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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