Dibrugarh University - Cost and Management Accounting 2009

(b)   What are various tools and techniques used in Management Accounting? Explain.

Q. 2. (a)   Describe in detail the procedure of buying  materials for an industrial concern.
(b) During the first week of December,  2008, the workman Sir Ranjit  Kumar manufactured  300 Articles. He receives wages for a guaranteed  48 hour week at the rate of Rs. 4 per hour. The Estimated time  to produce one article  is 10 min and under the incentive scheme  the time Allowed is increased by 20%  Calculate  his gross  wages  according to :
(i)       Piece- work  with a guaranteed weekly wage.
(ii)    Rowan  Premium Bonus, and
(iii)   Halsey Premium Bonus   (50 %   to workman ) 

Q. 3. (a)   From the following information, prepare a statement of cost and profit  :
                                  Direct   Materials: Rs. 45,000
                                  Direct   Labour : 1/3   of direct Material Cost.
                                  Direct Expenses: 20%   of direct material and direct labour cost.
                                  Factory Overhead: 1/9   the  of prime cost.
                                  Office  and Abministrative  Overheads  : 25%  of works cost.
                                  Selling and Distribution Overheads : 10%  of cost of goods sold.
                                  Units Produced : 100 units
                                  Unsold units: 10% of units  produced
                                  Profit: 1/6th  of sales.
(b)   Describe the various methods of ascertaining profit in respect of a contract which is still incomplete.

J. K  Fabrication  Ltd. provides the following information : Solution available here
Fixed Cost                                            Rs. 4,000
Break-Even  Sales                                Rs.   10,000
You  are required to calculate the following:
(a)    Profit  / Volume ratio
(b)   Profit  when sales are Rs. 20,000
(c)    Sale  to earn a profit of Rs. 6000.
(d)   What will be now Break –Even point of sales if selling price is reduced by 20% ?

Q.5.   (a)  What will is a Cash  Budget ? what are its objects  and advantages?
(b)   A factory engaged in manufacturing plastic basket is working at 40% capacity  and produces  10,000 baskets  per year. The present cost break up of one basket is as Under:
Factory overheads (60% fixed)
The selling price per bucket
If it is decided to work this factory at 50%capacity, the selling  price falls by 3% At 90% capacity, the selling price falls by 5% accompanied by a similar fall in prices of materials.
You are required to calculate the profit at 50% and 90% capacities.  Solution available here