2017
(September)
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) Define ‘Cost’, ‘Costing’ and ‘Cost accounting’. Explain briefly the nature
and objectives of Cost accounting. 2+2+2+5+5=16
Or
(b) Narrate the concepts of Cost Reduction and Cost Control.
State in brief, the advantages as well as dangers of Cost Reduction efforts. 3+3+5+5=16
2.
(a) (i) Explain the essential features of process costing. 6
(ii) The Kalyan Transport Company is running four buses
between two towns which are fifty kilometers apart. Seating capacity of each
bus is 40 passengers.
The following particulars were obtained from their books
for a particular month of a year.
Rs.
|
|
Salaries of office
and supervisory staff
Wages of drivers,
conductors and cleaners
Diesel oil and Other
oils
Repairs and
Maintenance
Taxation, Insurance
etc
Depreciation (on
Kms. Basis)
Interest and other
charges
|
20,000
30,000
10,000
3,000
2,500
4,000
3,500
|
Actual
passengers carried were 75% of the seating capacity. All the four buses run 30
days in the month, each bus made one round trip per day.
Prepare
an Operating Cost Sheet for the month showing the cost per passenger-km. 10
(b) Discuss the objectives of reconciliation of cost and
financial accounts. Explain the need for reconciliation. 6+10=16
3.
(a) What is Common-size Statement? Discuss the features and utility of such a
statement. 4+12=16
Or
(b) From the following Balance Sheet of the Popular Co. Ltd.
prepare Common-size Balance Sheets and give your comments on the affairs of the
company. 10+6=16
Popular
Company Limited
Balance
Sheet
(Rs. in lakhs)
Liabilities
|
2015
|
2015
|
Assets
|
2015
|
2016
|
Share Capital
Reserves
Secured Loans
Unsecured Loans
Current Liabilities
|
70
70
25
15
20
|
70
120
20
10
30
|
Fixed Assets
Current Assets:
Stock
Debtors
Cash
|
100
60
30
10
|
120
80
40
10
|
200
|
250
|
200
|
250
|
4.
(a) “A device for making financial data more meaningful is to reduce them to
ratios.” Elucidate the statement with justifications. 16
Or
(b) From the following Balance Sheet you are required to
calculate the ratios mentioned below and comment in relation to each of these
ratios:
1) Ratio
of External Equities to Total Assets,
2) Ratio
of Fixed Assets to Net Worth,
3) Ratio
of current Assets to Net Worth. 6+5+5=16
Balance Sheet
As at ………………
Liabilities
|
Rs.
|
Assets
|
Rs.
|
6,000 Equity Shares
@ Rs. 100 each
7% Debentures
Reserves and Surplus
Sundry Creditors
Bills Payable
|
6,00,000
3,00,000
1,60,000
60,000
1,00,000
|
Buildings
Furniture
Machinery
Stock
Debtors
Cash balances
|
5,00,000
4,20,000
80,000
1,20,000
60,000
40,000
|
12,20,000
|
12,20,000
|
5.
(a) Differentiate between: 8+8=16
1) Fixed
working capital and variable working capital.
2) Gross
working capital and net working capital.
(b) M/s A.B. & Co. requests you to prepare a statement
showing the working capital requirements. They estimate to produce 4,800 units
in a year. The following information have been furnished for you.
Elements of Cost
|
Cost Per unit (Rs.)
|
Raw materials
Direct labour
Overheads
|
8
2
6
|
Total cost
Profit
|
16
4
|
Selling price
|
20
|
Raw
materials are in stock on an average period of one month. Materials remain in
process on an average period of half a month. Finished goods are in stock on an
average period of one and a hald months. Customers enjoy one month’s credit
while suppliers allow one month’s credit.
Cash
in hand expected in Rs. 2,500.
Production
is carried out uniformly during the year and wages and overheads accrue evenly.
16
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