M.B.A. DEGREE EXAMINATION, APRIL 2017
Fourth Semester
ADVANCED COST ACCOUNTING
(CBCS 2014 onwards)
Time 3 Hours Maximum 75 Marks
Part A x 3 15)
Answer all questions.
All questions carry equal marks.
1. What is meant by Cost Unit, Cost Centre and Profit
Centre?
2. Find out the EOQ from the following:
Cost of Placing and receiving one order: 30
Cost of materials per unit: 5
Carrying cost: 10% of inventory value.
3. Differentiate between Job, Batch and Process Costing.
4. Find out the required sales to earn the profit required.
Fixed cost 4,00,000
Profit required 2,00,000
P/V Ratio 40%.
5. List the cost audit techniques and programmes.
Sub. Code
622404
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Part B x 10 50)
Answer all questions choosing either or
All questions carry equal marks.
6. Describe in detail the various methods of pricing of
materials.
Or
Distinguish between differential piece rate systems
of Taylor and Merrick.
7. Sales price 20 per unit
Variable manufacturing cost 11 per unit
Variable selling cost 3 per unit
Fixed factory overheads 40,000 per year
Fixed selling costs 52,000 per year
Find out the followings
Break even point in volume and value;
Sales required to earn a profit of Rs. 60,000
Sales required to earn a profit of 10 of sales.
Or
Discuss the use of cost Audit to the:
Management,
Society,
Shareholders, and
Government.
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8. Explain the steps to be taken for the installation of
a costing system.
Or
What is meant by Break even chart? Explain
different types of Break Even Charts.
9. Shriram Enterprises manufactures a special
product "Zed." The following particulars were
collected for the current year.
Monthly demand of Product Zed, 1,000 units
Cost of placing an order, 100
Annual carrying cost per unit, 15
Normal usage, 50 units per week
Minimum usage, 25 units per week
Reorder period, 4 to 6 weeks.
Compute from the above:
Reorder quantity,
Reorder level
Minimum level
Maximum level/and
Average stock level.
Or
What is meant by activity based costing? Explain it
with an example.
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10. Explain the concept of
Standard costing and
Variance analysis.
Or
Product is obtained after it passes through three
distinct processes. Prepare process accounts from
the following
Particulars Process I Process II Process II Total
Materials 5,200 3,960 5,924 15,084
Wages 4,000 6,000 8,000 18,000
Production overheads 18,000
Output in units 950 840 750
Normal loss 10% 15%
Value of scrap per unit 4 8 10
1,000 units of materials 6 per unit were introduced
in process I. Production overhead is to be distributed as
100% on wages.
Part C 10 10)
Compulsory.
11. In the following table, there appear income statements
for four companies namely called Company Company
Company Y and Company Z. Each income statement
has items missing you are required to determine these
missing numbers. (Assume taxes are part of "Period
expenses.")
Particulars Co.W Co. X Co.Y Co. Z
Sales 1,35,000 1,08,000 81,000 1,26,000
Cost of good sold:
Beginning inventory 18,000 13,500 18,000
Plus Purchases 58,500 51,000 72,000
Less Ending inventory 13,500 18,000 18,000
Cost of goods sold 54,000
Gross margin 45,000
Period expenses 18,000 24,000 9,000
Net income (loss) 9,000
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