B.B.A. (Semester II) (CBCS) Examination, 2017
COST ACCOUNTING
Day Date: Tuesday, 18-04-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
N.B. All questions are compulsory.
Use of Calculator is allowed.
Figures to the right indicate full marks.
Q.1 Choose correct alternatives: 07
Sales below break-even point indicates
Margin of safety Loss
Profit None
cost trends to be unaffected by variation in volume of
output.
Variable Fixed
Semi -Variable Sunk
The work cost is plus factory overheads.
Prime Cost Factory cost
Fixed cost Material
Bad debt is a example of overhead.
Production Administration
Selling Distribution
means the place where the materials are stored for issue.
Bin card Production department
Store ledger Bin
Depreciation is a example of cost.
Variable Semi-fixed
Semi-variable Fixed
price is the average of the prices of consignments lying in
the store at the time of issue.
Weighted Average Simple Average
Market Moving Average
Q.1 Fill in the blanks: 07
is that quantity which is most economical.
At total revenue is equal to total cost.
Prime Cost
Page 1 of 3
SLR-SINA 13
At level, new order of material is to be placed.
Factory cost is also called as
Sales are 25,000 and PV Ratio is 30% Variable cost is
LIFO stands for
Q.2 Attempt (Any two) 14
From the following Calculate Stock levels:
Maximum Stock Level
Minimum Stock Level:
Reorder level:
Average Stock Level:
When:
Normal Consumption:600 units per week
Maximum Consumption:840 units per week
Minimum Consumption:480 units per week
Reorder quantity:7200 units
Re-order period: 10 to 15 weeks
Classification of budgets
A company uses a particular material in a factory which is 20000 units
per year. The cost per unit of materials is Rs- The cost of planning
one order is Rs.100 and the inventory carrying cost is 20% p.a. from
the above information calculate EOQ.
Q.3 Attempt (Any two) 14
Computer the earnings of a worker under:
Halsey Plan Rowan Plan
Wage Rate- Rs.2 per hour
Dearness Allowance- Rs.1 per hour
Standard Hours- 80 hours
Actual Hours- 50 hours
The following is a summary of the receipt and issue of stock in a firm
during January:
Jan
1 Opening balance 500 units at Rs. per unit
3 Received from supplier 200 units at Rs22/- per unit
6 Issued 300 units
10 Issued 250 units
18 Received from supplier 200 units at Rs.21/- per unit
22 Received from supplier 160 units at Rs. per unit
31 Issued 300 units
Calculate stock Valuation by FIFO method.
Objectives of Cost Accounting
Q.4 Explain Labour Turnover. Also explain Causes, Effect and Suggestions to
reduce labour turnover.
14
OR
Page 2 of 3
SLR-SINA 13
A department of X attains sale of Rs.6,00,000 at 80% of the normal
capacity and its expenses are given below.
Particulars
Administration Expenses:
Office Salaries (Fixed)
General expenses
Depreciation (Fixed)
Rates Taxes (Fixed)
90,000
of sales
7,500
8,750
Selling Costs:
Salaries
Travelling Expenses
Sales Office
Other Expenses
of Sales
of Sales
of Sales
of Sales
Distribution Costs:
Wages (Fixed)
Rent
Other Expenses
15,000
of Sales
of Sales
Draw up a flexible budget for administration, selling and distribution cost
operating at 90% and 100% and 110% of normal capacity. Also ascertain
Profit at each level.
Q.5 The Indian Ltd. Supplies you the following information and requires you to
prepare a cost sheet.
14
Rs.
Stock of raw material on 1st April, 2010 75,000
Stock of raw material on 30th April, 2010 91,500
Direct wages 52,500
Indirect Wages 2,750
Sales 2,00,000
Work in progress on 1st April, 2010 28,000
Work in progress on 30th April, 2010 35,000
Purchases of raw materials 66,000
Factory rent, rates and power 15,000
Depreciation on Plant machinery 3,500
Expenses on Purchases 1,500
Carriage Outward 2,500
Advertising 3,500
Office rent and taxes 2,500
Traveler's Wages and Commission 6,500
Stock of finished goods on 1st April, 2010 54,000
Stock of finished goods on 30th April, 2010 31,000
OR
What is cost accounting? State the difference between Financial
Accounting Cost Accounting.