Write a brief note on "Costing as an Aid to Management".

Explain the concept of Fixed costs and 5 Variable costs. What is the significance of such classification

2. Describe the steps usually followed in the 10 purchase of raw material by a manufacturing concern.

What do you mean by Absorption of overheads? Explain anyone method of overhead absorption with an example.

Distinguish between Job Costing and Contract Costing.

A firm is engaged in the production of a product x. It provides the following cost information for a month and asks you to prepare its cost sheet
Raw material consumed RS 2,56,000
Direct wages paid RS 54,000
Works overheads: 30% of wages
Office overheads: 10% of works cost
Gross output during the month: 1000 units
Rejection: 10% of Gross output
Sale value of rejected units RS 2,500
Prepare the necessary cost sheet.

Why do you need reconciliation of cost and financial accounts Explain.

From the following information, calculate
Economic Order Quantity
Annual usage: 6000 units
Cost of Material per unit RS 2.50
Ordering cost per order RS 15.00
Annual carrying cost of one unit 20% of inventory value.

Work out the Machine Hour Rate for the following machine
Cost of Machine RS 90,000
Installation expenses RS 10,000
Working life: 10 years
Working Hours: 2000 per year
Repair charges 50% of depreciation
Power 10 units per hour 1.50 per unit
Lubricating oil RS 12 per day of 8 hours
Consumable stores: RS 10 per day of 8 hours
Wages of operator RS 200 per day

6. M/s Buildcon Ltd. undertook a contract construct 15 a multi-storey building on 1-5-2013. The contractee agreed to pay 80% of the work certified and retain 20% till the completion of contract. The details of the expenditure and other details during the period 2013-14 are given below. The contract price was RS 50,00,000.

Raw materials used RS 9,00,000
Labour paid RS 7,50,000
Carriage RS 37,000
Administration cost RS 2,43,000
Wages payable RS 30,000
Work certified RS 29,00,000
Work uncertified RS 2,00,000
Cash received 80% of work certified

You are required to prepare Contract Account, Contractee's Account for the year 2013-14 and the Balance sheet (Assets side) as would appear in contractor's books as on 31-3-2014.