B.B.A. (Semester II) (CBCS) Examination Nov/Dec-2018
COST ACCOUNTING
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Use of Calculator is allowed.
Q.1 Choose correct alternatives: 07
According to ABC analysis, the category items are large
in number but small in value.
A B
C All
At EOQ, total of ordering and carrying cost is
Maximum Minimum 1
Average Recurring
Aggregate of indirect material, indirect labour and indirect expenses is
called
Prime Cost Overheads
Work cost Manufacturing cost
Depreciation is apportioned on the basis of
Area Sq. ft. Value of machine
Number of workers Light points
level, fresh order of material is to be placed
Maximum Reorder
Minimum Danger
Weighted average price is calculated by dividing the total cost of
materials, by total of those materials in stock.
Amount Quality
Quantity Price
Simple average the average of the of the consignments
lying in store.
Amounts Qualities
Quantities Prices
Fill in the Blanks 07
If recovered overheads are more than actual overheads incurred, then it
is case of absorption.
overheads are proportionately affected by change in level
of output
A complete list of all materials required for a job is known as
Bin Card is maintained by
In case of falling prices, the method of issue of material help
in saving income tax to some extent.
When materials are issued at prevailing market rates, method
of issue of material is suitable.
level ROL [normal of consumption X normal delivery period]
Page 2 of 3
SLR-CI-8
Q.2 Write Short Notes on (any two) 14
Stock Levels
Methods of pricing issues
Methods of labour remuneration and bonus plans
Q.3 Attempt any 2 14
Compute Stock levels from the following
Cost of placing a purchase order is Rs. 20
Number of units to be purchased in a year 5000
Purchase price per unit Rs 50
Annual cost of storage per unit Rs 5
Lead time average 10 days, Maximum 15 days, Minimum 6 days
Rate of Consumption per day Maximum 20 units, Minimum 15 units
Prepare store ledger using weighted average method
April 1 Purchase 200 kg Rs. 10 per kg
April 6 Purchase 300 kg Rs. 12 per kg
April 9 Issue 250 kg
April 10 Purchase 100 kg Rs. 11 per kg
April 15 Issue 200 kg
April 18 Purchase 500 kg Rs. 13 per kg
April 24 Issue 300 kg
Fixed cost Rs. 20,000, Profit Rs.10,000, Sales Rs. 50,000
You are require to calculate
Break even sales
Sales require to earn profit of Rs.20,000
Q.4 A factory has three production departments and two service departments.
The following information relates to overheads
14
Production Dept. Service Dept.
X Rs. 6900 A Rs. 3150
Y Rs. 10950 B Rs. 2550
Z Rs. 6450
Expenses of service Dept. are apportioned as under
Dept. X Y Z A B
A 30% 40% 20% 10%
B 30% 20% 30% 20%
You are required to re-apportion the overheads of service departments.
OR
Particulars 2017 2018
Sales Rs. 5,00,000 10,00,000
Profit Rs. 1,00,000 3,00,000
14
You are require to calculate
P V Ratio
Fixed cost
Break even Sales
Sales to earn profit of Rs. 2,50,000
Profit when sales are Rs. 12,00,000
Margin of safety for 2018
Variable cost for 2017
Page 3 of 3
SLR-CI-8
Q.5 The production department of a factory provided a monthly budget as under 14
Material used Rs. 45,000
Direct wages Rs. 60,000
Labour hours worked 15,000 hours
Machine hours worked 10,000 hours
Overheads chargeable to department Rs. 90,000
Find out the overhead recovery rate based on at least five different methods
of absorption of overheads.
OR
Standard time to produce 1 unit 30 minutes 14
Rate per hour Rs 25
Mr. X produced 100 units in a 45 hour week
Calculate earning of Mr. X using
Halsey Premium Plan
Rowan Premium Plan
Barth Sharing Plan