## Sunday, February 17, 2019

Gauhati University Question Papers
COST AND MANAGEMENT ACCOUNTING (May-June’ 2013)
Full Marks: 80
Time Allowed: 3 hours
GROUP – A
COST ACCOUNTING
Marks: 40
Answer either in English or Assamese
The figures in the margin indicate full marks for the questions
ANSWER ALL THE QUESTIONS AS DIRECTED
1. Answer the following as directed:                                       1x4=4

a)                  Fixed Costs depend mainly on the Effluxion of time and do vary directly with volume or rate of output. (State whether the statement is true or false)
b)                  Name the cost which is not useful for decision making.
c)                   The time taken in processing the order and then executing it is known as _____. (Fill in the blank)
d)                  Mention the standard which is fixed on the basis of scientific studies but adjusted for current subjective factors.
2. Distinguish any three of the following:                              2x3=6
a)                  Product Costs and Period Costs.
b)                  Normal and Abnormal idle time.
c)                   Over and Under absorption of overheads.
d)                  Standard Cost and Target Cost.
3. Write short note on any two of the following:                                5x2=10
a)      Relationship between Cost Accounting and Financial Accounting.
b)      ABC Analysis.
c)       Methods of measuring Labour turnover.
4. Explain the various cost concepts that are very useful for analytical and decision making purposes.                      10
Or
Annual usage is 3200 units
The unit cost is Rs. 6/-
Inventory carrying charges is 25% p.a.
The cost of procurement is Rs. 150 per order.
From the above particulars calculate
a)      Economic Order Quantity.
b)      Number of orders per year.
c)       Time between two consecutive orders.                                        6+2+2=10
5. What are the steps involved in standard costing and also state its limitations.                                                 6+4=10
Or
From the following particulars calculate:
a)      Material Cost Variance.
b)      Material Price Variance.                                        5+5=10
 Materials Standard Units Price (per-unit) (Rs.) Actual Units Actual Price (per unit) (Rs.) A B C 1010 410 350 1.0 1.5 2.0 1080 380 380 1.2 1.8 1.9

GROUP – B
(MANAGEMENT ACCOUNTING)
Marks: 40
6. Write short note on any three of the following:                                            2x3=6
a)                  Budgetary Control.
b)                  Angle of incidence.
c)                   Master Budget.
d)                  Profitability ratio.
7. State whether the following statements are true or false:                                       1x4=4
a)                  The management accountant places the data in narrow perspective than the cost accountant.
b)                  Financial statements are prepared on the basis of realisable values.
c)                   The increase in P.V. ratio means lower break-even point and higher margin of safety.
d)                  Flow of funds mean increase or decrease of working capital.
8. Answer any two of the following:                                        5x2=10
a)      What are the limitations of management accounting?
b)      Distinguish between fixed and flexible budget.
c)       Distinguish between funds flow statement and cash flow statement.
9. What are the tools and techniques of management accounting? How they assist in decision making?                 5+5=10
Or
What is zero base budget? How is it different from traditional budget? What are the advantages of such a technique of budgeting?                                         2+4+4=10
10. State the application of marginal costing in pricing decisions and profit planning.                         10
Or
From the following information find out the P.V. Ratio, Break-even point and the sales required to earn a profit of         Rs. 50,000.                                           3+4+3=10
a)      Selling price – Rs. 100 per unit.
b)      Variable Cost Rs. 75/-
c)       Fixed Cost Rs. 2,00,000/-

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