BBM/BBA (Second Semester) EXAMINATION, 2018
201 COST ACCOUNTING
(2013 PATTERN)
Time Three Hours Maximum Marks 80
N.B. All questions are compulsory.
(ii Use of calculator is allowed.
1. Fill in the blanks
1. Prime Cost includes only ...................... Cost.
2. At Break-even point Tolal Cost is equal to ..................... .
3. Factory Manager's Salary is the example of ...................
labour.
4. Any loss in excess of the estimated loss is known
as ..................... .
5. P/V Ratio is the ratio between .................. and Sales.
True or False
1. Job Costing is suitable for specific orders.
2. Fixed Cost per unit remains constant.
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3. Flexible Budget is prepared at different level of activity.
4. Cotton waste used in Factory workshop is the example
of Indirect Material.
5. Profit on every contract is computed only when the contract
is complete.
2. What do you mean by the term Cost, Costing and Cost
Accounting State the advantages and disadvantages of Cost
Accounting.
Or
Explain in brief various methods of classification of costs.
3. Write short notes on (any three)
1. Cost Unit and Cost Centre
2. Features of Process Costing
3. Work Certified Work Uncertified
4. Features of Operating Cost
5. Advantages of Budgetary Control
4. The following information is available from the books of Accounts
for the year ending 31st March, 2017
Particulars Amount/Rs.
Opening Stock of Raw material 1,88,000
Closing Stock of Raw material 2,00,000
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Opening Stock of Work-in-progress 1,00,000
Closing Stock of Work-in-progress 1,20,000
Opening Stock of Finished Goods 75,000
Closing Stock of Finished Goods 95,000
Purchase of Raw material 8,32,000
Carriage Inward 32,000
Direct wages 2,38,000
Indirect wages 16,000
Salaries to Office staff 40,000
Advertisement and promotions 18,800
Repairs to plant 42,400
Rent Rates Taxes (Factory 60% Office 18,000
General Administrative Expenses 12,400
Salesman's salary 33,600
Directors Fees 24,000
Motive power 1,12,000
Marketing Manager's Salary 72,800
Prepare cost sheet showing selling price and profit 15% on cost
price.
From the above figures, calculate
Prime Cost
Factory Cost
Cost of Production
Total Cost/Sales
Profit.
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5. A company produces 10,000 units and following are the details
of costs per unit
Direct Material Cost Rs. 3.50
Dircct Lahour Cost Rs. 2.50
Variable Overhead Cost Rs. 1.50
Fixed Cost Rs. 3.00
Sales Rs. 15.00
Find
P/V Ratio
Break-even Point
Sales required to earn a profit of Rs. 60,000
The profit made when sales are Rs. 3,50,000.
The following are the details from the records of XYZ Ltd.
The company produces 1,000 units at 60% capacity
Particulars Per Unit Cost
Material Cost 150
Labour Cost 50
Fixed Overheads (Rs. 3,00,000) 30
Variable Overheads 40
Administrative Overheads Fixed) 40
Selling and Distribution Overheads Fixed) 60
Prepare Flexible Budget at 80% and 100% capacity.
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Or
From the following data calculate
Material Cost Variance
Material Price Variance
Material Usage Variance.
Material Standard ActuaMaterial Actual
XYZ 100 units Rs. 20 per unit 110 units Rs. 30 per unit
PQR 200 units Rs. 30 per unit 180 units Rs. 60 per unit
ABC 200 units Rs. 60 per unit 150 units Rs. 50 per unit