2014
(
August)
COMMERCE
Course
: 103
(
Cost and Management Accounting )
Full
Marks : 80
Time
: 3 hours
The
figures in the margin indicate full marks for the questions.
1. (a) Define the term ‘Cost centre’ and ‘Cost
unit’. Given below is a list of five industries. Give the method of
costing and the unit of cost against each industry.
(i)
Nursing home
(ii)
Road transport (goods)
(iii)
Steel
(iv)
Bridge construction
(v)
Sugar. 3+3+(2x5)=16
(b) Define activity based costing. What are
its main objectives? Distinguish between activity based costing
and conventional costing.4+6+6=16
2. (a) (i) Explain in detail the essential
characteristics of process costing?
(ii)
From the following information, prepare a Process Account, Abnormal Gain Account and Normal Loss Account.
Input of raw material – 840 units @ Rs. 40
per unit.
Direct Material Rs. 5,924
Direct wages Rs. 8,000
Overheads Rs.
8,000
Actual output 750 units
Normal Loss 15%
Value of scrap per unit Rs. 10 per unit. 6+10=16
Or
(b) State the reasons for the difference
between the profits shown in the financial accounts and those shown in cost
accounts of an industrial organisation. Explain the
need for reconciliation of cost and financial accounts. 8+8=16
( Turn Over )
3. (a) Calculate the trend percentages from the
following figures of X Ltd. taking 1996 as the base and interpret them 16
|
Year
|
Sales
Rs.
|
Stock
Rs.
|
Profit
Before Tax
Rs.
|
|
1996
1997
1998
1999
2000
|
1,881
2,340
2,655
3,021
3,768
|
709
781
816
944
1,154
|
321
435
458
527
672
|
Or
(b) What are the different techniques adopted
in analysis of Financial Statements? What are the limitations of
Financial Statement Analysis? 12+4=16
4. (a) From the following information make out a
statement of proprietor’s funds
with
details.
(i)
Current ratio is 2.5 ;
(ii)
Liquid ratio 1.5 ;
(iii)
Proprietory ratio (fixed asstes / proprietory fund) 0.75
(iv)
Working capital Rs. 60,000
(v)
Reserve and surplus Rs. 40,000
(vi)
Bank overdraft Rs. 10,000 and
(vii)
There is no long term loan or fictitious assets.
Or
(b) “Ratios are indicators – sometimes
pointers but not in themselves powerful tools of management”. –
Explain. 16
5. (a) Working capital management is nothing
more than deciding about level, structure and financing of current assets. –
Explain. 16
Or
(b) 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, 1999.
Sales
at 3 months credit Rs.
40,00,000
Raw
materials Rs.
12,00,000
Wages
paid – 15 days in arrears Rs. 9,60,000
Manufacturing
expenses paid – 1 month arrear Rs.
12,00,000
Administrative
expenses – 1 month arrear Rs. 4,80,000
Sales
promotion expenses payable half-yearly in
Advance Rs. 2,00,000
The
company enjoys one month credit from the suppliers 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 requirement of XYZ Ltd. 16
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