B.B.A. DEGREE EXAMINATION, NOVEMBER 2017
Second Semester
Business Administration
COST ACCOUNTING
(CBCS 2014 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 x 2 20)
Answer all questions.
1. Name the two basic methods of costing.
2. Define Cost Unit.
3. What do you mean by material control?
4. What is material requisition?
5. Give the meaning of labour turnover.
6. What do you mean by fringe benefits?
7. What is meant by absorption of overheads?
8. Indicate a few possible sources of difference between
Reconciling Cost and Financial Accounts.
9. What is unit costing?
10. Define Scrap.
Sub. Code
4BBA2C2
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Part B 5 25)
Answer all the questions, choosing either or
11. State the objectives of Cost Accounting.
Or
Write short notes on
Conversion cost
Sunk cost.
12. How is centralised purchasing superior to
decentralised purchasing?
Or
From the following particulars, calculate
Re-order level
Minimum level
Maximum level.
Normal usage 100 units per day
Minimum usage 60 units per day
Maximum usage 130 units per day
Economic order quantity 5000 units
Re-order period 25 30 days.
13. What is idle time? How should it be treated in cost
accounts?
Or
What is the basic idea behind Taylor's differential
piece rate system?
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14. What is element — wise classification of overheads?
Or
Calculate Direct Labour Hour Rate from the
following
Total number of workers 100;
Working days in a year 300;
No. of hours per day worked
Short and Idle time
Factory Overhead Rs. 11,400;
Gift to workers Rs. 1,000.
15. What are the main features of unit costing?
Or
Distinguish between production account and cost
sheet.
Part C 10 30)
Answer any three questions.
16. Explain the various classifications of cost.
17. Show the stores ledger entries as they would appear
when using
The Weighted average method and
The LIFO method of pricing issues, in connection
with the following transactions.
August Units Value
1 Balance in hand B/F 300 600
2 Purchased 200 440
4 Issued 150
6 Purchased 200 460
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August Units Value
11 Issued 150
19 Issued 200
22 Purchased 220 480
27 Issued 250
18. Calculate the earnings of a worker from the following
information as under
Time rate method Piece rate method
Halsey plan and Rowan plan.
Information given
Standard time 30 hours
Time taken 20 hours
Hourly rate of wages is Re.1 per hour plus a
dearness allowance 50 paise per hour worked.
19. What are the factors to be taken into account in selecting
a particular method for computation of overhead rates for
a factory?
20. The accounts of a machine manufacturing company
disclose the following information for the six months
ending 31st December 2014
Materials used Rs. 1,50,000; Direct wages Rs. 1,20,000;
Factory Overheads Rs. 30,000 and Administrative
expenses Rs. 15,000.
Prepare the Cost Sheet of the machines and calculate the
price which the company should quote for the
manufacture of a machine requiring materials valued
Rs. 1,250 and expenditure in productive wages Rs.750 so
that the price might yield a profit of 20% on the selling
price.