BCOC 138 Cost Accounting Question Paper Pattern and Important Questions for IGNOU BCOMF Courses

BCOC – 138 Cost Accounting Question Paper Pattern and Important Questions

1. Duration: 3 Hours

2. Maximum Marks: 100 Marks

3. Question Paper Pattern: Attempt any 5 questions out of 8. Each question carries 20 mark

* Theory Questions 4

* Practical Questions 4

Block 1: Basic Concepts of Cost Accounting

1. Define cost accounting and explain its objectives. Explain the nature, scope and advantages of cost accounting. Why is cost accounting necessary in the modern economy? June 2022, June 2024, Dec 2023, Dec 2024, June 2025

2. What are the limitations of Financial Accounting? Explain the causes of Difference in profits between cost and financial accounts. Also Differentiate between cost and financial accounting. Dec 2021, Dec 2023, Dec 2025

3. What are the steps involved in installing a costing system. Mention the problems faced by a manufacturing unit in installing such a system. What are the essentials of an effective costing system? June 2023

4. Define cost unit and cost centre with examples. (Most important Topics asked regularly)

5. What do you understand by cost classification? Discuss the various bases of classification of costs and various types of costs.   June 2022, Dec 2023

6. What are the advantages and limitations of cost accounting? “Cost accounting is an essential tool to the Management” –Comment.

7. What is cost sheet? Explain its format. June 2025

Block 2: Material Control (Part A)

1. What do you mean by Inventory Control (2017SN)? What are its objectives (Need)? Explain the essentials of a good Material Control. Dec 2021, Dec 2024, Dec 2025

2. What are various techniques of Inventory Control? Explain them in detail (Dec 2021) – Most important Topics

3. Explain ABC and EOQ technique with examples. Dec 2024, June 2024

4. Explain various methods of pricing of material issue together with their respective merits and demerits.

Or

Discuss FIFO and LIFO methods with suitable examples. Dec 2024, June 2024, Dec 2023, Dec 2021

5. Explain various steps involved in purchase of materials.  June 2025, Dec 2025

6. What is centralised and decentralised purchasing? Discuss the advantages and disadvantages of centralised and decentralised purchasing. Dec 2025

Block 2: Labour Costing & Labour Turnover (Part B)

1. What is labour turnover? Explain its Causes and what are its remedies? Dec 2024, Dec 2023

2. What are various methods of wage payment? Explain them briefly. What are the Characteristics of good wage payment method? Dec 2021

3. Define and explain:

- Time wage vs piece wage: merits & demerits. Dec 2021, Dec 2023

- Time keeping and Time Booking: importance and methods. June 2022, June 2023, June 2025

- Idle Time Dec 2023, June 2024

- Halsey Premium Plan June 2024, June 2023

- Normal and Abnormal idle time

Block 3: Overheads: Classification & Apportionment

1. What do you mean by overhead cost? Explain the various classification of overhead cost. Explain its significance. June 2023, Dec 2023, June 2025

2. What do you mean by allocation and apportionment of overheads to cost centres (2017SN, 2018SN)? What are the bases of overhead apportionment to various departments?               Dec 2024, Dec 2023

3. What do you mean by under absorption and over absorption of Overheads? How do they arise (2015)? How are they treated in cost accounts?  June 2025

4. Explain various methods for absorption of overheads. Explain re-apportionment of service departments. Dec 2023

Block 4: Methods of Costing

A. Job & Contract Costing

1. Explain job costing. Explain the features, advantages and disadvantages of job costing. Dec 2021, June 2022

2. What is contract costing? What are its features? Explain how profit is determined in case of an incomplete contract. Dec 2021, Dec 2024

3. Distinguish between Job costing and contract costing.  Dec 2025

B. Process Costing

1. What is process costing? What are the fundamental principles of Process Costing? Point out the advantages and limitations of Process costing.  

2. Explain the treatment of various types of losses in process accounting. Dec 2021, Dec 2024, Dec 2025

3. Explain Joint Product and By-product treatment with examples. Dec 2024, Dec 2025

C. Operating/Service Costing

1. What do you mean by service costing or operation costing? In which industries service costing is applied? Explain its purposes and limitations.  June 2023, Dec 2025

2. What is Reconciliation Statement? Explain the need for Reconciliation of cost and financial accounts. State the reasons for the difference between the profits shown in the cost accounts and those shown in the financial accounts.

Short Notes / Theory Concepts: These have appeared as either short notes or part of 20-mark questions:

- Fringe Benefits (Dec 2021)

- Integral Accounting (June 2023)

- Purchase Requisition (June 2023, Dec 2023)

- Centralised and Decentralised Purchasing (Dec 2025, June 2023)

- By-product & Joint product (Dec 2021, June 2023, Dec 2025)

- Service Costing (Dec 2021, June 2023, Dec 2025)

- Purchase Order (Dec 2023)

- Depreciation (Dec 2023)

Practical Questions asked in Previous exams

Practical Problems Topic	Years in which Asked
Cost Sheet preparation	Dec 2021
Store Ledger (FIFO / LIFO)	Dec 2024, June 2024, June 2023, Dec 2023, Dec 2025
EOQ Calculation	Dec 2023, Dec 2021
Material Cost Per Unit	June 2022
Labour Cost / Wage Sheet	Not directly practical Problems given
Apportion overheads between departments	Dec 2024, June 2024, Dec 2023, Dec 2025
Machine Hour Rate	Dec 2024, June 2024, Dec 2023
Operating Costing (Passenger-km / Ton-km)	June 2025, Dec 2024, June 2024, Dec 2021
Contract Costing (Contract Account)	Dec 2025, June2025, Dec 2024, June 2023, Dec 2021
Process Costing (Abnormal Loss, Joint Product)	June 2025, Dec 2024, Dec 2023, June 2023
Reconciliation of Cost & Financial Profit	Dec 2025, June 2025, Dec 2024