Cost and Management Accounting TU Board 2082 question paper

State any two importance of cost accounting.

Define direct cost with suitable examples?

Write any two motives of holding inventory.

Write any two causes of labour turnover.

What do you mean by service costing?

Following information is given : Annual requirement: 3600 units @ Rs. 20 each Carrying cost: 10% of inventory value Cost of placing an order: Rs. 400 Required: Number of order of EOQ.

Difference in total cost is Rs. 100,000 between 40,000 units and 20,000 units. The total fixed cost is Rs. 200,000. Required: Total cost for 30,000 units.

The following data are given to you: Standard output = 1,000 units Actual output = 1,200 units Normal price rate = Rs. 20 Required: Total wages under Taylor's differential piece rate system.

Following information are supplied to you: Consumption per day: 800 – 1200 units Re-order period: 3 – 5 days Maximum stock level: 6000 units Required: Re-order quantity.

Following particulars are provided: Cost of selection: Rs. 25,000 Training cost: Rs. 20,000 Cost of welfare services: Rs. 22,000 Pension scheme: Rs. 15,000 Loss due to inefficiency of new workers: Rs. 20,000 Average no. of workers: 1000 No. of workers replaced: 200 Required: Preventive cost per employee.

(a) What is job order costing? Explain the importance of job order costing. [2+3] (b) Following are the particulars of an industry manufacturing two products X and Y: ProductOutput in unitsMachine hour per unitNo. of set upsNo. of OrdersX2,00044020Y4,00036030 The overhead cost and cost drivers are as follows: ActivitiesCost driversOverheadsVolume related costMachine hoursRs. 200,000Set ups costNo. of set upsRs. 200,000Purchase related costNo. of ordersRs. 100,000 Required: Cost per unit under Activity Based Costing method. [5]

(a) Explain the characteristics of joint product and by-product. [5] (b) The following information are given: MaterialsStandardActualQuantityPrice (Rs.)QuantityPrice (Rs.)A60%Rs. 8 per kg50 kgRs. 9 per kgB40%Rs. 5 per kg250 kgRs. 8 per kg Standard loss is 10% and actual output is 280 kg. Required: Material variances. [5]

A manufacturing company with normal capacity of 30,000 units provides the following particulars: Productions units25,000Sales units26,000Closing stock units4,000Direct material per unitRs. 6Direct labour per unitRs. 4Variable manufacturing cost per unitRs. 5Variable selling expenses per unitRs. 2Selling price per unitRs. 30Fixed manufacturing OH per unitRs. 5Fixed administrative and selling expensesRs. 72,000 Required: a. Income statement under absorption costing system. b. Reconciled profit under variable costing system. [7+3]

The sales revenue and total cost of a manufacturing company for two years were as follows: YearSales revenuesTotal CostIRs. 450,000Rs. 400,000IIRs. 700,000Rs. 600,000 Required: a. Profit volume ratio b. Fixed cost c. Break-even point in Rs. d. Break-even point in units if selling price per unit is Rs. 10 e. Sales to earn desired profit after tax of Rs. 75,000 if tax rate is 25% f. Profit when sales are Rs. 80,000 g. Margin of safety if profit is Rs. 125,000 [1+1+2+1+2+1+2]

"Budget is an important tool for the development of organizations." Explain. [10]

Define management accounting. Explain the importance of management accounting in the modern business world. [10]

The following is a summary of the entries in a contract ledger as on 31st Chaitra 2081. Material purchasedRs. 70,000Material from storeRs. 200,000Direct labourRs. 100,000Site office expensesRs. 30,000Other expensesRs. 10,000Plant installedRs. 200,000Sub-contract costRs. 10,000 The additional information are as follows: i. 5% of the value of work certified still remained to be certified. ii. Material returned to store Rs. 8,000. iii. Material costing Rs. 15,000 sold at a profit of Rs. 1,000. iv. Depreciation on plant @ 15% p.a. v. Material at site Rs. 10,000 vi. Cash received from contractor Rs. 540,000 being 90% of work certified. vii. Contract price Rs. 900,000. Required: a. Contract account b. Contractee's account c. Work in progress account d. Balance sheet [7+2+2+4]

The following details are given to you: ParticularsProcess AProcess BProcess CRaw material used 1,000 kgRs. 60,000----Indirect materialRs. 52,000Rs. 39,600Rs. 59,240Labour costRs. 40,000Rs. 60,000Rs. 80,000Production overhead 100% of labourActual output kg950840750Normal loss5%10%15%Sale of scrap per kgRs. 40Rs. 80Rs. 100 Required: a. Process accounts b. Normal loss account c. Abnormal gain account d. Abnormal loss account [4+5+4+2]

"Cost reduction is the accomplishment of a permanent and real reduction in per unit cost of goods without compromising the value it is intended to deliver." Comment. And also differentiate between cost reduction and cost control.