2013
(August)
COMMERCE
Paper: 103
(Cost and Management Accounting)
Full Marks – 80
Time – Three Hours
The figures in the margin
indicate full marks for the questions.
1.
(a) “Cost Accounting is an unnecessary luxury for a business establishments.”
Do you agree with this statement? Discuss. 16
Or
(b) What are the various techniques of cost control?
Distinguish between cost reduction and cost control? 10+6=16
2.
(a) From the following information, calculate the
1) Effective
kilometers per annum.
2) Effective
passenger kilometers per annum.
3) Total
cost of fuel.
4) Cost
of fuel per kilometer.
|
Distance of one-way
route
Round trips per day
Days operated in a
month
Seating capacity
Seating capacity
occupied
Fuel consumption
Rate of fuel
|
= 40 kilometer
= 3
= 25
= 50 passengers
= 50%
= 1 litre per 6
kilometer
= Rs. 15 per litre
|
(b) A transistor manufacturer who commenced his business on
1st April 2011 supplies you with the following information and asks
you to prepare a statement showing the profit per transistor sold. 16
Wages
and materials are to be charged at actual cost, works overhead at 75% of wages
and office overhead at 30% of works cost. Number of transistors manufactured
and sold during the year was 540.
Other
particulars are –
|
Materials per set
Wages per set
Selling price per
set
|
= Rs. 240
= Rs. 80
= Rs. 600
|
If
the actual works expenses were Rs. 32,160 and office expenses were Rs. 61,800,
prepare a Reconciliation Statement.
3.
(a) What are the objectives of Financial Statement Analysis? Distinguish
between Analysis and Interpretation of Financial Statements? 10+6=16
Or
(b) What are the Trend Ratios? Explain the techniques of
computing Trend Ratios. 6+10=16
4.
(a) From the following information, prepare a summarised Balance Sheet as on 31st
March 2010 (Your workings should form part of the answer). 16
|
|
Rs.
|
|
1)
Working capital
2)
Reserve and surplus
3)
Bank overdraft
4)
Fixed assets / proprietor ratio
5)
Current ratio
6)
Liquid ratio
|
1,20,000
80,000
20,000
0.75
2.50
1.50
|
Or
(b) Discuss the ratios which assess the company’s debt
capacity. 16
5.
(a) XYZ Ltd. sells its products on a gross profit of 20% on sales. The
following information is extracted from its annual accounts for the year ended
31st March 2010: 16
|
|
Rs.
|
|
Sales at 3 months
credit
Raw materials
Wages paid – 15 days
in arrears
Manufacturing
expenses paid one month in arrear
Administrative
expenses – one month in arrears
Sales promotion
expenses payable half yearly in advance
|
40,00,000
12,00,000
9,60,000
12,00,000
4,80,000
2,00,000
|
The
company enjoys one month credit from the suppliers of raw materials and
maintains 2 months stock of raw materials and one and half month finished
goods. Cash balance is maintained at Rs. 1,00,000 as a precautionary balance,
Assuming a 10% margin, find out the working capital requirements of XYZ Ltd.
Or
(b) Define ‘operating cycle concept’. What are the important
factors which determine the working capital of a business? 6+10=16
***
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