B.B.A. (Semester (CBCS) Examination Nov/Dec-2018
COST MANAGEMENT ACCOUNTING-I
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 the alternatives given below. 14
If actual loss is less than expected loss, then it is called as
Abnormal loss Abnormal gain
Normal loss Normal gain
Several products are obtained from the same process using same raw
material having more or less of equal importance are called as
by-products co-products
joint products equivalent products
Cost before spilt off point is also called as cost.
after separation further processing
joint post separation
If profit is 25% on transfer price, then it is on cost.
33.33 20
16.67 50
Sales multiplied by profit volume ratio, we get
contribution profit
fixed cost margin of safety
Fixed Cost Contribution
Sales Variable cost
Profit Loss
Margin of safety Multiplied by P. V. Ratio
Sales Variable cost
Profit Loss
Excess of actual sales Over break even sales
Contribution Profit
Fixed cost Margin of safety
Contribution minus fixed cost
Sales Variable cost
Profit Loss
10) If sales are Rs. 350000, Profit volume Ratio is ¼, then contribution is Rs.

10,00,000 1,00,000
62,500 87,500
11) Sales minus Contribution Margin Ratio)
Fixed cost Profit
Variable cost MOS
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12) Margin of safety Rs. 2,00,000, actual sales were Rs. 5,00,000, Fixed cost
Rs. 8,00,000 then break even sales were Rs.
6,00,000 4,00,000
8,00,000 3,00,000
13) If fixed cost Rs. 1,20,000, Break even point 3000 units, selling price Rs. 90
per unit, then variable cost per unit is Rs.
60 20
30 50
14) If fixed cost Rs. 90,000, Break even point 3000 units, selling price Rs. 90
per unit, sales 8000 units then profit is Rs.
1,00,000 1,50,000
2,00,000 2,50,000
Q.2 Write short notes on: 14
Methods of apportioning joint cost
Difference between Job costing and process costing
Q.3 Answer the following: 14

Particulars 2017 2018
Sales 1,00,000 3,00,000
Profit 20,000 1,00,000
You are required to compute:
Profit volume ratio
Fixed cost
Break even sales
Sales 2000 units Rs. 40 per unit, Variable Cost Rs. 30 per unit, Fixed
Cost Rs. 10,000 per annum.
You are required to calculate P.V. Ratio, Break Even Sales Rs, Margin of
Safety and also calculate the same if selling price reduced by 5%.
Q.4 Attempt any one of the followings: 14
Product Z yields by product X and Y. The joint cost Rs. 80,500. From the
Accounting information, show how you would apportion the joint cost.
Products Z X Y
Sales Rs. 1,20,000 40,000 30,000
Cost after separation Rs. 23,000 6,000 5,000
Estimated selling expenses on sales 20% 20% 20%
Estimated profit on sales 25% 20%
The product of a company passes through three processes before
completion. The particulars of which are as follows.
4,000 units were introduced initially at a cost of Rs. 16,000
Particulars Process A Process B Process C
Material Rs. 12,000 10,000 9,000
Labour Rs. 16,000 5,000 4,900
Manufacturing expenses 2,000 3,400 3,500
Other factory overheads 3,500 2,000 2,000
Normal scrap 2 4 2.5
Scrape value per unit Rs. 0.50 1.00 2.00
Output units 3850 3600 3500
Prepare Process accounts.
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Q.5 Attempt any one of the followings: 14
X Ltd manufacturing their product through three plants.
Particulars Plant A Plant B Plant C
Capacity operation 100% 75% 60%
Sales 5,00,000 3,00,000 60,000
Variable Cost Rs. 4,00,000 2,25,000 30,000
Fixed cost Rs. 50,000 40,000 10,000
X Ltd thinking about merging all three plants for better operation.
You are required to compute:
Capacity of merged plant for break even
Profit at 75% of merged plant capacity
Sales of merged plat to earn overall profit of Rs. 2,50,000

Particulars A Ltd. B Ltd.
Sales 5,00,000 5,00,000
Variable Cost Rs. 4,00,000 3,00,000
Fixed cost Rs. 50,000 1,50,000
Profit 50,000 50,000
You are required to compute:
P. V. Ratio and Break even sales of each company.
Sales of each Co. to earn profit of Rs. 1,00,000
Which Co is likely to earn more profit in conditions of
Heavy demand
ii) Low demand