M.Com. (Semester III) Examination, 2017
ADVANCED COSTING (PAPER-III)
Day Date: Tuesday, 18-04-2017 Max. Marks: 50
Time: 10.30 AM to 12.30 PM
N.B. All questions are compulsory.
Use of Calculator is allowed.
Q.1 Choose the correct alternatives form the following. 10
Analysis is process of critically examining in details accounting
information given in the
Memorandum Cost Sheet
Prospectus Financial statement
Management provides effective system of financial control
to ensure plan, progress towards the set objectives.
Production Sales
Financial Marketing
Sales minus Gross Profit is equal to
Net Profit Cost of goods sold
Overheads Purchases
If average stock is Rs. 10,000 and closing stock was Rs. 2500 more
than opening stock then amount of closing stock is Rs.
11,250 7,750 8,750 7,500
If amount of accounts receivable is Rs. 20,000 and average debt
collection period is 73 days the amount of credit sales is Rs
1,46,000 1,50,000 1,30,000 1,00,000
Current ratio is also called as ratio.
Long term liability Acid test
Working capital Quick
Gross working capital means total of
Current liabilities Current assets
Fixed assets Current assets and liabilities
Profit maximization and maximization are two important
objectives of financial management.
Wealth Loss Debt Inventory
facilities economy in investment in material.
BEP Cost Profit ABC
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SLR-Q-27
10) Cash Budget serves as sound basis for control.
Capital Profit Cash Expenses
Q.2 Write short notes on any two. 10
Functions of Financial Management
Motives of Cash Management
Inventory control techniques.
Q.3 Calculate material turnover ratio for the year 2016 from the
following.
05
Particulars Material A Material B
Material in hand on 1.1.2016 50,000 1,75,000
Material in hand on 31.12.2016 30,000 1,25,000
Purchase during 2016 3,80,000 2,50,000
Calculate Economic Order Quantity. 05
Annual demand 2400 units
Unit price Rs. 2.40
Ordering cost per order Rs. 4.00
Storage cost p.a.
Interest rate 10% p.a.
Q.4 Prepare cash budget for three months ended 31st December 2015. Cash
balance on 1.10.15 Rs. 30,000. It is estimated that cash sales will be ¼th
of credit sales, period of credit allowed to debtors two months and from
supplies one month. Time lag in payment of wages ¼th month and in
expenses 1/5th month.
10
Month Sales Purchases Wages Expenses
August 2,00,000 1,50,000 30,000 10,000
September 2,20,000 1,60,000 35,000 11,000
October 2,40,000 1,70,000 40,000 12,000
November 2,60,000 1,80,000 45,000 13,000
December 2,80,000 1,90,000 50,000 14,000
OR
Using the following information calculate: 10
1. Total Sales
2. Debtors
3. Inventory
4. Total Assets
5. Creditors
Gross Profit of Sales) Rs. 60,000
Shareholders Equity Rs. 50,000
Credit sales to total sales 80%
Total assets turnover 3 times
Stock turnover 8 times
Average collection period
year 360 days)
18 days
Current ratio 1.6:1
Long term debts to equity 40%
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SLR-Q-27
Q.5 From the following information determine the quantity of the
following.
10
1. Minimum stock of Material X
2. Maximum stock of Material Y
3. Reorder level of Material Z
4. Average stock of Material X
Particulars Material
X
Material
Y
Material
Z
Usage per unit of production 8 5 10
Reorder quantity 10,000 6,000 12,000
Price per kg. 4 3 7
Delivery period (weeks) 1 to 5 3 to 5 2 to 4
Reorder level 7000 5000
Minimum level 3000
Weekly production varies from 200 to 250 units.
OR
From the following data calculate Net Profit Ratio, Return on total assets,
Inventory turnover, Net worth to debt. Gross Profit ratio.
10
Sales Rs. 25,20,000
Cost of sales Rs. 19,20,000
Inventories Rs. 8,00,000
Other current assets Rs. 7,60,000
Net Profit Rs. 3,60,000
Fixed Assets Rs. 14,40,000
Net Worth Rs. 15,00,000
Debt Rs. 9,00,000
Current liabilities Rs. 6,00,000