DISTANCE EDUCATION
M.Com. DEGREE EXAMINATION, DECEMBER 2017.
COST AND MANAGEMENT ACCOUNTING
(2005 onwards)
Time Three hours Maximum 100 marks
PART A — x 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. Define cost Accounting. Explain its characteristics.
2. Calculate Economic Order Quantity.
Annual requirements 3600 Kgs.
Cost of placing and receiving one order Rs. 10
Annual carrying and storage cost Rs. 20 p.u.
3. What are the features of job costing?
4. Bring out the distinction between management
accounting and financial accounting.
5. Define Budgetary Control. State its advantages.
6. What are the steps to be taken in using the standard
costing?
Sub. Code
13
DE-2692
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7. Prepare a cost sheet from the following information.
Rs.
Opening stock of raw materials 1,44,000
Purchases of raw materials 8,64,000
Closing stock of raw materials 2,16,000
Direct wages 3,60,000
Factory on cost is recovered at 20% on prime cost and
office expenses are recovered at 80% on factory on cost.
8. What do you understand by ABC analysis? What are its
advantages?
PART B — 15 60 marks)
Answer any FOUR questions.
All questions carry equal marks.
9. What is meant by equivalent production? Explain the
procedure for computation of equivalent production.
10. Explain the scope and functions of management
accounting.
11. BPL Ltd. wishes to arrange overdraft facilities within
bankers during the period April to June 2015 when it will
be manufacturing mostly for stock. Prepare a Cash
Budget for the above period from the following data,
including the extent of the bank facilities the company
will require at the end of each month:
Credit sales
Rs.
Purchases
Rs.
Wages
Rs.
February 2015 1,80,000 1,24,800 12,000
March 1,92,000 1,44,000 14,000
April 1,08,000 2,43,000 11,000
May 1,74,000 2,46,000 10,000
June 1,26,000 2,68,000 15,000
DE-2692
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50 per cent of credit sales are realised in the month
following the sales and the remaining 50 per cent in
the second month following. Creditors are paid in
the month following the month of purchase Lag in
payment of wages 1 month.
Cash at bank on 01.04.2015 (estimated) Rs. 25,000.
12. From the following, calculate Material Variances.
Standard Actual
Raw material Qty. Rate Amt. Qty. Rate Amt.
A 1,000 2 2,000 1,500 1 1,500
B 1,500 3 4,500 1,000 2 2,000
13. Explain the steps to be taken for the installation of a cost
system.
14. What is inter — process profit? State the objects, merits
and demerits of this concept.
15. You are given: Margin of safety Rs.10,000 which
represents 40% of sales. P.V. Ratio 50%. Calculate
Sales Break even sales Fixed cost Profit.
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