Exam Details

Subject cost and management accounting
Paper
Exam / Course mba
Department
Organization Gujarat Technological University
Position
Exam Date December, 2018
City, State gujarat, ahmedabad


Question Paper

1
Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA SEMESTER 2 EXAMINATION WINTER 2018
Subject Code:2820001 Date:24/12/2018
Subject Name: Cost and Management Accounting
Time: 02:30 AM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1(a)
Multi choice Questions: 6
1.
tool to determine the cost of products or service.
A.
Cost
B.
Cost Accounting
C.
Costing
D.
Cost Accountancy
2.
According to decision needs of the management, what changes?
A.
Cost object
B.
Cost statement
C.
Cost Account
D
Cost Accounting
3.
Which costing method is part of specific order costing?
A.
Contract Costing
B.
By- Product Costing
C.
Service Costing
D.
Joint Costing
4.
If P/V Ratio of any company is increasing, it indicates?
A.
Variable cost is decreasing
B.
Sales Price per unit is increasing
C.
Sales is increasing
D.
All of the above
5.
The value of a befit sacrificed in favour of an alternative course of action is called?
A.
Marginal Cost
B.
Incremental Cost
C.
Direct Cost
D.
Opportunity Cost
6.
Patient-Day is final cost unit for
A.
Operation Costing
B.
Operating Costing
C.
Single Costing
D.
Contract Costing
Q.1

Explain the terms:
1. Cost Unit
2. Abnormal Gain
3. Joint Product
4. PV Ratio
04
Q.1

Describe the difficulties in installing the costing system.
04
Q.2

Explain the format of Motor Transport costing.
07
2

ABC ltd. furnished the below details related to activities:
Activity
Cost Driver
Capacity
Cost
Power
KWH
50,000 KWH
Rs.2,00,0000
Quality
No. of Inspections
10,0000 Inspections
Rs. 3,00,000
Company manufactures three products B and C. Following shows the consumption details:
Product
KWH
Quality
A
10,000
3500
B
20,000
2500
C
15,000
3000
1. Compute the cost allocated to each product from each activity.
2.Calculate the cost of unused capacity for each activity.
07
OR

A Truck starts with a load of 10 tons of goods from station P. It unloads 4 tons at station Q and rest of the goods at station R. it reaches back directly to station P after getting reloaded with 8 tons of goods at station R. The distances between P to Q to and then R to P are 40 Kms, 60 Kms, and 80 Kms respectively. Compute absolute Ton Kms and Commercial Ton Kms.
07
Q.3

Explain the assumptions in Break even Analysis.
07

Find out below Material Variances for Zero Ltd. from the information:
1. Material Cost variance
2. Material Price variance
3. Material Mix variance
MATERIALS
Standard Qty.
Actual Qty.
A
60 kg at Rs. 5per kg
70 kg. at Rs. 5 per kg
B
50 kg at Rs. 6 per kg.
40 kg at Rs. 6.20 per kg
110 kg
110 kg
07
OR
Q.3

Who is Cost Auditor Explain the powers and duties of cost auditor
07

Work Out the estimated pre-separation costs per ton of By- Products Y and Z from the following data: Costs of Manufacture before Separation: Rs. 2560000. Main Product is X. There are two By- Products Y and Z whose normal selling prices are as under:
Sales Price of Y Rs. 500 per ton
Sales Price of Z Rs. 800 per ton
Selling and Distribution expenses have been estimated to be 25% of selling Price and the Net profit is expected to be 10% of selling price. Costs to manufacture each ton after separation from the main product are: Rs. 95 for by- product Rs. 145 for by- product Z. Assume equal weighting for Y and Z.
07
Q.4

Explain various types of Overhead with examples.
07
3

A Company had incurred fixed expenses of Rs.2,25,000 with sales of Rs.7,50,000 and earned a profit of Rs. 1,50,000 during the first half -year. In the second half year, it suffered a loss of Rs. 75,000. Calculate for the first half year:
1. Profit- Volume Ratio
2. Break even point
3. Margin of safety
07
OR
Q.4

Differentiate Cost Accounting and Financial Accounting in detail.
07

Thugs Ltd.
Estimated Sales:
Month
Units
Jan
6000
Feb
7200
Mar
8400
Apr
9600
May
7200
June
8400
At the end of every month value of closing stock are calculated as 1/3rd of the estimated sales for next 2 months. Prepare Production Budget. (January- April)
07
Q.5
Badhaai Ho Ltd.
The Output of each processes is transferred to the next process at cost on completion. The stocks which consists of Raw Materials are valued at cost per unit of the preceding process. Prepare Process Cost Account Showing the Cost of output and Cost per unit at each stage of Manufacture.
Particulars
Process A
Process B
Process C
Direct Wages
12800
24000
58500
Machine Expenses
7200
6000
7200
Factory Exp.
4000
4500
4800
Raw Material Consumed
48000 units
Units
Units
Production (Gross)
74000


Wastage
2000
3000
1000
Op. Stock (Raw Material)

8000
33000
Cl. Stock (Raw Material)

2000
11000
14
OR
4
Q.5
Andhadhoon Ltd. manufactures and sells a special type of product K. Presently, the company manufactures 8000 unit, which is 80% of capacity. Present cost structures per unit of product K is below:
Direct Materials
Rs. 200
Direct Labour
Rs. 150
Factory Overhead
Rs. 120 Fixed)
Selling Overhead
Rs. 80 Fixed)
The Company estimates to produce the same number of units of the product during the following year and anticipates that fixed cost will go up by 10% while the rates of direct materials and direct labour will increase by and respectively. The company has no intention to increaser its present sales prices of Rs. 580 per unit. Under these circumstances, company obtained and offer to supply 1000 units of the product to a special customer.
Calculate the Minimum Sales Price per unit of an additional order of 1000 units to be quoted to customer if the company desires to earn an overall profit of Rs. 2,50,000.
14



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