*Answer any five questions:-*
1. Discuss in details the
advantages & limitations of cost accounting. (10+10)

2. Describe the ‘elements of
cost’. What are the expenses that are not included in cost accounts? Give at
least 6 examples. (14+6)

3. What is material cost? State
the essential requirements of an effective material control. (6+14)

4. When do you advocate pricing
the issue of materials at cost price based on FIFO? Give your arguments. What are
the limitations of this method of pricing? (10+10)

5. What do you mean by scrap value
& abnormal gain? How are these treated in process costing? (8+12)

6. From the following hour rate,
calculate the machine hour rate of a machine: - (20)

Cost
of machine Rs30500

Scrape
value Rs2500

Estimated
life 12
yrs.

Effect
on work in days – 200 days of 8 hrs; 100 days of 6 hrs.

Maintenance
& repairs – 7.5% of cost of machine.

Stores
consumed – Rs1000

Power
consumption – Rs2 per operating hour.

Insurance
premium – 1% of cost of machine

Supervision
expenses – Rs7500

Estimated
idle time – 10%.

7. The production section of a
factory working on a job order system pays their workers under the rowan
premium bonus scheme. Workers are also entitled to a dearness allowance of Rs24
per work of 48 hours. A worker’s basic wage is Rs4 per day of 8 Hours & his
work time sheet for a week are given below:-

Job
No. Time
allowed Time
taken

1 25
hours 20
hours

2 30
hours 20
hours

Idle
time (waiting) _ 8 hours

Calculate gross wages the worker
has earned for the week. (20)

8. It has been mentioned that the
cost standard for materials consumption are 20 kg @ Rs5 per kg. Compute the
variance when Actual are: (20)

a)
24 kg at Rs5 per kg.

b)
20 kg at Rs6 per kg.

c)
24 kg at Rs6 per kg.

d)
18 kg for a total cost of Rs180.