DIBRUGARH UNVIERSITY - B.COM 4TH SEMESTER: COST ACCOUNTING IMPORTANT QUESTIONS AND MULTIPLE CHOICE QUESTIONS AND ANSWERS


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COST ACCOUNTING IMPORTANT QUESTIONS FOR UPCOMING EXAM (MAY, 2019)
PATTERN OF QUESTION PAPERS
1 MARKS = 8 QUESTIONS
4 MARKS = 4 FOUR SHORT NOTES
14 MARKS = 4 QUESTIONS

Unit – 1: Basic Concept of Cost Accounting (Part A) and Cost Sheet (Part B)
Q. What is Cost accounting? Discuss briefly the nature (2010) and objectives (2011) of Cost accounting.
Q. What do you understand by cost classification? Discuss the various bases of classification of costs and various types of costs.                               2015, 2016SN, 2017
Q. What are the advantages and limitations of cost accounting?
Q. “Cost accounting is an essential tool to the Management” –Comment.           2011, 2012
Q. Distinguish and also mention the relationship between
Ø  Cost accounting and Financial accounting                    2013SN, 2016SN, 2018SN
Ø  Cost accounting and Management Accounting
Q. “Cost accounting is better understood as a cost control and cost reduction exercise and not mere a cost ascertainment process”. Considering this statement explain the scope of cost accounting.         2010
Q. 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?            2012, 2014
Q. Write Short notes on:
Ø  Cost sheet or Statement of Cost                       2017SN
Ø  4 Methods of Cost accounting
Ø  4 Techniques of Cost accounting
Ø  Cost centre and Cost Unit
Or
Unit 1: Part B (Practical)
Practical Problems:
a) Cost sheet focusing on valuation of stock of finished goods, Keep in mind expenses ignored in cost accounts, preparation of cost sheet from financial records (refer unit 4 – Reconciliation), profit percentages given on cost price or sale price.         Every year
b) Follow 28 solved questions uploaded on my blog
c) Follow examples of BASU AND DAS COST ACCOUNTING BOOK.
Unit – 2: Material Control – Purchase and Issue (Part A)
Q. What do you mean by Inventory Control (2017SN)? What are its objectives (Need)? Explain the essentials of Material Control.             2014, 2015SN
Q. What are various techniques of Inventory Control? Explain them in detail.   2015SN, 2018
Q. Explain various methods of pricing of material issue together with their respective merits and demerits. 2013, 2015SN
Q. What do you mean by Perpetual Inventory system (2013SN)? What are its essential features? Explain its importance in material control.                                2016
Q. How Perpetual Inventory System differs from ABC analysis? State the advantages of ABC analysis.  2017
Q. Explain in brief the process of purchasing and receiving goods.
Q. “Store ledgers are essential to an efficient costing system”. Considering this statement highlight the uses and values of store ledgers. Distinguish between Store ledger and Bin Card (2015SN).
Q. Write Short notes on:
Ø  EOQ and its calculation                         2010, 2015
Ø  ABC analysis differs from VED analysis          2013, 2014, 2016SN
Ø  Perpectual (2018SN) and Periodical Inventory System
Q. Practical Questions:
a)      Calculation of EOQ with offer comparison, 2012
b)      Various levels of material – Reorder level, maximum level, minimum stock level.  2014
c)       Pricing of material issue – LIFO, FIFO, Weighted average and Simple average (focus of return and loss of goods).
Unit – 2: Labour cost – Computation and Control (Part B)
Q. What is idle time? What are its causes? How it is controlled? Explain the treatment of idle time in cost accounting.                                2012, 2014SN, 2016
Q. What are various methods of wage payment? Explain them briefly.                 2010
Q. Explain the essentials of a sound Incentive scheme.                 2010, 2018
Q. Discuss the principles of Premium Bonus Plan. Describe the salient features of Rowan Plan and Halsey Plan and also distinguish between Rowan and Halsey Premium Plan.                                2013, 2018
Q. Write short notes on:
Ø  Overtime and its treatment
Ø  Labour Turnover, its causes and Control Measure    2013, 2014, 2017SN, 2018SN
Ø  Time and motion study                         2014SN
Ø  Job Evaluation and merit rating
Ø  Idle time and overtime                         2015SN
Ø  Remuneration and Incentives           2015SN
Ø  Time keeping, Merit Rating (2014) and time booking
Q. Practical Problems:
Rowan and Halsey premium plan, straight piece rate and Taylor’s differential piece rate method, treatment of overtime and labour turnover. Follow practical problems given in Jain and Narang’s Book.         2012, 2013, 2014, 2015, 2016, 2017, 2018
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Unit 3: Part A (Overheads – Theory)
Q. What do you mean by overhead cost? Explain the various classification of overhead cost. Mention its significance.                2013, 2015
Q. 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?                       2013, 2017
Q. What do you mean by under absorption and over absorption of Overheads? How do they arise (2015)? How are they treated in cost accounts?                             2015, 2018
Q. Explain various methods for absorption of overheads.                            2016, 2017
Q. What is overhead codification? Mention is various methods. Explain its objectives and significance.
Unit 3: Part B (Overheads – Practical)
Q. Practical Problems:
Ø  Machine hour Rate                                 2013, 2015, 2016, 2017, 2018
Ø  Primary and secondary distribution of overheads from production department to service department. 2014
Follow examples of BASU AND DAS COST ACCOUNTING BOOK.
Unit – 4: Process Costing (Part A) and Reconciliation Statement (Part B)
Unit 4: Part A (Process Costing – Theory or Practical)
Q. What is Job costing (2018) and Process costing? Distinguish between job costing and process costing. 2016SN, 2017
Q. What are the fundamental principles of Process Costing? Point out the advantages and limitations of Process costing.
Q. Explain the meaning and treatment of Normal, Abnormal loss and abnormal gain in Process Accounts.           2017
Q. Practical Problems: Preparation of process accounts together with normal, abnormal loss and abnormal gain account, preparation of profit and loss account and costing profit and loss account, treatment of process finished stock and stock of raw material in process accounts. Follow examples of BASU AND DAS COST ACCOUNTING BOOK. 2013, 2016, 2018
Unit 4: Part B (Reconciliation Statement – Theory or Practical)
Q. What is Reconciliation Statement (2015SN, 2018SN)? 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.          2012, 2013SN, 2016, 2017SN, 2018
Q. Practical Problems: Preparation of reconciliation statement together with profit and loss account and cost sheet. Follow examples of BASU AND DAS COST ACCOUNTING BOOK.                                                2012, 2015, 2017
Q. Draft a format of Reconciliation statement.