# M.Com Previous Year Question Papers: Cost and Management Accounting (August' 2009)

2009 (August)
Paper: 103
Full Marks: 80
Time: 3 hours

1.       (a) Write briefly on the evolution of Cost accounting system and Cost concepts. 8+8=16

Or
(b) What are the differences between Activity Based Costing and Conventional Costing and How is cost analysis under activity Based costing is done.  8+8=16

2.       (a) Union Transport company supplied the following details in respect of a truck of 5 tonnes capacity:
 Particulars Amount (Rs.) Cost of Truck Estimated Life Repairs and Maintenance Driver’s wages Insurance General supervision charges Scrap value Diesel, Oil, Grease Cleaner’s wages Tax 90000 10 years 500 p.m. 500 p.m. 4800 p.a. 4800 p.a. 4500 15 per trip per day 250 p.m. 2400 p.a.
The Truck carries goods to and from the city covering a distance of 50 miles each way. On outward trip freight is available to the extent of full capacity and on return 20% capacity. Assuming that the truck runs on an average 25 days a month, work out:
(a)    Operating cost per tonne mile.
(b)   Rate per tonne per trip that the company should charge if a profit of 50% on freightage is to be earned.    16
Or
(b) An article passes through three successive operations from the raw materials to the finished product stage. The following data are available from the production records of a particular month:
 Operation No. No. of process input No. of pieces rejected No. of pieces output 1 2 3 60000 66000 48000 20000 6000 8000 40000 60000 40000
(i)      Determine the input required to be introduced in the first operation in number of pieces in order to obtain finished output of 100 pieces after the last operation.
(ii)    Calculate the cost or raw materials required to produce one piece of finished product, given the following information weight of the finished piece is 0.10kg and the price of raw material is Rs. 20 per kg.    16

3.       (a) Explain the techniques of financial statement analysis.   16
Or
(b) Explain the procedure for interpretation of accounts.   16

4.       (a) The following are the summarized Profit and loss account of S Product Limited for the year ended on 31st December, 2008 and the balance sheet as on that date:
 Particulars Amount Particulars Amount To Opening Stock To Purchases To Incidental Expenses To Gross Profit c/d To Operating Expenses: Selling and Distribution Administration Finance To Non-operating expenses: Loss on sale of assets 99500 545250 14250 340000 999000 30000 150000 15000 4000 349000 By Sales By Closing Stock By Gross Profit b/d By Non-operating Incomes: Interest Profit on sale of shares 850000 149000 999000 340000 3000 6000 349000
Balance Sheet as on
 Liabilities Amount Assets Amount Issued capital 2000 Equity shares @ Rs. 100 each Reserve Current liabilities Profit and Loss Account 200000 90000 130000 60000 480000 Land and Building Plant and Machinery Stock – in – trade Sundry Debtors Cash and Bank Balance 150000 80000 149000 71000 30000 480000
From the following statements you are required to calculate the following ratios and state the purposes they serve:
(a)    Current ratio
(b)   Operating ratio
(c)    Stock turnover ratio
(d)   Return on capital employed
(e)   Earning per share
(f)     Operating profit ratio       16
Or
(b) Elucidate the functional classification of ratios.   16

5.       (a) How shall you project working capital requirements in case of trading and manufacturing organisations?  8+8=16
Or
(b) What are the factors affecting the amount of working capital in an organisation and also show in detail the classification of working capital.   8+8=16

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