basket
and after taking articles of her choice into the basket reached
the cashier for payments. The cashier refuses to accept the price.
Can Mr. Sumon be compelled to sell the said articles to Ms
Suborna?
[Marks: (4 x 5) = 20] Q. No. 2. (a) Discuss Caveat Emptor with
its exceptions. (b) Risk Prima Facie passes with property- Discuss
with at least two examples. (c) Differentiate between Right of Lien
and Right of stoppage in transit.
[Marks: (8+6+6) = 20] Q. No. 3. (a) What are the essential
characteristics of a cheque. (b) Discuss the proposes, meaning and
types of crossing a cheque. (c) Distinguish between negotiation and
assignment.
[Marks: (8+6+6) = 20] Q. No. 4. Who is the holder and who is the
holder in due course of a cheque? Discuss the various privileges of
a holder in due course.
[Marks: 20] Q. No. 5. (a) What matters can and cannot be
referred to arbitration? (b) Whats the difference between a general
crossing and a special crossing of a cheque? (c) Whats the
difference between Actual breach of contract and Anticipatory
breach of contract?
[Marks: (8+6+6) = 20]
-
Page 36 of 66
CMA AUGUST-2012, EXAMINATION PROFESSIONAL LEVEL-II SUBJECT:
203-COMMERCIAL AND INDUSTRIAL LAWS
PART-B : INDUSTRIAL LAWS Q. No. 6. (a) What do you mean by
Public Utility Service? How it differs from Commercial
establishment. (b) Is it compulsory to maintain service book for
the workers. What are the contents of a service
book? (c) In what circumstances the employer may resort to stop
of work and what are its procedures.
[Marks: (7+7+6) = 20] Q. No. 7. (a) How the relationship of an
employer and an employee can be determined as pet BLA-2006? (b) Can
a probationer be reverted to his former post? (c) Define Industrial
Dispute. What are the ingredients of an Industrial Dispute?
[Marks: (7+3+10) = 20] Q. No. 8. (a) What are the provisions for
Maternity Benefits, under the Bangladesh Labor Act, 2006. What
will
be the impact in the Garment Factory for enhancement of
Maternity Leave. (b) What are the precautions to be taken in case
of fire and precautions to be taken against
dangerous fumes in a factory? [Marks: (10+10) = 20]
Q. No. 9. State the provisions of welfare of workers as
described in the Bangladesh Labour Act 2006.
[Marks: 20] Q. No. 10. (a) Discuss the provision of closure of
shops with exceptions a