THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

CMA APRIL, 2014 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.
Comparative balance sheets for Eddie Murphy Company are presented below:
Eddie Murphy Company
Comparative Balance Sheets on December 31
Assets
Cash and cash equivalent
Accounts Receivable
Marketable securities
Inventories
Prepaid insurance
Land and buildings
Equipment
Treasury stock (at cost)
Discount on bonds payable
Total
Liabilities and Stockholders Equity
Allowance for doubtful accounts
Accumulated depreciation on buildings
Accumulated depreciation on equipment
Accounts payable
Notes payable (current)
Expense payable
Tax payable
Un-earned revenues
Notes payable long term
Bonds payable
Deferred income tax liability
Common Stock
Retained earnings appropriated
Retained Earnings
Paid in capital in excess of par
Total

2012
Tk. 12,21,000
8,00,000
1,05,000
16,00,500
13,750
10,72,500
15,95,000
27,500
46,750
64,82,000

2011
Tk. 2,75,000
5,50,000
2,20,000
16,50,000
11,000
10,72,500
9,35,000
55,000
49,500
48,18,000

30,000
1,44,375
2,18,625
3,02,500
3,85,000
99,000
1,92,500
5,500
2,20,000
13,75,000
2,58,500
19,76,700
2,85,500
4,32,300
5,56,500
64,82,000

27,500
1,23,750
1,51,250
3,30,000
1,10,000
47,850
55,000
49,500
3,30,000
13,75,000
2,93,150
11,00,000
1,81,500
6,16,000
27,500
48,18,000

Income Statement
For the year ended on December 31, 2012
Income before extra-ordinary items
Add: gain on marketable securities

Tk. 3,96,000
66,000
4,62,000

Less: Loss on sale of equipment

Decline in value of securities

5,500
22,000
27,500
4,34,500
1,92,500
Tk. 2,42,000

Income before income tax

Less: income tax
Net income
Page 1 of 5

CMA APRIL, 2014 EXAMINATION

PROFESSIONAL LEVEL-I
SUBJECT : 101. INTERMEDIATE FINANCIAL ACCOUNTING.
Q. No. 1. (Contd.)
Additional information:
1.
All purchases and sales were on account.
2.
Equipment with an original cost of Tk. 82,500 was sold for Tk.38,500.
3.
A six months note payable for Tk. 2,75,000 was issued toward the purchase of new
equipment.
4.
Long term notes payable requires the payment of Tk. 1,10,000 per year plus interest until paid.
5.
Treasury stock was sold for Tk. 5,500 more than its costs and the surplus was created to
additional paid in capital in excess of par.
6.
Equipment was overvalued, extending its useful life at a cost of Tk. 33,000. The cost was
debited accumulated depreciation equipment.
7.
During the year a 30% stock dividend was declared and issued. At the time there were
1,10,000 shares of Tk.10 per common stock outstanding. However 1,100 of those shares
were held as treasury stock at the time were prohibited from the participation in the stock
dividend. Market price was Tk.15 per share at the time the dividend was declared.
8.
A cash dividend of Tk. 44,000 was paid during the year.
9.
Additional 55,000 shares of common stock were sold in cash at Tk. 1,155,000.
10. Selling and general expenses include: building depreciation Tk. 20,625, equipment depreciation
Tk. 1,38,875, doubtful accounts expenses Tk. 22,000, interest expenses Tk. 99,000.
Required: Prepare a statement of cash flows for 2012 using the indirect method.
[Marks: 20]
Q. No. 2.
(a) What do you understand by earnings quality from the view point of income statement?
Why does a company buyback its own shares?
(b) The shareholders equity section of the balance sheet of Square Textile included the
following accounts at December 31, 2009:
Shareholders Equity
Tk.
Preferred Stock, 10%, Tk. 100 par 10,000 shares authorized and 3,000
3,00,000
shares issued
Common stock, Tk. 10 par 100,000 shares authorized, 40,000 issued
400,000
Paid-in capital excess of par, preferred
50,000
Paid-in capital excess of par, common
75,000
Retained earnings
5,50,000
Total shareholders equity
13,75, 000
During 2010, the company involved in the following transactions concerning stockholders equity:
i)
On May 1, the board of directors declared a cash dividend of Tk. 5 per share on
common stock payable on June 2 to shareholders of record May 15.
ii)
Purchased 2,000 shares of its own outstanding common stock Tk.40 per share on June
30. The company uses the cost method for recording treasury stock.
iii) Issued 2000 shares of preferred stock at Tk. 150 per share on September 1.
iv) Reissued 1000 shares in treasury for equipment, the fair market value of equipment is
not determinable but the common shares of the company are currently selling in the
market at Tk. 35 per share.
v)
On October 1, the company declared a 10% stock dividend on the outstanding common
stock when the fair market value of stock is Tk. 45 per share.
vi) Issued the stock dividend on October 30.
vii) On December 1, the board of directors declared the cash dividend of Tk 5 per common
stock, and Tk.10 per share on preferred stock, payable on January 5, 2011 to the
shareholders of record December 14.
Required:
1)
Prepare journal entries to record the transactions.
2)
Prepare the December 31, 2010 stockholders equity section of the balance sheet.
[Marks: (4+16) = 20]
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CMA APRIL, 2014 EXAMINATION

PROFESSIONAL LEVEL-I
SUBJECT : 101. INTERMEDIATE FINANCIAL ACCOUNTING.
Q. No. 3.
(a) XYZ Corporation carries an account in its general ledger called investments, which
contained the following debits for investment purchases and no credits.
Feb. 1,2014
April 1
July 1

Jordy Company common stock, Tk.100 par, 200shares

U.S. government bonds, 11%, due April, 2024, interest
payable April 1 and October 1, 100 bonds at Tk.1,000 each
Driver Company 12% bonds, par Tk.50,000, dated March
1, 2010, purchased at par plus accrued interest, interest
payable annually on March 1, due March 1, 2031

Tk.37,400
1,00,000
52,000

Required:
(i)
Prepare the entries necessary to classify the amounts into proper accounts,
assuming that all the securities are classified as available-for-sale.
(ii) Prepare the entry to record the accrued interest on December 31, 2014.
(iii) The fair values of the securities on December 31, 2024, were:
Jordy Company common stock
Tk. 33,800 (1% of total shares)
U.S. government bonds
1,24,700
Driver Company bonds
58,600
What entry or entries, if any, would you recommend be made?
(iv) The U.S. government bonds were sold on July 1, 2015, for Tk.119,200 plus accrued
interest. Give the proper entry.
(v) Now assume XYZS' investment in Jordy Company represents 30% of Jordy's
shares. Prepare the 2014 entries for the investment in Jordy stock. In 2014, Jordy
declared and paid dividends of Tk.9,000 (on September 30) and reported net income
of Tk.30,000.
(b) A Company begins trading on 1 January 2013 and sales of Tk.1,50,000 during the years
to 31 December 2013.At 31 December there are receivables of Tk.12,000.Of these it is
uncertain where Tk. 5,000 will be paid. Exercise your prudence to solve the matter.
(c) PMG company issued 12% bonds on June 30, 2004 with a par value of Tk.800,00 due in
20 years. They were issued at Tk. 98 and were callable at Tk.104. at any date after June
30, 2012. Because of lower interest rates and a significant change in the companys credit
rating, it was decided to call the entire issue on June 30, 2013, and to issue the new
bonds. New 10% bonds were sold in the amount of Tk. 1,000,000 at Tk.102. They mature
in 20 years. The company uses straight-line amortization. Interest payment dates are
December 31 and June 30.
Required:
i)
Prepare journal entries to record the retirement of the old issue and the sale of the new
issue on June, 2013.
ii) Prepare the entry required on December 31, 2013 to record the payment of the first 6
months interest and the amortization of premium on the bonds.
[Marks: (4+8+8) = 20]
Q. No. 4.
(a) Define Revenue as per IAS-18.
(b) A Tk. 210,000 fixed-price contract is entered into for the provision of services. At the end
of 2007, the first accounting period, the contract is thought to be 33% complete and costs
of Tk. 45,000 have been incurred in performing that 33% of the work.
Requirements:
Calculate the revenue to be recognized in 2007 on the alternative assumptions that:
(a) The costs to complete are reliably estimated at Tk. 90,000; and
(b) The costs to complete cannot be reliably estimated and it is thought that Tk. 40,000
of the costs incurred are recoverable from the customer.
Fill in the proforma below:
(a) Cost to complete are Tk. 90,000.
(b) Cost to complete cannot be estimated reliably.
Page 3 of 5

CMA APRIL, 2014 EXAMINATION

PROFESSIONAL LEVEL-I
SUBJECT : 101. INTERMEDIATE FINANCIAL ACCOUNTING.
Q. No. 4. (Contd.)
(c)

LATENTILE LTD
Latentile Ltd is a newly-formed company, which uses a chemical process to manufacture a
revolutionary new roof covering, which it sells at a markup of 25% on cost. Its inventories
consist of raw material, work in progress and finished goods, and at the end of its first year
of trading it is having problems valuing inventories.
You ascertain the following information:
(1) Raw material:
(i) The process needs at least 100,000 kgs of clay to continue working, but a
physical inventory count reveals that the machinery contains 108,000 kgs.
(ii) The original cost of the initial 100,000 kgs to set up the process was 30p per kg
and you find an invoice to show that the last consignment of 20,000 kgs cost 31p
per kg. All other consignments in the year (a total of 200,000 kgs) cost 32p per kg.
(2) Work in progress:
(i) The work in progress is currently all 60% complete and you discover that there are
50,000 units currently going through the process.
(ii) The total number of complete units for the period was, as anticipated, 800,000.
(iii) The costs for the process for the period were as follows.
Tk.000
Raw materials
200
Direct labour
242
Factory overheads
191
Administrative expenses attributable to production
114
Distribution costs
90
(3) Finished Goods:
(i) There were 70,000 units in inventories.
(ii) Of (i) above, it was intended to sell 20,000 units at 75p per unit, a discount of one
third on normal selling price, in a future promotional campaign (a further 10p per
unit distribution costs is to be incurred).
Required:
(a) Explain how BAS 2 Inventories applies the accrual and the going concern bases of
accounting.
(b) For each of the above categories of inventory, suggest a method of valuation and show
the value as it would appear in the balance sheet.
(c) If the information regarding costs for the period were not available, suggest an alternative
method of valuing finished goods.
[Marks: (8+8+4) = 20]
Q. No. 5.
(a) The objective of IAS 36 Impairment of assets is to prescribe the procedures that an entity
applies to ensure that its assets are not impaired.
Required:
Explain what is meant by an impairment review. Your answer should include reference to
assets that may form a cash generating unit.
Note: you are NOT required to describe the indicators of an impairment or how impairment
losses are allocated against assets.
(b) (i)Telepath acquired an item of plant at a cost of $800,000 on 1 April 2010 that is used to
produce and package pharmaceutical pills. The plant had an estimated residual value of
$50,000 and an estimated life of five years, neither of which has changed. Telepath uses
straight-line depreciation. On 31 March 2012, Telepath was informed by a major customer
(who buys products produced by the plant) that it would no longer be placing orders with
Telepath. Even before this information was known, Telepath had been having difficulty
finding work for this plant. It now estimates that net cash inflows earned from the plant for
the next three years will be:
Page 4 of 5

CMA APRIL, 2014 EXAMINATION

PROFESSIONAL LEVEL-I
SUBJECT : 101. INTERMEDIATE FINANCIAL ACCOUNTING.
(c)

Q. No. 5. (Contd.)
$000
Year ended: 31 March 2013
220
31 March 2014
180
31 March 2015
170
On 31 March 2015, the plant is still expected to be sold for its estimated realisable value.
Telepath has confirmed that there is no market in which to sell the plant at 31 March 2012.
Telepath's cost of capital is 10% and the following values should be used:
value of $1 at:
$
end of year 1
0.91
end of year 2
0.83
end of year 3
0.75
(ii) Telepath owned a 100% subsidiary, Tilda, that is treated as a cash generating unit.
On 31 March 2012, there was an industrial accident (a gas explosion) that caused
damage to some of Tilda's plant. The assets of Tilda immediately before the accident
were:
$000
Goodwill
1,800
Patent
1,200
Factory building
4,000
Plant
3,500
Receivables and cash
1,500
12,000
As a result of the accident, the recoverable amount of Tilda is $6.7 million.
The explosion destroyed (to the point of no further use) an item of plant that had a carrying
amount of $500,000.
Tilda has an open offer from a competitor of $1 million for its patent. The receivables and
cash are already stated at their fair values less costs to sell (net realisable values).
Required:
Calculate the carrying amounts of the assets in (i) and (ii) above at 31 March 2012 after
applying any impairment losses. Calculations should be to the nearest $1,000.
[Marks: (5+15) = 20]
= THE END =

Page 5 of 5

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

CMA APRIL, 2014 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.
Moyuri Enterprise sells packages of blank video tapes to its customers. It also rents out tape of
movies and supporting events. It purchases packages of video tapes from Sony Trading at
Tk.14 a package. Sony pays all incoming freight to Moyuri Enterprise. No incoming inspection is
necessary because Sony has a superb reputation for delivering quality merchandise. Annual
demand is 13,000 packages at a rate of 250 packages per week. Moyuri Enterprise requires a
15% annual return on investment. The purchase order lead time is two weeks. Ordering cost per
order is Tk. 200. Insurance, handling, breakage and so on per year is Tk. 3.10.
Required: Calculate:
a)
Economic Order Quantity.
b)
Annual relevant total cost.
c)
Number of deliveries in a year.
d)
Time to place new order if the lead time is 2 weeks and 250 packages is sold per week.
e)
Considering the above information and also assume that 1 of 7 different levels of demand
will occur over the 2 weeks purchase order lead time and cost of stock out is Tk. 4 per
package, calculate optimum safety stock;
Total Demand
200
300
400
500
600
700
800
for two weeks
units units units units units units units
Probability
0.06 0.09 0.20 0.30 0.20 0.09 0.06
f)
If that relevant ordering cost per purchase order is Tk. 100 instead of Tk. 200, calculate
the cost of this prediction error (Compare with the EOQ as computed in requirement a).
[Marks: (3+3+2+2+7+3) = 20]
Q. No. 2.
(a) Jahan International is a manufacturing firm that uses job-order costing. At the beginning of
the year 2013, the company's inventory balances were as follows:
Raw materials................................ Tk. 36,000
Work in process ............................ Tk. 41,000
Finished goods .............................. Tk. 104,000
The company applies overhead to jobs using a predetermined overhead rate based on
machine hours. At the beginning of the year, the company estimated that it would work
21,000 machine hours and incurs Tk. 210,000 in manufacturing overhead cost. The
following transactions were recorded for the year:
a)
Raw materials were purchased, Tk. 346,000.
b)
Raw materials were requisitioned for use in production, Tk. 338,000 (Tk. 302,000
direct and Tk. 36,000 indirect).
c)
The following employee costs were incurred: direct labor Tk. 360,000; indirect labor
Tk. 68,000; and administrative salaries Tk. 111,000.
d)
Selling costs, Tk. 153,000.
e)
Factory utility costs, Tk. 29,000.

Page 1 of 4

CMA APRIL, 2014 EXAMINATION

PROFESSIONAL LEVEL-I
SUBJECT : 102. COST ACCOUNTING.
Q. No. 2. (contd..)
f)
g)
h)
i)
j)

Depreciation for the year was Tk. 102,000 of which Tk. 93,000 is related to factory
operations and Tk. 9,000 is related to selling and administrative activities.
Manufacturing overhead was applied to jobs. The actual level of activity for the year
was 19,000 machine-hours.
The cost of goods manufactured for the year was Tk. 870,000.
Sales for the year totaled Tk. 1,221,000 and the costs on the job cost sheets of the
goods that were sold totaled Tk. 855,000.
The balance in the Manufacturing Overhead account was closed out to Cost of
Goods Sold.

Required:
Prepare the appropriate journal entry for each of the items above (a. through j.). You can
assume that all transactions with employees, customers, and suppliers were conducted in cash.
(b)

Rock Star, Inc., which uses a job-costing system, began business on January 1, 2013 and
applies manufacturing overhead on the basis of direct-labor cost. The following information
relates to 2013:
Budgeted direct labor and manufacturing overhead were anticipated to be Tk. 200,000
and Tk. 250,000, respectively.
Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct
material and direct labor:
Job #
Direct Materials
Direct Labor
1
Tk. 145,000
Tk. 35,000
2
320,000
65,000
3
55,000
80,000
Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% of
cost. Job no. 3 remained in production.
Actual manufacturing overhead by year-end totaled Tk. 233,000. Rock Star adjusts all
under- and over-applied overhead to cost of goods sold.

Required:
i.
Compute the company's predetermined overhead application rate.
ii.
Compute Rock Star's ending work-in-process inventory.
iii.
Determine Rock Star's sales revenue.
iv.
Was manufacturing overhead under- or over-applied during 2013? By how much?
v.
Present the necessary journal entry to handle under- or over-applied manufacturing
overhead at year-end.
vi.
Does the presence of under- or over-applied overhead at year-end indicate that Rock
Star's accountants made a serious error? Briefly explain.
[Marks: (10+10) = 20]
Q. No. 3.
Tusuka Corporations factory is divided into four departments, two producing departments, (i)
cutting and (ii) finishing, and two service departments (iii) building and grounds and (iv) factory
administration departments.

Page 2 of 4

CMA APRIL, 2014 EXAMINATION

PROFESSIONAL LEVEL-I
SUBJECT : 102. COST ACCOUNTING.
Q. No. 3. (contd..)
Service departments cost are allocated to producing departments (building and grounds based
on square feet and factory administration based on direct labour hours). In calculating
predetermined factory overhead rates, machine hours are used as the base in cutting and direct
labour hours as the base in finishing, the following data are relevant:
Particulars
Cutting
Finishing
Buildings ground
Factory
administration
Budgeted factory overhead
Tk. 100,000 Tk. 150,000
Tk. 60,000
Tk. 42,000
Direct labour hours
50,000
25,000
Machine hours
106,000
Square feet
50,000
30,000
1,000
2,000
Following data pertain to Job No. 302.
Cutting:
Direct material
Direct labour hours 3 hours @ Tk. 6.00
Machine hours
Finishing:
Direct material
Direct labour hours 5 hours @ Tk. 8.00

Tk. 45.00
Tk. 18.00
7
Tk. 10.00
Tk. 40.00

Required:
(a) Calculate predetermine factory overhead rate for the producing departments.
(b) Determine the total cost of Job No. 302.
[Marks: (10+10) = 20]
Q. No. 4.
(a) When ABC is used, why are manufacturing overhead costs often shifted from high volume
products to low volume products?
(b) The Maori Noveltry company makes a variety of souvenirs for visitors to New Zealand.
The Otago division stuffed Kiwi birds using a highly automated operation. A recently
installed activity-based-costing system has four activity centers.
Activity Center
Cost Driver
Cost per driver unit
Materials receiving and handling
Kilograms of materials
Tk. 1.2 per kg
Production set-up
Number of set-ups
Tk. 60 per set-up
Cutting, sewing and assembly
Number of units
Tk. 40 per unit
Packing and shipping
Number of orders
Tk. 10 per order
Two products are called Standard Kiwi and Giant Kiwi. They require 0.2 kg and 0.4 kg of
materials, respectively, at a material cost of Tk. 5.3 per kg for standard kiwi and Tk. 8.2 per kg
for giant kiwi. One computer-controlled assembly line makes all products. When a production
run of a different product is started, a set-up procedure is required to reprogram the computers
and make other changes in the process. Normally, 600 standard kiwis are produced per set-up,
but only 240 giant kiwis are produced per set-up. Products are packed and shipped separately,
so a request from a customer for, say, three different products is considered as three different
orders. The Auckland Zoo Gift Shop just placed an order for 100 standard kiwi and 50 giant
kiwis.
Page 3 of 4

CMA APRIL, 2014 EXAMINATION

PROFESSIONAL LEVEL-I
SUBJECT : 102. COST ACCOUNTING.
Q. No. 4. (contd..)
Required:
i.
Compute the cost of products shipped to Auckland Zoo Gift Shop.
ii.
Suppose the products made for the Auckland Zoo Gift Shop required AZ to be printed
on each kiwi. Because of the automated process, printing the initials takes no extra time
or material, but it requires a special production set-up for each product. Compute the
cost of products shipped to Auckland Zoo Gift Shop.
iii.
Explain how the activity-based-costing system helps Maori Noveltry to measure costs of
individual products or orders better than a traditional system that allocates all nonmaterial costs based on labor hour.
[Marks: 4+(9+4+3) = 20]
Q. No. 5.
You are employed by SQ Company, a manufacturer of digital watches. The companys chief
financial officer is trying to verify the accuracy of the ending work in process and finished goods
inventories prior to closing the books for the year. You have been asked to assist in this
verification. The year-end balances shown on the companys books are as follows:
Units
Costs
Work in process, December 31 (50% complete as to
labor and overhead)
300,000
Tk.. 660,960
Finished goods, December 31
200,000
1,009,800
Materials are added to production at the beginning of the manufacturing process, and overhead
is applied to each product at the rate of 60% of direct labor cost. There was no finished goods
inventory at the beginning of the year. A review of the companys inventory and cost records
has disclosed the following data, all of which are accurate:
Costs
Units
Materials
Labors
Work in process, January 1
(80% complete as to labor and overhead)
200,000
200,000
315,000
Units started into production
1,000,000
Cost added during the year:
Materials cost
1,300,000
Labor costs
1,995,000
Units completed during the year
900,000
The company uses the weighted average cost method.
Required:
a)
Determine the equivalent units and costs per equivalent unit for materials, labor and
overhead for the year.
b)
Determine the amount of cost that should be assigned to the ending work in process and
finished goods inventories.
c)
Prepare the necessary correcting journal entry to adjust the work in process and finished
goods inventories to the correct balances as of December 31.
d)
Determine the cost of goods sold for the year assuming there is no under or over applied
overhead.
[Marks: (6+4+5+5) = 20]
= THE END =

Page 4 of 4

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

CMA APRIL, 2014 EXAMINATION
PROFESSIONAL LEVEL-I
SUBJECT: 103. MANAGEMENT AND MARKETING MANAGEMENT.
Time: Three hours

Answer THREE questions from each part.

Answer must be brief, relevant, neat and clean.

Start answering each question from a fresh sheet.

Full Marks: 100

PART A: MANAGEMENT (TOTAL MARKS 50)

Q.No.1.
(a) What do you mean by strategic planning?
(b) How would you formulate corporate level strategy and business level strategy?
(c) If you are given the responsibility for formulating strategy how would you use SWOT
analysis in your strategy formulation process? Explain.
[Marks: (5+5+6) = 16]
Q. No. 2.
(a) Suppose you are appointed as the GM finance & Accounts (F & A) in GP Limited what
role you must play? Why? Explain.
(b) You subordinate Manager (F & A) needs some skill to perform his duty efficiently. What
skills he must have to discharge his duties? Discuss.
(c) How would GP limited be benefited from your role & your subordinates skill? Explain.
[Marks: (5+5+6) = 16]
Q. No. 3.
(a) What is meant by delegation of authority?
(b) Why do you need to delegate your authority as the CFO of a group of companies?
Discuss.
(c) What steps would you take while delegating your authority to your subordinate? Explain.
[Marks: (4+5+7) = 16]
Q. No. 4.
(a) Why is decision making often described as the essence of a managerial job?
(b) Which of the programmed and non-programmed decision making needs more managerial
creativity? Why? Discuss.
(c) Name five decision problems and identify with reasons, if there are programmed or nonprogrammed decisions.
[Marks: (4+7+5) = 16]
Q. No. 5.
(a) What is Supply Chain Management (SCM)?
(b) If you are appointed as the Supply Chain Manager what functions you are expected to
perform? Discuss.
(c) How does Supply Chain Management increase operational efficiency of a company?
Explain.
[Marks: (3+8+5) = 16]

* Two marks are reserved for neatness and relevance.

Page 1 of 2

CMA APRIL, 2014 EXAMINATION

PROFESSIONAL LEVEL-I
SUBJECT: 103. MANAGEMENT AND MARKETING MANAGEMENT.
PART B: MARKETING MANAGEMENT (TOTAL MARKS 50)
Q. No. 6.
(a) How would you say if your company is the market leader in the industry?
(b) If you are the runner-up what marketing strategy would you take to be the market leader?
(c) Suppose your company is preparing to go global what marketing strategies you
recommended? Why?
[Marks: (5+5+6) = 16]
Q. No. 7.
(a) What do you mean by consumer buying behavior? Discuss the factors influencing
consumers buying behavior.
(b) Discuss the strategies how accountants can influence consumers buying behavior.
(c) Describe the steps that the consumers follow in their buying behavior.
[Marks: (5+5+6) = 16]
Q. No. 8.
(a) Describe the major pricing strategies for a new product.
(b) Discuss why and how company adjust their price to different types of customers and
geographic locations?
(c) Why would a company consider cutting its prices? Discuss.
[Marks: (5+6+5) = 16]
Q. No. 9.
(a) Define marketing information systems and discuss its parts.
(b) Explain how changes in the demographic and economic environment affect marketing
decision.
(c) Define sustainable marketing and discuss its importance in todays competitive age.
[Marks: (4+6+6) = 16]
Q. No. 10.
Write short notes on any FOUR of the following:
(a) Marketing intelligence;
(b) Marketing logistics;
(c) Loss leader;
(d) Market Report;
(e) Sales Promotion;
[Marks: (4+4+4+4) = 16]
* Two marks are reserved for neatness and relevance.
= THE END =

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THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

CMA APRIL, 2014 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) Why student of CMA should study information systems? Explain with example.
(a) What are the most common types of computer-based Information Systems used in
business organizations today?
(b) What are some of the challenges and potential problems of implementing an ERP system
for a large multinational corporation?
[Marks: (7+6+7) = 20]
Q. No. 2.
(a) Discuss, in brief, about contemporary approaches to Information Systems.
(b) What ethical, social and political issues are raised by Information Systems?
(c) What is Vendor Certification?
(d) What are the differences between MIS and DSS?
[Marks: (4 x 5) = 20]
Q. No. 3.
(a) What is SQL? Name and describe the three most SQL commands.
(b) How can you differ between Database software with Spreadsheet software?
(c) Write short note on Data Mining, Data Warehouse and Database Server.
(d) W hat is a hypermedia database? How does it differ from a traditional database? How is it
used for the web?
[Marks: (5+4+5+6) = 20]
Q. No. 4.
(a) What is Data havens?
(b) Discuss about 4G- Wireless Communications.
(c) What does e means for e-commerce? How do you differentiate between commerce and
e-commerce?
(d) Discuss about several ways to access the Internet.
[Marks: (4 x 5) = 20]
Q. No. 5.
(a) What is a group decision-support system (GDSS)? How does it differ from a DSS?
(b) What is natural language processing? What are the three levels of voice recognition?
(c) What are the sources of viruses and how it spread? How can you protect your computer
from viruses?
[Marks: (6+7+7) = 20)]
Q. No. 6.
(a) Discuss some of the most important applications of AI in business?
(b) What are intelligent agents?
(c) Define Computer crimes with two examples.
(d) Explain, in brief, the procedures of auditing information systems to control
computer crimes.
[Marks: (4 x 5) = 20]
= THE END =
Page 1 of 1