Cost Accounting Important Questions [Dibrugarh University B.Com 2nd Sem Minor Course]

Cost Accounting Important Questions
Dibrugarh University BCOM 2nd SEM Minor

Question Paper Pattern

Question No.

Section / Type

Marks per Question

Total Marks

Options / Choice

1 (a)

Fill in the blanks

1*4

4

Compulsory

1 (b)

True or False

1*4

4

Compulsory

2

Short Notes

4*3

12

Any 3 out of 5

3

Unit 1: Introduction / Cost Sheet

10

10

1 Theory OR 1 Practical

4

Unit 2: Labour / Material Control

10

10

1 Theory OR 1 Practical

5

Unit 3: Overhead Accounting

10

10

1 Theory OR 1 Practical

6

Unit 4: Costing Methods

10

10

1 Theory OR 1 Practical

Total

60 Marks

 

Unit – 1: Basic Concept of Cost Accounting (Part A) and Cost Sheet (Part B)

Q. What is Cost accounting? Discuss briefly the nature (2010) and objectives (2011) of Cost accounting.

Q. What are the advantages and limitations of cost accounting?               2019

Q. “Cost accounting is an essential tool to the Management” –Comment.            2011, 2012, 2025

Q. Distinguish and also mention the relationship between

Ø  Cost accounting and Financial accounting                     2013SN, 2016SN, 2018SN

Ø  Cost accounting and Management Accounting

Q. “Cost accounting is better understood as a cost control and cost reduction exercise and not mere a cost ascertainment process”. Considering this statement explain the scope of cost accounting.           2010

Q. What are the steps involved in installing a costing system. Mention the problems faced by a manufacturing unit in installing such a system. What are the essentials of an effective costing system?              2012, 2014

Q. Explain the role and functions of cost accountant.

Q. What do you understand by cost classification? Discuss the various bases of classification of costs and various types of costs.                               2015, 2016SN, 2017, 2024

Q. Explain the purposes of classification of costs. Distinguish between direct cost and indirect cost.   2022

Q. Write Short notes on:

Ø  Cost sheet or Statement of Cost                        2017SN

Ø  4 Methods of Cost accounting

Ø  4 Techniques of Cost accounting                       2019SN

Ø  Cost centre and Cost Unit

Or

Unit 1: Part B (Practical) – Cost Sheet

Unit – 2: Material Control – Purchase and Issue (Part A)

Q. What do you mean by Inventory Control (2017SN)? What are its objectives (Need)? Explain the essentials of Material Control.             2014, 2015SN

Q. What are various techniques of Inventory Control? Explain them in detail.    2015SN, 2018, 2024

Q. Explain various methods of pricing of material issue together with their respective merits and demerits. 2013, 2015SN

Q. What do you mean by Perpetual Inventory system (2013SN)? What are its essential features? Explain its importance in material control.                2016

Q. How Perpetual Inventory System differs from ABC analysis? State the advantages of ABC analysis.  2017

Q. Explain in brief the process of purchasing and receiving goods.

Q. “Store ledgers are essential to an efficient costing system”. Considering this statement highlight the uses and values of store ledgers. Distinguish between Store ledger and Bin Card (2015SN).

Q. Write Short notes on:

Ø  EOQ and its calculation                         2010, 2015

Ø  ABC analysis differs from VED analysis          2013, 2014, 2016SN, 2019SN

Ø  Perpetual (2018SN) and Periodical Inventory System

Q. Practical Questions:

a)      Calculation of EOQ with offer comparison, 2012

b)      Various levels of material – Reorder level, maximum level, minimum stock level.    2014, 2025

c)       Pricing of material issue – LIFO, FIFO, Weighted average and Simple average (focus of return and loss of goods).         2019

Unit – 2: Labour cost – Computation and Control (Part B)

Q. What is idle time? What are its causes? How it is controlled? Explain the treatment of idle time in cost accounting. 2012, 2014SN, 2016, 2019

Q. What are various methods of wage payment? Explain them briefly.                  2010

Q. Explain the essentials of a sound Incentive scheme.                  2010, 2018

Q. Discuss the principles of Premium Bonus Plan. Describe the salient features of Rowan Plan and Halsey Plan and also distinguish between Rowan and Halsey Premium Plan.                        2013, 2018, 2019SN

Q. Write short notes on:

Ø  Overtime and its treatment 2025

Ø  Labour Turnover, its causes and Control Measure    2013, 2014, 2017SN, 2018SN

Ø  Time and motion study                         2014SN

Ø  Job Evaluation and merit rating

Ø  Idle time and overtime                         2015SN

Ø  Remuneration and Incentives            2015SN

Ø  Time keeping, Merit Rating (2014) and time booking

Q. Practical Problems: Rowan and Halsey premium plan, straight piece rate and Taylor’s differential piece rate method, treatment of overtime and labour turnover.

Unit 3: Part A (Overheads – Theory)

Q. What do you mean by overhead cost? Explain the various classification of overhead cost. Mention its significance. 2013, 2015, 2019

Q. What do you mean by allocation and apportionment of overheads to cost centres (2017SN, 2018SN)? What are the bases of overhead apportionment to various departments?                       2013, 2017, 2022, 2025

Q. What do you mean by under absorption and over absorption of Overheads? How do they arise (2015)? How are they treated in cost accounts?                   2015, 2018, 2019

Q. Explain various methods for absorption of overheads.                             2016, 2017

Q. Explain the treatment of some specific overheads in cost accounting.

Unit 3: Part B (Overheads – Practical)

Q. Practical Problems:

Ø  Machine hour Rate                 2013, 2015, 2016, 2017, 2018, 2024

Ø  Primary and secondary distribution of overheads from production department to service department. 2014, 2019, 2025

Unit – 4: job, Contract and Process Costing

Q. What is Job costing (2018) and Process costing? Distinguish between job costing, contract costing and process costing. 2016SN, 2017

Q. Explain the features, advantages and disadvantages of job costing.

Q. What is contract costing? What are its features? Explain how profit is determined in case of an incomplete contract.  2024

Q. Write short notes on: Cost plus contract, Escalation clause

Q. What is process costing? What are the fundamental principles of Process Costing? Point out the advantages and limitations of Process costing.                   2019

Q. Explain the meaning and treatment of Normal, Abnormal loss and abnormal gain in Process Accounts. Distinguish between normal and abnormal process loss. 2017, 2019, 2019SN

Q. What do you mean by Unit Costing? In which industries unit costing is applied? Explain its purposes.  2022, 2025

Q. What do you mean by service costing or operation costing? In which industries service costing is applied? Explain its purposes and limitations.

Q. Practical Problems

- Preparation of process accounts together with normal, abnormal loss and abnormal gain account, preparation of profit and loss account and costing profit and loss account, treatment of process finished stock and stock of raw material in process accounts.   2024

- Preparation of contract account   2025