Accounting For Decision Making TU Board 2023 question paper

Define management accounting.

Write the meaning of product cost.

Define the meaning of cost sheet.

The following cost and output details are provided to you: Cost (Rs)60,00090,000Output units4,0007,000 Required: Total cost for 5,000 units.

The sales revenue and earned profit of a special industry during two years were as follows: YearSales Revenue (in Rs)Profit (in Rs)201810,00,0002,00,000201912,00,0003,00,000 Required: Profit volume ratio.

The cash flows during the expected life of the machine are given below: Years01234Cash flows (Rs)(30,000)11,00012,00010,00010,000 Required: Payback period.

What are the differences between financial accounting and cost accounting.

Explain Job Order Costing with example.

The net loss as shown by the financial account of a company is Rs 30,000. On the reconciliation following facts were disclosed: ➤ Income tax paid Rs 40,000 shown in financial account only. ➤ Administrative expenses over charged in financial account Rs 20,000 ➤ Interest on investment credited in financial account Rs 5,000 ➤ Depreciation charged in financial account Rs 10,000 and in cost account Rs 8,000. Required: Cost Reconciliation Statement

Manufacturing company has the following relevant information: Direct material Rs 10 Direct labour Rs 8 Variable manufacturing cost per unit Rs 5 Selling price per unit Rs 30 Fixed manufacturing overhead per unit Rs 5 Fixed selling expenses Rs 72,000 Variable selling expenses Rs 6% of sales Normal capacity 30,000 units Production 28,000 units Sales 30,000 units Required: Income statement under variable costing.

The following information of production at 80% capacity i.e. 8,000 units is provided: Items of costCost (in Rs)Direct materials120,000Direct labour80,000Factory overhead (40% fixed)80,000Selling and administrative overhead(60% fixed)60,000 Required: Flexible budget for the production level at 60% and 90% capacity.

A Manufacturing Company has furnished following information: Direct materials Rs 70,000 Direct labour Rs 120,000 Direct expenses Rs 30,000 Factory rent Rs 30,000 Salaries Rs 10,000 Sales commission Rs 5,000 Office rent Rs 20,000 Advertising expenses Rs 20,000 Net profit 20% of cost During the year, the company produced 10,000 units of finished product. Required: Cost sheet showing total cost and profit or loss.

"The break-even analysis is a useful device of profit planning". Discuss.

"Management reporting provides adequate business information to various levels of management in the form of reports and statements at regular intervals". Comment.

The following information of sales, purchase and expenses are given below: Sales of different months are: AshadhRs 150,000BhadraRs 200,000ShrawnRs 100,000AswinRs 250,000 50% of sales are for cash and rest on credit which will be collected next months of sales. All purchase and expenses are paid on same months which are as follows: MonthShrawnBhadraAswinExpensesRs 30,000Rs 30,000Rs 30,000PurchasesRs 40,000Rs 80,000Rs 100,000 The company would like to purchase a computer at a cost of Rs 80,000 in the month of Shrawn. The company would like to maintain a uniform cash balance of Rs 20,000 which the company has maintaining in the past. If there is any deficit company can borrow from the commercial bank. The company can borrow and repayment of loan on a multiple of Rs 10,000 with 12% interest rate, which will be paid at the time of loan repaid. Required: Cash budget for three months Shrawan, Bhadra and Ashwin.

The information of Process B are given below: ➤ 7,000 units (@ Rs 12 per unit) of output were transferred from Process A to Process B. ➤ Normal loss in the Process B is estimated 10% (Scrap value per unit Rs 8 each.) ➤ Expenses incurred in Process B: Direct material cost (2,500 units) Rs 30,600 Direct labour cost Rs 102,000 Factory overheads @ Rs 5 per unit of material consumed ➤ 8,700 units transferred to process C. Required: a. Process B account. b. Normal loss account. c. Abnormal gain account.

The Himalayan Fertilizer Corporation manufactures fertilizer after completing three processes. The following information is related to the three processes. ParticularsProcess P1Process P2Process P3Raw materials introduced5,000--Cost of material per units (Rs)Rs 25.5--Direct wagesRs 78,800Rs 69,640Rs 30,000Factory overheadsRs 30,000Rs 25,000Rs 10,550Weight loss5%10%20%Normal loss40 units36 units20 unitsScrap value of normal lossRs 20Rs 15Rs 100Actual output4,710 units2,770 units1,120 unitsSelling price per units of outputRs 40Rs 150Rs 200Output transferred to next process2/3½-Output sold at the end of each process1/3½100% Required: Process account by showing profit of each process.