## Tuesday, January 21, 2020

2018
COST AND MANAGEMENT ACCOUNTING
Paper: 405 (Management Major)
Full Marks – 80
Time – Three Hours
The figures in the margin indicate full marks for the questions
GROUP – A
(Cost Accounting)
Marks – 40
1. Answer the following as directed:                                                       1x6=6
a)         Variable cost remains fixed per unit. Write true or false.
b)         In case of LIFO method, issues are based on actual cost. Write true or false.
c)          In historical costing, actual costs are ascertained after they have been incurred. Write true or false.
d)         Quantity and price are recorded in the Bin Card. Write true or false.
e)         Time wage is suitable where quantity of work is more important than quality of work. Write true or false.
f)          Rent is variable overhead. Write true or false.
2. Answer the following questions:                                                          2x2=4
a)         What is labour turnover?
b)         What is bill of materials?
3. Answer any two questions from the following:                             5x2=10
a)         Write any five differences between financial accounting and cost accounting.
b)         What are the different methods of measuring labour turnover?
c)          Write the differences between ABC analysis and VED analysis.
4. Answer the following questions:                                                          10x2=20

(a) What are the techniques of costing?
Or
Two components X and Y are used as follows:
 Normal usage Maximum usage Minimum usage Re-order quantity X Y Re-order period  X Y 600 units per week each 900 units per week each 300 units per week each. 4,800 units 7,200 units. 4 to 6 weeks, 2 to 4 weeks.
Calculate:
1)         Re-order level.
2)         Minimum level.
3)         Maximum level.
4)         Average level for each component X and Y.
(b) What are the various methods of absorption of overhead?
Or
 Raw Materials Standard Mix Actual Mix Units Kg. Price Rs. Amount Rs. Units Kg. Price Rs. Amount Rs. A B 60 40 25 50 1,500 2,000 56 44 25 50 1,400 2,200 Less: Loss 100 30 3,500 100 26 3,600 70 74
The standard loss is 30%.
GROUP – B
(Management Accounting)
Marks – 40
5. Answer the following questions as directed:                                                                                                  1x6=6
a)         Budgeting is a tool of Management Accounting. (Write true or false).
b)         Analysis of financial statements means an attempt to determine the significance and meaning of the data presented in financial statements. (Write true or false).
c)          Liquidity means ability of a firm to meet its long-term obligations. (Write true or false).
d)         A quick ratio of 1:1 is considered to represent a satisfactory current financial position. (Write true or false).
e)         EPS = (Net Profit after taxes – Preference dividend)/No. of equity shares (Write true or false)
f)          Contribution is the difference between sales and _______. (Fill in the blank).
6. Answer the following questions:                          2x2=4
a)         Mention two objectives of management accounting.
b)         What is margin of safety?
7. Answer any two questions from the following:                             5x2=10
a)         What is cash flow statement?
b)         What is budgetary control?
c)          From the following information, calculate –
1)         Current assets and
2)         Current liabilities.
Current ratio = 2.5
Working capital = Rs. 90,000
8. Answer any two questions from the following:                                             10x2=20
(a) Explain managerial application of marginal costing.
Or
A company is making a loss of Rs. 40,000 and relevant information is as follows:
 Sales Variable cost Fixed cost Rs. 1,20,000 Rs. 60,000 Rs. 1,00,000
You are required to calculate:
1)         Breakeven point.
2)         Sales required to earn a profit of Rs. 1,00,000.
3)         Profit when sales are Rs. 6,00,000.
4)         Margin of Safety when total sales are Rs. 3,50,000.
(b) Explain in brief the following budgets:
1)         Cash budget.
2)         Master budget.
3)         Zero-based budgeting.
4)         Fixed budget.
Or
A Ltd. has prepared the budget for the production of 1,00,000 units from a costing periods as under:
 Particulars Per unit (Rs.) Raw materials Direct labour Direct expenses Works overhead (60% of fixed cost) Administrative overhead (80% of fixed cost) Selling overhead (50% fixed) 10.00 3.00 0.50 10.00 1.60 0.80
Actual production in the period was only 60,000 units. Prepared a budget for the original and revised levels of output

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