Cost and Management Accounting TU Board 2078 question paper

State any two importance of cost accounting.

What is replacement cost?

Explain about "Just in Time" inventory policy.

What is budget?

Define the meaning of by-product.

The following information is available in respect of a material. • Maximum stock level = 12,000 units • Maximum consumption = 1,000 units • Average consumption = 800 units • Delivery period = 8 days - 10 days • Re-order level = 7,200 Required: Reorder quantity

The following data are given to you: Standard output = 1,000 units Actual output = 1,200 units Cost per unit = Rs.20 Required: Total wages under Gant Task Bonus Scheme

The following information are provided to you: Production Department AProduction Department BFactory Rent (Rs)1,0003,000Depreciation (Rs)6,0009,000Machine hours1,0002,000 Required: Machine hour rate of the production departments

The following particulars are extracted from the records of a company: • Beginning and ending number of employees were 350 and 450 respectively. • Number of employees quit and discharged was 30 and 20 respectively. • Employees replaced during the period were 30. Required: Labour Turnover Rate under Separation Method

The following information are provided to you: Expected price of product = Rs.1,000 Expected discount = 10% on price Expected production cost of product = Rs.400 Expected designing cost of product = Rs.50 Required: Value of product

a. Differentiate between flexible budget and static budget. b. The sales forecasts for coming four months of a company are: MonthsChaitraBaishakJesthaAshadShawanOutputs (Units)10,0009,0008,00010,00011,000 Each unit of finished product needs 3 kg of material @ Rs.5 per kg. The company's has a policy of keeping ending inventory of finished goods in each month that will be equal to half month's sales and raw material is 50 percent of raw material required to same month's production need. Required: Production Budget and Material Purchase Budget for the three months from Baisakh to Ashad

a. Write down the limitations of cost volume profit analysis. b. A company produces two products A and B. Both products are produced on the same equipment and use similar processes. The information for output and the cost of activities are given below: Product XProduct YOutput in units2,0004,000Machine hour per unit43No. of Purchase Orders2030No. of Set-ups80120 The indirect cost of the different activities is Rs.500,000 which is apportioned as follows: Volume Related 40% Purchase Related 40% Set-up Related 20% Required: Cost Per Unit under Activity Based Costing method

The following information are given: Standard: MaterialQuantityStandard Price per kgA8Rs.5B2Rs.6C10Rs.7 Actual: MaterialQuantityActual Price per kgA120Rs.4B80Rs.5C200Rs.8 Standard Loss is 10% and Actual output is 390 kg Required: Material Variances

The sales revenue and profit of a manufacturing company for two years were as follows: YearSales Revenue (Rs)Profit (Rs)2077200,0008,0002078300,00028,000 Required: i) Profit volume ratio ii) Fixed cost iii) Brake-even point in Rs. iv) Break-even point in units if selling price per unit is Rs.10 iv) Sales to earn desired profit after tax of Rs.20,000 if tax rate is 25% v) Profit when sales are Rs.500,000 vi) Margin of safety if profit is Rs.25,000

What do you mean by cost reduction? Also explain the tools and techniques of cost reduction.

What is variable costing? Differentiate it from absorption costing with examples.

The following information up to 9 months i.e. 30th Magh of a renowned company who undertook a contract for erecting a sewerage treatment plant for Lalitpur Metropolitan for a total value of Rs 2,000,000 are provided: • Material = Rs.300,000 • Wages = Rs.400,000 • Overhead = Rs.100,000 • Plant = Rs.200,000 • Work certified was for Rs.1,200,000 and 75% of the same was received in cash • Value of work uncertified was Rs.45,000 • Material at site as on 30th Magh = Rs.30,000 • Depreciation on plant is 15% per year • Ignore depreciation of plant for the use on uncertified portion of the work Required: a. Contract Account b. Contractee's Account c. Work in Progress Account d. Balance Sheet

Product AB passes through two processes A and B before it is transferred to finished stock. The following information is obtained for the month of January: Process A (Rs.)Process B (Rs.)Finished Stock (Rs.)Opening Stock12,00015,00020,000Direct Material30,00040,000-Direct Wages25,00030,000-Factory Overhead20,00030,000-Closing Stock7,00015,00020,000Inter-process profit included in Opening Stock-3,1259,750 The output of process A is transferred to process B at 25% profit on the cost price. The output of process B is transferred to finished stock at 25% profit on cost price. The stocks in process are valued at prime cost. The finished stock is valued at the price at which it is received from process B. Sales during the period are Rs.300,000 Required: a. Process Account b. Finished Stock Account c. Actual realized profit d. Stock valuation for Balance Sheet purpose (5+5+3+1+1)

"Management accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information for achieving an organization's goals". Discuss.