103 Cost and Management Accounting Question Paper 2023 [DODLDU MCOM 1st SEM Question Paper]
Full Marks: 80
Time: Three hours
1. (a) What is Activity Based Costing? What
benefits does ABC provide? What are the differences between Activity Based
Costing and conventional costing? 4+6+6=16
Or
(b) Define Cost Accounting? Explain the
importance of Cost Accounting as a managerial tool. 4+12=16
2. (a) What is Process Costing? What are the
main features of Process Costing? Compare and contrast Process Costing with Job
Costing. 4+6+6=16
Or
(b) Modern Company Ltd. made a profit of Rs.
20,000 during the year 2023 as per their costing system, whereas their final
accounts disclose a profit of Rs. 15,000. From the following Profit and Loss
Account summarised by the company for the year ended on 31st March,
2023 as per the financial books, you are required to prepare a Reconciliation
Statement showing the causes for this difference: 16
|
Particulars |
Amt. |
Particulars |
Amt |
|
To opening Stock of
finished goods To Purchases To direct wages To factory expenses To gross Profit |
1,00,000 80,000 20,000 15,000 40,000 |
By Sales By closing stock
finished goods |
1,75,000 80,000 |
|
|
2,55,000 |
|
2,55,000 |
|
To administrative
expenses To selling expenses To net profit |
10,000 15,000 15,000 |
By gross profit |
40,000 |
|
|
40,000 |
|
40,000 |
Costing records show the following:
(1) Stock ledger closing
balance Rs. 89,000;
(2) Direct labour Rs.
23,000;
(3) Factory overheads Rs.
13,000;
(4) Administrative
overheads and selling expenses each are calculated at 8% of sales separately.
3. (a) “Analysis of Financial Statements is
the best way to judge the overall financial health of a company.” Explain the
statement with your justification. 16
Or
(b) From the following information of X Ltd.
for the year ended on 31st March, 2022 and 31st March, 2023,
prepare a Comparative Income Statement and comment on it:
|
|
31st March 2022 |
31st March 2023 |
|
Sales (net) Gross profit Operating Expenses: General and
Administrative Expenses Non-operating Expenses: Interest paid Income Tax Rate Non-operating / other
incomes |
Rs. 2,00,000 Rs. 1,20,000 Rs. 40,000 Rs. 30,000 50% Rs. 10,000 |
Rs. 2,40,000 Rs. 1,38,000 Rs. 50,000 Rs. 30,000 50% Rs. 12,000 |
4. (a) Discuss the significance of the
following ratios: 4x4=16
(1) Liquidity ratio.
(2) Profitability ratio.
(3) Activity ratio.
(4) Leverage ratio.
Or
(b) Following is the Income Statement of
Arvind and Co. for the year ended on 31st March, 2023: 16
|
Particulars |
Amt. |
|
|
Revenue from operations
(sales) Add: Other Income Interest on Investment Profit on fixed assets |
15,000 10,000 |
5,30,000 25,000 |
|
Total Revenue Less: Expenses Purchases Change in inventories (Opening stock – Closing
stock) (Rs. 1,00,000 – Rs.
1,20,000) Wages Administrative Expenses Selling and Distribution
Expenses Non-Operating Expenses |
3,40,000 (20,000) 5,000 30,000 90,000 20,000 |
5,55,000 4,65,000 |
|
Net Profit |
|
90,000 |
You are required to calculate:
(a) Gross profit ratio.
(b) Net profit ratio.
(c) Operating ratio.
(d) Operating profit
ratio.
5. (a) Define the term working capital. What
factors would you take into consideration in estimating the working capital
needs of a concern? 4+12=16
Or
(b) From the following information you are
required to estimate the net working capital: 16
|
|
Cost per unit (Rs.) |
|
Raw materials Direct labour Overheads (excluding
depreciation) |
400 150 300 |
|
Total cost |
850 |
Additional information:
|
Selling price Output Raw materials in stock Work-in-process: (Assume 50% completion
stage with full material consumption) Finished goods in stock Credit allowed to
debtors Credit allowed by
suppliers Cash at bank is expected
to be |
Rs. 1,000 per unit 52,000 units per annum Average 4 weeks Average 2 weeks Average 4 weeks Average 8 weeks Average 4 weeks Rs. 50,000 |
Assume that production is sustained during
the 52 weeks of the year. All sales are on credit basis. State any other
assumption that you might have made while computing.
Also Read: MCOM 1st SES Question Papers (Dibrugarh University - DODL)
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