B.Com. (Part III) (Semester VI) (CGPA) Examination, 2018
Advanced Cost Accounting (Paper II)
Day and Date Saturday, 8-12-2018 Max. Marks 70
Time 2.30 p.m. to 5.00 p.m.
Instructions All questions are compulsory.
Figures to the right indicate full marks.
Use of calculator is allowed.
1. Choose correct alternatives from the given below 14
is the difference between the selling price and variable
cost.
Contribution Fixed cost Profit Margin of Safety
is the volume of sales at which there is neither profit nor loss.
Beak Even Point Standard Cost
Estimated Cost Contribution
Which of the following is the cost control technique
Standard costing Cost sheet
Reconciliation Statement None of the above
variance is always unfavorable variance.
Idle Time Material Cost
Labour Cost Labour Efficiency
Cash, purchase, expenses, sales budgets etc. are the type of
Functional Capital Master Long term
budget is the most suitable for fixed expenses.
Fixed Flexible Cash Expenses
The cost of product as determined under standard cost system is a
Pre-determined Cost Marginal Cost
Total Cost Estimated Cost
cost is pre-determined cost and relates to each element of cost.
Standard Marginal Historical Actual
The difference between standard cost of materials and actual cost of
material is called variance.
Material cost Material efficiency
Material usage Material price
10) budget shows the anticipated sources and utilization of cash.
Cash Capital Flexible Long term
11) The excess of selling price over the variable cost is called as
Variable Cost P/V Ratio Fixed Cost Contribution
12) is the most important tools of the cost planning.
Cost Sheet Budget
Profit and Loss A/c None of the above
13) Additional cost of producing one additional unit is called
cost.
Fixed Variable Marginal Semi variable
14) When fixed cost is Rs. 10,000 and contribution per unit is Rs. 5 the
breakeven point unit.
5,000 7,000 9,000 2,000
2. Write short notes on any two 14
Standard Costing
Types of Budgets
Margin of Safety and Break Even Point.
3. Calculate material cost variance and material rate variance from the following
information. 7
Material Standard Actual
Quantity Kg. Price Rs. Quantity Kg. Price Rs.
X 1,000 08 1,000 07
Y 800 06 900 07
Z 400 12 500 11
Total 2200 2400
From the following information calculate contribution and P/V Ratio. 7
Selling Price per unit Rs. 1,000, Variable Cost per unit is Rs. 600, Fixed
Cost is Rs. 2,00,000. Actual output for the period is 20,000 units.
4. The Budgeted expenses for production of 5,000 units in a factory are furnished
below
Particulars Cost Per unit
Materials Rs. 70
Labour Rs. 25
Overheads Rs. 20
Fixed overheads (Rs. 50,000) Rs. 10
Variables expenses (Direct) Rs. 05
Selling expenses fixed) Rs.13
Distribution expenses fixed) Rs. 07
Administration expenses (Rs. 25,000) Rs. 05
Total cost of per unit (to make and sell) Rs. 155
Prepare Budget for production of 4,000 units and 3,000 units. Assume that
administration expenses are rigid for all levels of production. 14
OR
Prepare Cash Budget for the three months ending 31st July 2018 from the
information given below 14
Month Credit Sales Purchases Wages Overheads
March 1,40,000 96,000 30,000 17,000
April 1,50,000 90,000 30,000 19,000
May 1,60,000 92,000 32,000 20,000
June 1,70,000 1,00,000 36,000 22,000
July 1,80,000 1,00,000 40,000 23,000
Other Information
50% of the credit sales are collected in the next month and 50% in the
following month.
Period of credit allowed by suppliers two months.
Lag in the payment of wages and overheads one month.
Cash and Bank balance on 1st May is Rs. 60,000.
Set P
5. The following details relating to Product during the month of April 2017 are
available. You are required to calculate
Material Price Variance
Material Usage Variance
Labour Rate Variance
Labour Efficiency Variance.
Standard Cost Per Unit
Material 500 Kgs.@ Rs. 40 per Kg.
Labour 400 Hours Re. 1.00 per hour.
Actual cost for the month
Material 4,90,000 Kgs. Rs. 42 per Kg.
Labour 3,96,000 Hours Rs. 1.10 per hour.
Actual production 1000 units. 14
OR
From the following particulars calculate
Contribution
Profit Volume Ratio
Break Even Point
Margin of Safety
Sales Rs. 1,00,000
Fixed Cost Rs. 20,000
Variable Cost Rs. 60,000 14