Gauhati University Question Papers
COST AND MANAGEMENT ACCOUNTING (May-June’ 2017)
Full Marks: 80
Time Allowed: 3 hours
GROUP – A
COST ACCOUNTING
Marks: 40
Answer either in
English or Assamese
The figures in the
margin indicate full marks for the questions
ANSWER ALL THE
QUESTIONS AS DIRECTED
1.
Answer the following as directed: 1x6=6
a) Fixed
cost does not change in the same proportion in which output changes. (Write
True or False)
b) LIFO
method of pricing issue is useful during period of inflation. (Write True or
False)
c) Abnormal
idle time cost of factory should be charged to production overhead. (Write True
or False)
d) The
rate of change in the composition of labour force in the organisation is called
_____. (Fill in the blank)
e) When
the actual cost incurred is less than the standard cost, the variance is known
as _____. (Fill in the blank)
f) The
most of advantages buying quantity/pattern to adopt is determined by computing
the:
1) Re-order
level.
2) Optimum
stock level.
3) EOQ.
4) Lead
time.
(Choose the correct answer)
2.
Answer the following questions: 2x2=4
a) What
is Cost Sheet?
b) Write
any two differences between Bin-Card and Stores Ledger.
3.
Answer any two questions from the following:
a) What
are the different methods of payment of remuneration to labourers? Briefly
explain any one of them. 5
b) Write
the basis of apportionment of the following overheads: 5
1) Factory
rent.
2) Electricity
bill for light.
3) Depreciation
of machinery
4) Electric
power bill.
5) Supervision
expenses
6) Stores
overhead.
7) Canteen
expenses.
8) Repair
and maintenance.
9) Building’s
depreciation.
10) Hospital
expenses.
c) What
is Economic order quantity? Calculate EOQ from the following information: 2+3=5
|
Monthly consumption
of raw materials
Cost of placing an
ordering
Cost of material
Carrying cost
|
250 units
Rs. 30 per order.
Rs. 5 per unit
10% of the material
cost
|
4.
Answer the following questions: 10x2=20
(a)
Explain costing as an aid to management.
Or
Calculate the material price variance, material usage
variance, material mix variance and material cost variance from the following
data:
Consumption
per 100 units of product
|
Material
|
Standard
|
Actual
|
|
A
B
|
40 units @ Rs. 50 per unit
60 units @ Rs. 40 per unit
|
50 units @ Rs. 50 per unit
60 units @ Rs. 45 per unit
|
(b)
Explain purchasing procedure of material.
Or
A Ltd. has four departments. The following are the expenses
for a period of 3 months:
|
|
Rs.
|
|
Rent
Repairs
Depreciation
Light
Supervision
Insurance of Plant
Employees Insurance
Power
|
1,000
600
450
100
1,500
500
150
900
|
|
Departments
Area (sq. ft.) 75
Total wages (in Rs.)
No. of workers
Value of plants (in
Rs.)
|
A
55
4,000
12
12,000
|
B
45
3,000
8
9,000
|
C
25
2,000
6
6,000
|
D
1,000
4
3,000
|
Prepare
a statement showing the appropriation of costs to the various departments.
GROUP – B
MANAGEMENT ACCOUNTING
Marks: 40
5.
Answer the following questions as directed: 1x6=6
a) Management
Accounting deals with the presentation of information in such a way so as to
assist management. (Write True or False)
b) A
budget prepared in a manner so as to give the budgeted cost for various levels
of activity is known as _____. (Fill in the blank)
c) In
an undertaking with high fixed cost, break-even point can be attained at a
lower level activity. (Write True or False)
d) Flow
of funds means increase or decrease in working capital. (Write true or false)
e) Issue
of capital will mean _____ in working capital. (Fill in the blank)
f) Two
elements of current ratio are current assets and _____ (Fill in the blank)
6.
Answer the following questions: 2x2=4
a) What
is the significance of current ratio?
b) What
are the limitations of financial statements?
7.
Answer any two from the following questions:
a) What
is flexible budget? 5
b) What
is a solvency ratio? Calculate solvency ratio if the total liabilities to
outsiders are Rs. 2,00,000 and total assets are Rs. 6,00,000. 3+2=5
c) What
are the various types of financial statements? Explain any one of them. 5
8.
Answer the following questions: 10x2=20
a) Explain
the scope and objectives of Management Accounting in brief.
Or
From the following data, you are
required to calculate:
1) P/V
ratio.
2) Break-even
sales.
3) Sales
required to earn a profit of Rs. 4,50,000.
4) Break-even
point in units.
5) What
should be the selling price per unit, if the break-even point is reduced to
5,000 units?
Given:
|
Fixed cost
Variable cost per
unit:
Direct material
Direct labour
Direct expenses
Selling price
|
Rs. 1,00,000
Rs. 6 per unit
Rs. 2 per unit
Rs. 2 per unit
Rs. 20 per unit
|
b)
What are the advantages and disadvantages of
budgetary control?
Or
With the following data for a
60% activity, prepare a Flexible Budget for production at 80% capacity:
|
Production at 60%
capacity
Materials
Labour
Direct expenses
Factory overheads
Administrative
expenses
|
6,000 units
Rs. 100 per unit
Rs. 40 per unit
Rs. 10 per unit
Rs. 40,000 (60%
variable)
Rs. 30,000 (60%
fixed)
|
***
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