ACC311 Cost And Management Accountancy

Cost And Management Accountancy TU Board 2019 question paper

18 questionsSit this paper (timed)

Tribhuvan University

Bachelor of Hotel Management

Semester 3 · TU Board 2019

Course Title: Cost And Management Accountancy (ACC311)

Full Marks: 60Pass Marks: 30Time: 3 Hrs

Candidates are required to give their answers in their own words as for as practicable.

Group A

Brief Answer Questions(10 × 1 = 10)

  1. 1.

    Give the meaning of cost accounting.

    1
  2. 2.

    What is financial accounting?

    1
  3. 3.

    Define semi-variable cost.

    1
  4. 4.

    Lalitpur company provides data for two different level of output and costs: Production unitsMixed costs (Rs)3508004101,400 Required: Variable cost per unit (VCPU)

    1
  5. 5.

    What is variable cost?

    1
  6. 6.

    What is make or buy decision?

    1
  7. 7.

    Following information is given to you: Variable cost per unit is Rs 85 Selling Price per unit Rs 102 Required: Contribution margin per Unit

    1
  8. 8.

    What is relevant cost?

    1
  9. 9.

    Define breakeven point.

    1
  10. 10.

    Briefly define menu costing.

    1

Group B

Short Answer Questions(6 × 5 = 30)

  1. 11.

    Distinguish between controllable and uncontrollable cost.

    5
  2. 12.

    What are the different between cost and management accounting?

    5
  3. 13.

    The cost of Indirect materials of a division for different levels of activities are given below: Production in UnitsCost (Rs)110225100210140290130255120235 Required: Segregates fixed and variable costs by using Least Square Method.

    5
  4. 14.

    The following data of a company are given to you. Fixed CostRs 90,000Selling price per unitRs 22Variable cost per unitRs 17 Required: i. P/V Ratio ii. BEP Sales in Units and Rupees. iii. Sales volume in Rs to earn after tax profit Rs 300,000 at a current tax rate of 25%

    5
  5. 15.

    The budget for manufacturing overhead of a concern for two levels of activity were as: Capacity50 %100 %Level of activity1,000 units2,000 unitsIndirect wagesRs 2,000Rs 4,000Consumable storeRs 1,500Rs 3,000Maintenance costRs 1,900Rs2,700Power and fuelRs 1,800Rs 2,200DepreciationRs 8,000Rs 8,000InsuranceRs 5,000Rs 5,000 Required: Flexible Budget for 60 % and 80 % level of activity in units.

    5
  6. 16.

    Golden co. has provided following cost and revenue information. Sales11,000 unitsProduction:7,000 unitsDirect Material cost:Rs 8 per unitDirect labor cost:Rs 4 per unitFixed Administrative cost:Rs 30,000Fixed Selling cost:Rs 10,000Fixed Manufacturing costRs 30,000Variable selling costRs 2 per unitOpening Stock:5,000 unitsSales Price per unit:Rs 40Normal output:10,000 units Required: Income statement under absorption costing for external reporting purpose.

    5

Group C

Comprehensive Answer Questions(2 × 10 = 20)

  1. 17.

    Prepare a cash budget of a business firm for Jan, Feb, and March from the information given below: MonthsSales (Rs)Purchase (Rs)Wages (Rs)Expenses (Rs)December120,00050,00020,00013,000January110,00060,00025,00014,000February10,00070,00022,00011,000March110,00040,00020,0009,000 Additional information: ➤ 60 % of the sales are for cash and remaining is collected in next month. ➤ 50 % of the purchases are for cash and balance is paid in next month. ➤ Wages are paid in same month. ➤ Bank loan installment of Rs 12000 need to be paid on February. ➤ Opening cash balance Rs 15,000

    10
  2. 18.

    Super shine company ltd. Is thinking about an investment on the following: Cost of electric machineRs 1,400,000Installation costRs 50,000Life of a machine5 yearsBook salvage valueRs 80,000Cash salvage valueRs 50,000Operating expenses per year is estimatedRs 2,50,000Machine produces11,000 units per yearSelling price per unitRs 85Corporate tax rate25 %Cost of capital10 % Required: a. Net cash outlay b. Annual depreciation amount c. Annual Cash flow after tax d. Final year's cash flow after tax e. Net present value and desirability of machine

    10

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