M.Com. (Semester (CBCS) Examination Nov/Dec-2018
ADVANCED COSTING (Paper
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Use of Calculator is allowed.
Q.1 Choose the alternatives given below. 14
The store keeper should initiate a purchase requisition when stock reaches

Reorder level Minimum level
Maximum level Average level
The allotment of whole items of cost to cost centers or cost unit is called
Cost apportionment Cost allocation
Overhead absorption Cost classification
Economic order quality is also called as
Re-order point Re-order level
Re-order quantity Economic Batch Quantity
costing eliminates unhealthy competition.
Marginal Differential
Process Uniform
Use of uniform costing system creates market.
Monopolistic Open
Competitive International
cost per unit remains constant.
Fixed Variable
Period Factory
is apportioned on the basis of floor area.
Power Depreciation
Rent Insurance
The techniques and process of ascertaining the cost is called
cost accounting allocation
cost costing
Maximum stock level is 3600 kg and Average Stock Level is 2000 kg so that
minimum stock level is kg.
400 5600
1600 600
10) Aggregate of indirect material, indirect labour and indirect expenses is called
as
prime cost overheads
cost of production total cost
11) If actual overheads exceed the amount applied to production it is said to be

over absorption under valued
under absorption over valued
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12) is quantitative record of stores receipts, issues and balance; it is kept
by store keeper.
Material Requisition Material Return Note
Store Ledger Bin card
13) Which of the following expenses is apportioned on the basis of the number of
employees?
Welfare Selling
Depreciation Factory
14) Inter firm comparison is facilitates by using costing system.
Material Uniform
Marginal Pre-determined
Q.2 Write short note on. 14
Objectives of Cost Accounting
Uniform costing
Q.3 M/s Reliance Industries Ltd supplies you the following information. 07
Consumption of material per annum 15,000 kg
Cost of placing an order Rs. 48
Cost of Raw Materials Rs. 2 per kg
Storage cost is of average inventory
Ascertain the Economic order quantity
The following information in respect of component is extracted from the books
of M/s Perfect Computer Ltd. Solapur for the year 31st March 2016.
07
Reorder Level 3,600 units
Maximum Level 4,300 units
Minimum Level 1,800 units
Reorder Quantity 1,500 units
Maximum usage in a month 600 units
You are required to calculate Average Stock Level.
Q.4 Prepare store Ledger Account on the basis of simple Average and Weighted
Average.
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Receipts:
1-10-2017 Opening stock 200 units at Rs. 3.50 per unit
3-10-2017 Purchases 300 units at Rs. 4.00 per unit
13-10-2017 Purchases 900 units at Rs. 4.30 per unit
23-10-2017 Purchases 600 units at Rs. 3.80 per unit
Issues:
5-10-2017 Issued 400 units
15-10-2017 Issued 600 units
25-10-2017 Issued 600 units
OR
Q.4 What do you mean by overheads? How are the overheads classified? 14
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Q.5 Work out in the appropriate from the machine hour rate of a Mill with reference to
the following items of information extracted from the account books of a woodworking
shop.
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Purchase price of saw mill Rs. 90,000.
Freight, other incidental and installation charges Rs. 10,000
Life of saw mill is 10 years 2000 working hours per year.
Repair charges 50% of depreciation
Consumption of electric power 10 units per hour 7 paise per unit.
Lubricating oil Rs. 2 per day of 8 hours
Consumable stores Rs. 10 per day of 8 hours
Wages for machine operator Rs.4 per day of 8 hours.
OR
Q.5 Compare Financial Accounting with Cost Accounting. 14