Question April-2010

THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH
CMA APRIL-2010 EXAMINATION

FOUNDATION LEVEL
SUBJECT: 001.PRINCIPLES OF ACCOUNTING.
Time : Three hours Full Marks: 100
 All questions are to be attempted.
 Show computations, where necessary.
 Answer must be brief, relevant, neat and clean.
 Start answering each question from a fresh sheet.
Q. No. 1.
OVERNIGHT AUTO SERVICE
Trial Balance As At December 31, 2009
Balance Sheet Accounts: Dr. Cr.
Tk. Tk.
Cash 18,592
Accounts Receivable 6,500
Shop Supplies 1,800
Unexpired Insurance 4,500
Land 52,000
Building 36,000
Accumulated Depreciation: Building 1,500
Tools and Equipment 12,000
Accumulated Depreciation: Tools and Equipment 2,000
Notes Payable 4,000
Accounts Payable 2,690
Income Tax Payable 1,560
Unearned Rent Revenue 9,000
Capital Stock 80,000
Retained Earnings 0
Dividends 14,000
Income Statement Accounts:
Repair Service Revenue 171,250
Advertising Expense 3,900
Wages Expense 56,800
Supplies Expense 6,900
Depreciation Expense: Building 1,500
Depreciation Expense: Tools and Equipment 2,000
Utilities Expense 19,400
Insurance Expense 13,500
Income Tax Expense 22,608 ________
Total 272,000 272,000
Adjustments:
(a) Shop Supplies used in December Tk. 600.
(b) Portion of Insurance Cost Expired in December Tk. 1,500.
(c) Depreciation on Building for December Tk. 150.
(d) Depreciation of Tools and Equipment for December Tk. 200.
(e) Earned one-third of Rent Revenue collected in advance from Harbor Cab. Tk. 3,000.
(f) Unpaid Wages owed to Employees at December 31, Tk. 1,950.
(g) Interest Payable accrued during December Tk. 30.
(h) Repair Service Revenue earned in December but not yet billed Tk. 750.
(i) Income Tax Expense for December Tk. 4,020 not accounted for.
Required:
(i) Ten column worksheet as at December 31, 2009.
(ii) Income Statement for the year ended December 31, 2009.
(iii) Balance Sheet as at December 31, 2009
[Marks: (15+5+5) = 25]
Page 1 of 51
FOUNDATION LEVEL
Q. No. 2.
This information is available for Navana Company as of July 31, 2009.
Cash on the books as of July 31, 2009 amounted to Tk. 21,327. Cash on Bank Statement for the same
date was Tk. 26,176.
A deposit of Tk. 2,610, representing cash receipts of July 31, did not appear on the bank statement.
A cheque for Tk. 960 returned with the statement was recorded incorrectly in the cheque registrar as
Tk. 690. The cheque was made for a cash purchase of merchandise.
Outstanding cheque totaled Tk. 1,968.
Bank service charge for July amounted Tk. 12.
The bank collection for Navana Company Tk. 6,120 on a note. The face value of the note was Tk.
6,000.
An NSF cheque for Tk. 92 from a client, Jalil Traders, came bank with the statement.
The bank mistakenly charged to the company account a cheque for Tk. 425 drawn by another
company.
The bank reported that it had credited the account for Tk. 170 in interest on the average balance on
July.
Required:
(i) Prepare Bank Reconciliation Statement as of July 31, 2009.
(ii) Prepare the necessary Journal Entries to adjust the Cash Account.
[Marks: (10+5) = 15]
Q. No. 3.
Clayco Company competes the following selected transactions during the year 2009.
July 14 Writes off a Tk. 750 Account Receivable arising from a sale to Briggs Company that
dates to 10 months ago. (Clayco Company uses the allowance method).
July 30 Clayco Company receives a Tk. 1,000, 90 days, 10% note in exchange for
merchandise sold to Sumrell Company (the merchandise cost Tk. 600).
August 15 Receives Tk. 2,000 cash plus a Tk. 10,000 note from JT Co. in exchange for
Merchandise that sells for Tk. 12,000 (its cost is Tk. 8,000. The note is dated August
15, bears 12% interest, and matures in 120 days.
Nov. 01 Competed a Tk. 200 credit Card sale with a 4% fee (the cost of sale is Tk. 150). The
cash is received immediately from the credit card company.
Nov. 03 Sumrell Company refuses to pay the note that was due to Clayco Company on October
28.
Nov. 05 Completed a Tk. 500 credit card sale with a 5% fee (the cost of sale is Tk. 300). The
payment from the credit card Company is received on Nov. 9.
Nov. 15 Received the full amount of Tk. 750 from Bridge Company that was previously
written off on July 14. Record the bad debts recovery.
Dec. 13 Received payment of principle plus interest from JT for the August 15 note.
Required:
Prepare the Journal Entries to record these transactions on Clayco Company books.
[Marks: 20]
Q. No. 4.
(a) “Accounting is an essential weapon to Management” – Explain.
(b) What do you mean by Interest Bearing Notes Payable and Non-Interest Bearing Notes Payable?
(c) What are the advantages of using the perpetual inventory system as compared with the periodic
system?
(d) What is EOQ? Explain its utility.
(e) Differentiate between preferred stock and common stock.
[Marks: (5 x 5) = 25]
Page 2 of 51
FOUNDATION LEVEL
Q. No. 5.
(a) What are the partnership agreement as per partnership act 1932?
(b) Sumi and Shuva has been partners for several years, operating “FAST MOVES” a moving
business. The business has its ups and downs, but overall quite successful. In recognition to
Sumi’s administrative responsibilities the profit and loss sharing agreement allows her salary of
Tk. 5,000, with the remainder shared equally. On January 1, 2000 Sumi and Shuva has capital
balances of Tk. 14,000 and 9,000 respectively. During 2000 Sumi withdrew Tk. 4,000 cash
from the partnership.
On December 2000 the net income of Tk. 11,000, cash 4000, other assets Tk. 29,000 and
accounts payable Tk. 3,000. Sumi and Shuva liquidate the partnership on January 1, 2001. On
that date other assets were sold for Tk. 35,000, creditors were paid and the partners received the
remaining cash.
Required:
(i) Prepare a schedule showing how the Tk. 11,000 net income for the year 2000 should be
divided between Sumi and Shuva.
(ii) Prepare a statement of partners capital accounts and Balance Sheet on December 31,
2000.
(iii) Give the Journal entries for liquidation on January 01, 2001.
[Marks: 15]
= THE END =
Page 3 of 51
CMA APRIL, 2010 EXAMINATION
FOUNDATION LEVEL
SUBJECT: 002. BUSINESS COMMUNICATION AND OFFICE MANAGEMENT.
Time: Three hours Full Marks: 100
 Answer any THREE questions from each part, where Q. No. 4 and 8 are compulsory.
 Use a fresh sheet for answering each question.
 All questions must be answered in English.
PART – A : BUSINESS COMMUNICATION
Q.No. 1.
(a) Describe the roles and importance of communication in management.
(b) What are the communication components and how do they interact?
(c) Explain the methods to develop learning, reading, listening and writing skills and ability to
communicate on your respective fields of knowledge.
[Marks: (4+4+7) = 15]
Q. No. 2
(a) Discuss the main points regarding importance of Business Letter.
(b) Discuss the different parts of a commercial letter.
(c) Draft a letter to the authority of an insurance company for an insurance claim of your company.
[Marks: (4+5+6) = 15]
Q. No. 3
(a) What are the major objects of a letter of application for appointment?
(b) Suppose you have been offered a position of CEO by XYZ Co. Ltd. Write a letter to the
Managing Director accepting the offer.
(c) Define report and distinguish between informal and formal reports.
[Marks: (5+6+4) = 15]
Q.No.4
Write short notes on any FIVE of the following:
(a) E-mail;
(b) Merchant Banking;
(c) Book Building Method;
(d) Online Banking;
(e) Foreign remittance;
(f) SEC;
(g) NBR;
(h) BOE; and
(i) WTO.
[Marks: (5  4) = 20]
PART – B : OFFICE MANAGEMENT
Q. No. 5.
(a) What is Office Management?
(b) Discuss the Importance and Necessity of Office Management?
(c) Discuss different Organizational structure of Banking sector, Corporation & Govt.
Office with a diagram.
[Marks: (3+3+9) = 15]
Page 4 of 51
FOUNDATION LEVEL
SUBJECT: 002. BUSINESS COMMUNICATION AND OFFICE MANAGEMENT.
Q. No. 6.
(a) What do you mean by Office Environment?
(b) Discuss the Importance of Office Manual.
(c) “Inter Office relationship, Co-ordination, mail operations, different office
correspondence is a must for better management of the office”. Do you agree with these
views? and why?
[Marks: (3+3+9) = 15]
Q. No. 7.
(a) Why location, Premises, layout, men and equipments are considered as factors of
efficient office organization?
(b) What are the steps involved in the process of office management?
[Marks: (10+5) = 15]
Q. No. 8.
Write short notes on any five of the following:
(a) E. commerce;
(b) Scientific office management;
(c) Supervising office employees;
(d) Job evaluation method;
(e) Indexing;
(f) Office attendance; and
(g) Training and motivation of employees.
[Marks: (5 x 4) = 20]
= THE END =
Page 5 of 51
FOUNDATION LEVEL
SUBJECT: 003. QUANTITATIVE TECHNIQUES.
 Answer any TEN questions, FIVE from each part.
 All questions carry equal marks; the notations refer to usual meanings.
PART – A : BUSINESS MATHEMATICS

Q. No. 1.
(a) Let U = {1, 2, 3, 4, 5, 6, 7, 8}, A = {1, 3, 5, 7}, B = {2, 4, 6, 8} and C = {2, 3, 4, 5}
Find the following sets:
(i) A  B, (ii) B∩C, (iii) A-B, (iv) B  ∩C 
(b) Solve the linear equations
2x + 3y = 5, 3x – 2y = 1 and state the geometrical meaning of the solution.
[Marks: (4+6) = 10]
Q. No. 2.
(a) For what value of k will be the quadratic equation -
X2 – (3k-1)x + (2k2+2k-11) = 0 have equal roots?
(b) Prove that - 2(sin6 + cos6) – 3(sin4 + cos4) + 1 = 0.
[Marks: (5+5) = 10]
Q. No. 3.
(a) Find the present value of Taka 5,000 due 5 years from now if interest is at 4% compounded
semi-annually.
(b) Find the equation of the straight line passing through the intersection of the straight lines
4x – 3y – 1 = 0, 2x – 5y + 3 = 0 and parallel to the line 4x + 5y = 6.
[Marks: (5+5) = 10]
Q. No. 4.
Work out the following:
5
3x 2
e
  logx dx 2 1  x 3 dx
t
(i) cos2t dt (ii) (iii)
e 1
[Marks: (3+3+4) = 10]
Q. No. 5.
(a) How many different words can be formed from the letters of the word “ALGEBRA” taken 3 at
a time?
(b) Solve for x
logx3 + logx9 + logx729 = 9
[Marks: (6+4) = 10]
Q. No. 6.
(a) Differentiate the followings with respect to x
2
(i) y = log 4x  3 (ii) y = xe x
1 3
(b) The total cost function of a firm is C = x – 5 x2 + 28x + 10, where C is the total cost and x is
3
output. A tax rate of Tk.2 per unit of output is imposed and the producer adds its to his cost. If
the market demand function is given by P = 2530 – 5x, where P is the price per unit of output,
find the maximizing output and price.
[Marks: (5+5) = 10]
Page 6 of 51
FOUNDATION LEVEL
Q. No. 7.
(a) Solve the following system of linear equations by matrix method–
x+y+z=6
5x – y + 2z = 9
3x + 6y – 5z = 0
x2 1
(b) If x = tan + sec show that - Sin =
x2 1
[Marks: (5+5) = 10]
PART – B : BUSINESS STATISTICS

Q. No. 1.
(a) Point out the difference between absolute and relative variation.
(b) The prices of a Pharmaceuticals Company shares in Dhaka Stock Exchange (DSE) and
Chittagong Stock Exchange (CSE) during the last ten months are recorded below:
Month DSE CSE Month DSE CSE

January 105 108 June 127 125
February 120 117 July 109 125
March 115 120 August 110 120
April 118 130 September 104 110
May 130 100 October 112 135
Determine the arithmetic mean and standard deviation of the prices of shares. In which market
the share prices are stable?
[Marks: (3+7) = 10]
Q. No. 2.
(a) Discuss the distinctive features of the binomial, passion and normal distributions. When does a
binomial distribution trend to become a normal distribution?
(b) A wholesale distributor of fertilizer products finds that the annual demand for one type of
fertilizer is normally distributed with a mean of 120 tones and standard deviation of 16 tones. If
he orders only once a year, what quantity should be ordered to ensure that there is only a 5
percent chance of running short?
[Marks: (5+5) = 10]
Q. No. 3.
(a) What is business forecasting? What are the assumptions on which business forecasting are
made?
(b) Calculate the trend values by the method of least squares from the following data given and
estimate the sales for the year 2008:
Year 2000 2001 2002 2003 2004

Sale of Tibet Beauty Soap (in million) 12 18 20 23 27
[Marks: (4+6) = 10]
Page 7 of 51
FOUNDATION LEVEL
Q. No. 4.
(a) Explain what do you understand by the ‘mathematical expectation’. How is it useful for a
businessman? Give an example to illustrate its usefulness.
(b) A factory finds that, on average, 20% of the bolts produced by a given machine will be
defective for certain specified requirements. If 10 bolts are selected at random from the day’s
production of this machine, find the probability (i) that exactly 2 will be defective, (ii) that 2 or
more will be defective, and (iii) that more than 5 will be defective.
[Marks: (4+6) = 10]
Q. No. 5.
(a) Define correlation. Explain correlation co-efficient r = 0, r = -1, r = 1.
(b) Experience and efficiency score of 8 workers are given below:
Experience (X) 16 14 17 6 4 5 10 3
Efficiency (Y) 23 21 22 16 18 19 18 20
Calculate the co-efficient of correlation and comment on the result.
[Marks: (3+7) = 10]
Q. No. 6.
(a) Explain type-I error and type-II error.
(b) Suppose you are a buyer of large suppliers of light bulbs. You want to test at the 5%
significance level, the manufacturer claims that his bulbs last more than 800 hours. You test 36
bulbs and find that the sample mean X is 8.16 hours and sample standard deviation  = 70
hours. Should you accept the claim?
[Marks: (3+7) = 10]
Q. No. 7.
(a) Define standard deviation and co-efficient of variation.
(b) The life of tube bulbs of two different companies are given below:
Life (in hours) No. of bulbs

Company – A Company – B
1000 – 1200 18 15
1200 – 1400 22 24
1400 – 1600 26 30
1600 – 1800 25 20
1800 – 2000 9 16
(i) Which company’s bulbs give a higher average life?
(ii) If the prices are same for the bulbs of both companies, which one you will purchase and
why?
[Marks: (3+7) = 10]
= THE END =
Page 8 of 51
FOUNDATION LEVEL
SUBJECT: 004. BUSINESS ECONOMICS AND INTERNATIONAL BUSINESS.
 Answer FIVE questions taking at least TWO from each Group “A” and “B”.
GROUP – A : BUSINESS ECONOMICS

Q. No. 1.
(a) What is the difference between average cost and marginal cost? Explain why marginal cost is
important for management decisions.
(b) Fill out the tables below with applicable amount:
Quantity (Q) Fixed Cost Variable Cost Total Cost Marginal Cost Average Cost
(FC) (VC) (TC) per unit per unit
0 550 - - - 550
1 - 300 850 - -
2 550 - - 250 -
3 - 750 - - -
4 - - 1,600 - -
5 550 - - - 420
(c) Explain when a firm may operate at loss.
[Marks: (8+8+4) = 20]
Q. No. 2.
(a) What are the monetary policy and fiscal policy? How those policies are important to managerial
decisions?
(b) Define the followings with relevant examples:
(i) Opportunity cost.
(ii) Accounting cost.
(iii) Economic cost.
(c) What are the differences between oligopoly market & monopolistic market? Give real life
examples from Bangladeshi markets.
[Marks: (8+6+6) = 20]
Q. No. 3.
(a) If the Bangladeshi Taka Depreciates 20 percent how this affect the export and import of a
Bangladeshi manufacturer?
(b) What are the good and bad effects of inflation on the economy?
(c) How does Central Bank of a country control inflation?
[Marks: (6+8+6) = 20]
Q. No. 4.
(a) What are the determinants of demand?
(b) What are the types of elasticities of demand? What is the implication of elasticity of
demand for Business?
(c) Calculate price elasticity, income elasticity, and cross elasticity from the following
figures:
Year Sales in Qty of X No. Price per unit of X Price per unit of Per Capita
in Tk. Y in Tk. income in Tk.
2000 30,000 30 15 20,000
2009 50,000 20 20 30,000
[Marks: (5+7+8) = 20]
Page 9 of 51
FOUNDATION LEVEL
SUBJECT: 004. BUSINESS ECONOMICS AND INTERNATIONAL BUSINESS.
Q. No. 5.
(a) What are the advantages of national income as a measure of economic performance of a
country? What are its limitations as indicator of well being of a nation?
(b) How is national income measured in Bangladesh?
(c) From the following data calculate National Income:
Taka in crores
Compensation of employees - 1866.3
Business interest payment - 264.3
Rental income of persons - 34.1
Corporate Profits - 164.8
Proprietor’s income - 120.3
Corporate Dividends - 66.4
Social Security contribution - 253.0
Personal taxes - 402.1
Interest paid by consumer - 64.4
Interest paid by Govt. - 105.1
Govt. and business transfers - 374.5
Personal consumption expenditure - 1991.9
[Marks: (6+4+10) = 20]
GROUP – B : INTERNATIONAL BUSINESS

Q. No. 6.
(a) What is international business? What are the alternative forms of international business?
(b) How global strategy is different from multi-domestic strategy? Give real life examples.
(c) In the context of trade liberalization explain your view on “Infant Industry Argument”.
[Marks: (6+8+6) = 20]
Q. No. 7.
(a) Explain the theory of comparative advantages. Do you think the theory is still important in
today’s world context?
(b) What are the factors that influence Foreign Direct Investment?
[Marks: (12+8) = 20]
Q. No. 8.
(a) What do you mean by the term back to back letter of credit?
(b) What is the mode of exports financing in Bangladesh?
(c) What are the advantages and disadvantages of pre-shipment inspection in Bangladesh?
(d) What are the main problems faced by the Exporting firms of Bangladesh in doing their
business?
[Marks: (5+5+5+5) = 20]
= THE END =
Page 10 of 51
PROFESSIONAL LEVEL-I
SUBJECT: 101. INTERMEDIATE FINANCIAL ACCOUNTING.
Q. No. 1.
(a) How the direct and indirect methods differ in their approach to computing the cash provided by
operating activities?
(b) The following are the Balance Sheets of Moonlight Ltd. as at 30 June 2009 and 2008:
Assets 2009 2008 Liabilities and Equity 2009 2008
(Taka) (Taka) (Taka) (Taka)
Cash in Hand 80,00,000 70,00,000 Accounts Payable 1,01,50,000 95,50,000
Trade Debtors 1,12,80,000 1,16,80,000 Income Tax Payable 3,00,000 5,00,000
Stock in Trade 1,85,00,000 1,71,50,000 Dividend Payable 8,00,000 9,00,000
Fixed Assets 3,30,70,000 2,96,70,000 Finance Lease Obligations 40,00,000 …………
Accumulated Depreciation (1,16,50,000) (1,04,00,000) Share Capital 50,00,000 50,00,000
Investment in B Ltd 30,50,000 27,50,000 Share Premium 1,50,00,000 1,50,00,000
Loan Receivable 27,00,000 ………… Un-appropriated Profit 2,97,00,000 2,69,00,000
Total 6,49,50,000 5,78,50,000 6,49,50,000 5,78,50,000
Additional Information:
(i) On 30 June 2008, Moonlight Ltd. acquired 25% shares of B Ltd. for Tk.27,50,000. On that date
the carrying value of B’s assets and liabilities, approximately their fair value was
Tk.1,10,00,000. B Ltd. reported income of Tk.12,00,000 for the year ended 30 June 2009.
(ii) During financial year 2009, Moonlight lent Tk.30,00,000 to Sunlight Ltd. Sunlight paid the 1st
installment (including interest) of Tk. 3,00,000 on 1st April 2009.
(iii) On 2 July 2008, Moonlight Ltd. sold equipment costing Tk.6,00,000 with a carrying amount of
Tk.3,50,000 for Tk.4,00,000.
(iv) On 30 June 2009, Moonlight Ltd entered into finance lease for machinery. The PV of the rental
payment is Tk.40,00,000 which equals the fair value. Moonlight Ltd. made the first rental
payment of Tk.6,00,000 when due on 2 July 2009.
(v) Net Income for the year 2009 was Tk.36,00,000.
(vi) Moonlight Ltd. declared and paid cash dividend as follows:
Head 2009 2008
Declared 15 June 2009 15 June 2008
Paid 30 August 2009 30 August 2008
Amount Tk.8,00,000 Tk.9,00,000
Required:
Prepare the cash flow statement following the IAS-7 (indirect basis). Also show your workings.
[Marks: (5+15) = 20]
Q. No. 2.
(a) What effect would the use of the LIFO inventory method have upon the applicability of the
gross profit method of valuing inventory?
(b) The Ainge Company values its perpetual inventory at the lower of FIFO cost or market. The
inventory accounts at December 31, 2009 had the following balances:
Taka
Raw Materials 81,000
Allowance of Reduce Raw Material Inventory from cost to market 5,700
Work in Process 1,31,520
Finish Goods 2,05,200
Page 11 of 51
Q. No. 2. (Contd..)
The following are some of the transactions that affected the inventory of the Ainge Company
during 2009:
Feb 10 Purchased raw materials at an invoice price of Tk.30,000; term 3/15, n/30 Ainge
Company uses the net method of valuing inventories.
Mar 15 Ainge Company repossessed an inventory item from a customer who was overdue in
making payment. The unpaid balance on the sale was Tk.175. The repossessed
merchandise is to be refinished and placed on sales. It is expected that the item can be
sold for Tk.250 after estimated refinishing cost of Tk.50. The normal profit for this
item is considered to be Tk.40.
Apr 01 Refinishing costs of Tk.55 are incurred on the repossessed item.
Apr 10 The repossessed item is resold for Tk.250 on account; 20% down.
May 30 A sales on account is made of finished goods that have a list price of Tk.740 and a
cost of Tk.480. A reduction from the list price of Tk.100 is granted as a trade-in
allowance. The trade-in item is to be priced to sell at Tk.80 as is. The normal profit on
this type of inventory is 25% of the sales price.
Nov 30 Ordered materials to be delivered January 31, 2010, at a cost of Tk.21,600. No
discount terms were included.
Dec 31 The following information was available to adjust the accounts for the annual
statements:
(a) The Market value of items ordered on November 30 had declined to tk.18,000.
(b) The raw material inventory account had a cost balance of Tk.1,10,400. Current market
value was Tk.1,01,400.
(c) The finished goods inventory account had a cost balance of Tk.1,77,600. Current market
value was Tk.1,89,000.
Required:
Record this information in Journal entry form, including any required adjusting entries at
December 2009.
[Marks: (5+15) = 20]
Q. No. 3.
(a) What are the general rules for recording gains and losses on retirement of Plant Asset?
(b) Plant acquisitions for selected companies are as follows:
(i) B.Co. acquired land, building and equipment from a bankrupt co. for a lumpsum price of
Tk.700,000. At the time of purchase, the seller had the following book and appraisal
values:
Head Book value Appraisal value
Land Tk.200,000 Tk.150,000
Buildings 250,000 350,000
Equipment 300,000 300,000
(ii) H. Enterprise purchased stores equipment by making a Tk.2,000 cash down payment and
signing a one year, Tk.23,000, 10% note payable.
(iii) Kim Co. purchased office equipment for Tk.20,000, terms 2/10, n/30. The company
policy was to take the discount facility.
(iv) Kissam Co. received at zero cost a piece of land fro a donor. The appraisal value of the
land is Tk.27,000.
(v) Zabed Traders built a warehouse for Tk.600,000. It could have purchased the building for
Tk.740,000.
Required: Prepare the entries that should be made at the date of each acquisition.
(c) 10 year bonds at par valued of Tk.800,000 dated January 1, 2006 bearing interest @ 10%
payable semi-annually on January 1, and July 1, are issued on March 1, 2006, at Tk.102 plus
accrued interest. Give entries on March 1, 2006.
[Marks: (5+10+5) = 20]
Page 12 of 51
Q. No. 4.
(a) How do you distinguish between cash basis accounting an accrual basis accounting? How does
accrual basis affect year-end closing?
(b) Prime Business Company presented their financial statements for one year to 30 June 2000 to
their auditors. The audit assistant made the following comments in respect of the income
statement.
(i) Closing inventory excluded one consignment of Tk. 50,000 shipped to a foreign buyer
early June. But the buyer is not expected to receive goods before August 2000.
(ii) Inventory included Tk. 60,000 being cost of goods sent to an Indian merchant under
consignment agreement. The consignee did not send account sale in respect of the
consignment.
(iii) Inventory included goods worth Tk. 40,000 which were sold but still lying in a separate
room under lock and key. The key of the store was with the buyer.
(iv) While doing physical inventory no recognition was made of goods costing of Tk. 20,000
stolen from the warehouse. The insurer accepted a claim of Tk. 15,000 against this.
(v) No depreciation was charged in respect of an equipment sold in early June 2000 at Tk.
80,000. Cost of the equipment was Tk. 500,000 and accumulated depreciation associated
with it was 400000 up to June 1999. The company recognized a loss of Tk. 20,000 on the
sale transaction. The company charges depreciation @ 10% on its equipment. 50% of
depreciation is charged to factory overhead and 50% to administration cost.
(vi) Advanced made during the year to a research firm the tune of Tk. 100,000 remained
unadjusted though the firm submitted its report within June and was paid balance amount
of Tk. 50,000 (this amount was properly charged to revenue expenses).
(vii) Taka 52,000 received as sales advance was recorded in the books as sales.
(viii) Taka 200,000 received from one of the retired President of the constitute a staff
benevolent fund was recognized as other income.
(ix) Interim divided of 10% declared and paid on 500,000 shares of Tk. 10 each was charged
to Income Statement as expense.
(x) Bank charge of Tk. 2,700 was not taken into account.
(xi) A cheque of Tk. 25,000 issued to a creditor in October 1999 is still outstanding. The
creditor has request for a fresh cheque.
(xii) The company reported a gross profit of Tk. 2,220,000 and a net profit of Tk. 650,000.
Required: Prepare a statement showing how the points raised by the audit assistant will affect the
Gross Profit and Net Profit.
[Marks: (5+15) = 20]
Q. No. 5.
(a) What are the similarities and difference among the terms depreciations, depletion and
amortization?
(b) The Monalisa Co. Ltd. was organized in September, 2001 with an authorized capital stock of
200000 shares of 1% cumulative preferred stock with Tk. 40 par value and 1000000 shares of
no par common stock with Tk. 30 stated value. During the rest of the year, the following
transactions relating to capital stock were completed.
Oct. 1 Subscriptions were received for 300000 shares of common stock at Tk. 42 and
payable Tk. 22 down and the balance in two equal installments due in November-1
and December-1. On the same date 16500 shares of common stock were issued to
Mr. Williams in exchange for his business. Assets transferred to company were
valued as follows:
Page 13 of 51
Q. No. 5. (Contd..)
Land – Tk. 210,000, Buildings – Tk. 250,000, Equipments – Tk. 50,000, and
Merchandise – Tk. 110,000. Liabilities of the business assumed by the company
were: Mortgage payable Tk. 41,000, Accounts payable – Tk. 11,000, Accrued
interest on the mortgage – Tk. 550. No goodwill is recognized in recording the
issuance of the stock for net assets.
Oct 3 Subscriptions were received for 120000 shares of preferred stock at Tk. 45, payable
Tk. 15 down and the balance in two equal installments due November- 1 and
December – 1.
Nov. 1 Amounts due on this date were collected from all common and preferred stock.
Nov. 2 Subscriptions were received for 480000 shares of common stock at Tk. 44, payable
Tk. 22 down and the balance in two equal installments due on December – 1 and
next January – 1, (2002).
Dec. 1 Amounts due on this date were collected from all common stock subscribers and
stock fully paid for was issued. The final installment on preferred stock subscription
was received from all subscribers except on whose installment due on this date was
Tk. 9,000. State corporation laws provide that the company is liable for the return to
the subscriber of the amount received less the loss on the subsequent resale of the
stock. Preferred stock fully paid for was issued.
Dec. 6 Preferred stock defaulted on December – 1 was issued for cash at Tk. 36 each stock
was issued and settlement was made with the defaulting subscriber.
Required: Journal entries to record the transactions listed above.
[Marks: (5+15) = 20]
= THE END =
Page 14 of 51
SUBJECT: 102. COST ACCOUNTING.
Q. No. 1.
(a) Jubayer Company sells a number of products to many restaurants in the area. One product is a
special meat cutter with a disposable blade. Blades are sold in a package of 12 blades at Tk. 20
per package. It has been determined that the demand for the blades is at a constant rate of 2,000
packages per month. The packages cost to the company is Tk. 10 each from the manufacturer
and require a three-day lead time from date of order to date of delivery. The ordering cost is Tk.
1.20 per order, and the carrying cost is 10% per annum. The company uses the economic order
quantity formula.
Required:
(i) Compute the economic order quantity.
(ii) Compute the number of orders needed per year.
(iii) Compute the cost of ordering and of carrying blades for the year.
(b) The following information has been gathered with regard to material X:
Normal monthly uses 1,400 unit
Maximum anticipated monthly uses 2,000 units
Minimum anticipated monthly uses 600 units
Delivery period from suppliers:
Maximum: 4 months, Normal: 3 months, Minimum: 2 months.
Economic order quantity 6,000 units.
Required: (i) Reorder level.
(ii) Maximum stock level.
(iii) Minimum stock level.
[Marks: (15+10) = 25]
Q. No. 2.
(a) What is the purpose of cost of production report?
(b) Rainbo Company uses process costing in accounting for its production department, which uses
two materials. Material A is added at the beginning of the process. Inspection is at the 90%
stage. Material B is then added to the good units. Normal spoilage units amount to 5% of good
output. Company records contain the following information for January 2010.
Started during the period 10,000 units
Material A Tk. 13,370
Material B Tk. 4,500
Direct labor cost Tk. 37,580
Factory overhead Tk. 46,975
Transfer to finished goods 7,000 units
Ending inventory (95% complete and include all material B) 2,000 units
Required:
Prepare a cost of production report.
[Marks: (5+15) = 20]
Page 15 of 51
Q. No. 3.
(a) What is the purpose of an incentive wage plan?
(b) For the first week in March, the record of J. Rahat shows:
Hours Worked Units Produced
Monday 8 90
Tuesday 8 100
Wednesday 8 110
Thursday 8 112
Friday 8 96
Rahat’s hourly wages rate is Tk. 6 and standard production is 12 units per hour. Factory
overhead per labor hour is Tk. 3.
Required:
(i) If Rahat receives 90% of the labor value of time saved during a day, prepare a schedule to
show Rahat’s pay, using the following headings:
Day Premium wage
Units Produced Total Pay
Daily Wage Labor Cost per Unit
Units Above Standard Overhead per Unit
Hours Saved Conversion Cost per Unit
(ii) If 100 percent bonus plan is used (for each week’s total production), prepare a schedule to
show Rahat’s pay, using the following headings:
Hours Worked Base x Efficiency Ratio
Units Produced Week’s Earnings
Standard Production Labor Cost per Unit
Efficiency Ratio (nearest %) Base Wage Conversion Cost per Unit
(iii) If the daily quota of standard production is 96 units and the hourly rate increases 5% for
total wages for each day of quota production and above, prepare a schedule to show
Rahat’s pay, using the following headings:
Day Amount Earned
Units Produced Labor Cost per Unit
Hourly Wage Conversion Cost per Unit
[Marks: (2+18) = 20]
Q. No. 4.
(a) Tampa Office Equipment manufactures and sells metal shelving. It began operations on January
1, 2004. Costs incurred for 2004 are as follows (V stands for variable; F stands for fixed):
Taka
Direct material costs 140,000 V
Direct manufacturing labour costs 30,000 V
Plant energy cost 5,000 V
Indirect manufacturing labour costs 10,000 V
Indirect manufacturing labour costs 16,000 F
Other indirect manufacturing costs 8,000 V
Other indirect manufacturing costs 24,000 F
Marketing, distribution and customer service costs 122,850 V
Marketing, distribution and customer service costs 40,000 F
Administrative costs 50,000 F
Page 16 of 51
Q. No. 4. (Contd..)
Variable manufacturing costs are variable with respect to units produced. Variable marketing,
distribution and customer service costs are variable with respect to units sold.
Inventory data are:
Beginning, January 1, 2004 Ending, December 31, 2004

Direct material 0 lb 2,000 Ibs
Work in process 0 unit 0 unit
Finished goods 0 unit ? units
Production in 2004 were 100,000 units. Two pounds of direct materials are used to make one
unit of finished product.
Revenues in 2004 were Tk.436,800. The selling price per unit and the purchase price per pound
of direct materials were stable throughout the year. The company’s ending inventory of finished
goods is carried at the average unit manufacturing costs for 2004. Finished goods inventory at
December 31, 2004, was Tk.20,970.
Required: (i) Calculate direct materials inventory, total cost, December 31, 2004.
(ii) Calculate finished goods inventory, total units, December 31, 2004.
(iii) Calculate selling price per unit for 2004.
(iv) Calculate operating income for 2004.
[Marks: (5 x 4) = 20]
Q. No. 5.
(a) What do you mean by predetermined overhead rates? ‘Selection of right base is important to
have right predetermined overhead rates’ – explain critically.
(b) There are 5 Rs’ in material management. What these 5Rs’ stand for? Discuss shortly.
(c) Write short notes on the following:
(i) Zero Based Budget.;
(ii) Perpetual Inventory;
(iii) Buffer Stock.
[Marks: (5+4+6) = 15]
= THE END =
Page 17 of 51
SUBJECT: 103. MANAGEMENT AND MARKETING MANAGEMENT.
 Answer any THREE questions from each part.
PART – A : MANAGEMENT (TOTAL MARKS-50)
Q. No. 1.
(a) What do you mean by Management? Explain with example.
(b) To be a successful Manager you must play some certain roles. Do you agree? If yes
then explain the roles.
(c) What are the basic skills to be a good Manager? Explain.
[Marks: (4+4+8) = 16]
Q. No. 2.
(a) Define Managerial Ethics. What is the area of social responsibilities of an organization?
Explain.
(b) There are so many arguments for and against social responsibilities. What are they?
Explain.
[Marks: (8+8) = 16]
Q. No. 3.
(a) Clarify the concepts of operational, financial and strategic control.
(b) Discuss the techniques of controlling quality, cost and productivity.
(c) What are the benefits of TQM?
[Marks: (5+6+5) = 16]
Q. No. 4.
(a) Who is a leader and who is a manager? And who is both, a leader and a manager?
(b) Discuss the emerging approaches to leadership.
(c) Explain the nature of political behavior in an organization.
[Marks: (5+6+5) = 16]
Q. No. 5.
(a) What do you mean by strategic planning?
(b) How would you formulate corporate level strategy and business level strategy?
[Marks: (8+8) = 16]
Two marks are reserved for neatness and relevance
Page 18 of 51
SUBJECT: 103. MANAGEMENT AND MARKETING MANAGEMENT.
PART – B : MARKETING MANAGEMENT (TOTAL MARKS-50)
Q. No. 6.
(a) What is Marketing Management?
(b) Define Marketing Mix. What are the 4P’s associated with it?
(c) Differentiate between customer’s profitability and a profitable customer.
[Marks: (4+4+8) = 16]
Q. No. 7.
(a) What are the differences between selling and marketing?
(b) What is Target Market? Do you think that only a target can satisfy a firm to sell its
product or service? Explain.
(c) What do you mean by Customer’s Value and customer’s satisfaction?
[Marks: (4+6+6) = 16]
Q. No. 8.
(a) Why SWOT analysis is necessary?
(b) Discuss the methods of SWOT analysis.
(c) What are the limitations of SWOT analysis?
[Marks: (5+6+5) = 16]
Q. No. 9.
(a) What is meant by marketing strategy?
(b) What factors are considered in developing marketing strategies for a particular concern?
(c) How can you design global marketing strategies for a multinational company?
[Marks: (5+6+5) = 16]
Q. No. 10.
(a) What is product life cycle?
(b) Illustrate with diagram showing the most viable state of the entrepreneurs.
[Marks: (8+8) = 16]
Two marks are reserved for neatness and relevance
= THE END =
Page 19 of 51
SUBJECT: 104.INFORMATION TECHNOLOGY.
Time : 2 hours 30 minutes Full Marks :
80
 Questions are of equal marks.
 Answer any FOUR questions.
 These questions carry 80 marks (Part – A) and balance 20 marks (Part – B) is for practical test
(to be taken later on).
Q. No. 1.
(a) Discuss the Enterprise Resource Planning (ERP) and process of ERP usage in manufacturing
firms. What factors are depend in a successful ERP Implementation?
(b) Measure the ERP for Information Technology and the application of ICT for better decision
making in a e-Governance.
(c) Why SAP is the best ERP Software?
[Marks: (8+8+4) = 20]
Q. No. 2.
(a) What is system Development Life Cycle? What are the roles of a finance manager in perfect
designing of Management Information System (MIS) application of an organization by the IT
persons?
(b) What is feasibility? Name and describe each of the three major areas of feasibility for
information system?
[Marks: (10+10) = 20]
Q. No. 3.
(a) What is a dual-core processor? What advantages does it offer to its user?
(b) Briefly discuss several data-storage issues that face the modern organization.
(c) If cost were not issue, describe the characteristics of your ideal computer. What would you use
it for? Would you choose a handheld, portable, desktop or workstation computer. Why?
[Marks: (6+6+8) = 20]
Q. No. 4.
(a) What is data modeling? What is its purpose? Briefly describe three commonly used data
models.
(b) What is the difference between a data definition language (DDL) and a data manipulation
language (DML)?
(c) What new tools and technologies can make database more accessible and useful?
(d) Explain in brief the differences between the “File Management System” and “Database
Management System”.
[Marks: (4 x 5) = 20]
Q. No. 5.
(a) What is the difference between system analysis and system design?
(b) What is the difference between a logical and a physical view of data?
(c) What is the difference between E-Commerce and E-business?
(d) What is the difference between “Privacy” and “Fair Information Practice”?
[Marks: (4 x 5) = 20]
Q. No. 6.
Write short notes on:
(a) Electronic Financial Accounting;
(b) Data Warehousing;
(c) Digital market;
(d) Computer Waste;
(e) Expert System.
[Marks: (5 x 4) = 20]
= THE END =
Page 20 of 51
PROFESSIONAL LEVEL-II
SUBJECT: 201. ADVANCED FINANCIAL ACCOUNTING-I.
Q. No. 1.
(a) For a large construction work, which will last four years, management proposes to show
profit/loss on work-in-progress every year. Do you advocate this idea? If so, what precautionary
steps would you suggest in providing such profits?
(b) When may profit and losses on construction contracts first be recognized? How does
recognition of a profit on a construction contract differ from the recognition of a loss?
(c) The following particulars relate to two houses which a firm of builders had in course of
construction under contract:
House A House B
Particulars
Tk. Tk.
Work-in-progress on 1st January, 2009 excluding of
Tk.8000 estimated profit which was taken to Profit &
loss account in 2008 140,000 -
Materials purchased 230,000 166,000
Wages 200,000 140,000
Electrical services and fittings 14,000 3,000
Road making charges 80,000 -
Contract prices (including road making) 600,000 400,000
Cash received upto 31st December 2009 600,000 240,000
Percentage of cash received to work certified 100% 66.67%
Value of materials in hand on 31st December 2009 4,000 5,400
Completed work not certified - 25,000
Value of plant used on sites 120,000 60,000
Period of plant remained on sites during the year 10 months 8 months
The total establishment expenses incurred during the year 2009 amounted to Tk.122,400. These
are to be charged to the two contracts in proportion to wages. Depreciation of plant is to be
taken into account at the rate of 10% per annum.
Prepare the contract accounts (in columnar form) showing the profit or loss on each house for
the year 2009 and the sums which you consider appropriately transferable to the profit and loss
account.
[Marks: (5+5+15) = 25]
Q. No. 2.
(a) What are the general criteria for recognizing revenues in the Financial Statements?
(b) The Empire Cosmetics Ltd. invoices goods to their various branches at cost, and the branches
sell on credit as well as for cash. Following are the details relating to the Chittagong branch:
Accounts Receivable, 1 January 2009 262,000
Accounts Receivable, 31 December 2009 331,000
Cash on hand, 1 January, 2009 3,000
Inventory, 1 January, 2009 150,000
Inventory 31 December, 2009 139,000
Goods received from Home Office 508,000
Cash received from Home Office 15,000
Goods returned to Home Office 7,000
Page 21 of 51
Q. No. 2. (Contd..)
Sales:
Cash 335,000
Credit 600,000
Allowances to customers 3,200
Return from customers 5,800
Discount allowed to customers 24,000
Bad debts 6,000
Cash sent to Home Office 749,000
Rent and Rates 18,000
Wages and Salaries 60,000
General Expenses 13,000
Wastages:
Normal loss 12,000
Abnormal loss of goods due to pilferage 30,000
Required: Prepare the following accounts in the Home Office books:
(i) Branch Accounts Receivable Account.
(ii) Branch Cash Account.
(iii) Branch Income Statement.
[Marks: {5+(5+5+10)} = 25]
Q. No. 3.
(a) Explain briefly the proper accounting treatment for recognizing currently a change in
accounting principle.
(b) The following details were available regarding the affairs of Emacol Ltd. as at 31 December
2009 when the company was contemplating filing a petition for liquidation or reorganization:
Heads Taka
Accounts payable 97,500
Mortgage Notes payable 100,000
Bank Notes payable 16,000
Cash in hand 2,000
Cash at Bank 2,100
Notes Receivable 12,000
Accounts Receivable (estimated collectible value: Tk.14,000) 23,500
Wages and Salaries due to 3 employees 6,750
Interest payable – Bank Notes 550
Interest payable – Mortgage Notes 4,250
Inventories – Finished Goods 28,000
Inventories – Work in Progress 12,000
Inventories – Raw Materials 19,500
Prepaid Insurance (estimated recovery value: Tk.300 600
Investment in Stock 13,250
Capital Stock 125,000
Retained Earnings (deficit) (70,600)
Land (appraised value: Tk.20,000) 21,000
Buildings – Net (appraised at Tk.50,000) 99,000
Plant and Machinery–Net (estimated disposal value: Tk.19,000) 46,500
Page 22 of 51
Q. No. 3. (Contd..)
Additional Information:
(a) The Notes Receivable are expected to be fully realized, and they have been pledged as
collateral on a Bank Note in the principal amount of Tk.10,000 plus interest payable of
Taka 300.
(b) Finished goods inventory can be sold at a mark-up of 20% over cost, with estimated
selling expenses of 10% of selling price.
(c) Inventories – WIP require Taka 6,000 to complete, of which Taka 2,500 represents the
cost of raw materials. Estimated selling price of the completed WIP inventories is Taka
12,500.
(d) Estimated selling price of the raw materials is Taka 11,900.
(e) Investment in stock is pledged as collateral on a Bank Note Payable in the principal
amount of Taka 6,000 plus interest payable of Taka 250.
(f) Land and Buildings serve as collateral on the Mortgage Note Payable.
Required: Prepare a Statement of Affairs for Emacol Ltd. along with a deficiency account.
[Marks: (5+20) = 25]
Q. No. 4.
(a) How does rebate on bills discounted arise and how is it brought into record? Explain this with a
suitable example.
(b) From the following Trial Balance as on 31.12.09 and other details of a Private Bank Ltd. draw
the Balance Sheet as at that date and a Profit and Loss Account for the year ended on that date:
Debits: Tk. Credits : Tk.
Share Capital 10,00,00,000
Bills Purchased: Reserves 7,00,00,000
Payable in Bangladesh 2,00,00,000 Fixed Deposits 20,00,00,000
Payable outside the Bangladesh 1,00,000 Saving Deposit 15,00,00,000
Debts due by Directors or Officers: Provident Fund 1,00,00,000
Either severally or jointly with other
person fully secured 1,50,00,000
Debts considered good for which The Current Deposits 27,00,00,000
bank holds no other security than the
debtor’s personal security 1,00,00,000
Cash with other banks in C/A 10,47,40,000 Contingent Accounts 3,00,00,000
Debts considered good secured by Bills Payable (Drafts) 40,00,000
personal liability of parties in addition
to that of debtors 2,00,00,000
Doubtful Debt. (provision to be made) 2,00,000 Bills Receivable for collection:
Building at cost 2,00,00,000 Payable in Bangladesh 3,00,00,000
Debts due by companies in which the Payable outside Bangladesh 10,00,000
Directors are interested fully secured 42,60,000
Furniture and fixtures at cost 40,00,000 Depreciation Fund on Buildings 60,00,000
Land and building acquired in Depreciation Fund on Furniture 10,00,000
satisfaction of claims at cost 5,00,000 etc.
Bills receivable for collection: Payable Profit and Loss A/C 60,00,000
in Bangladesh 3,00,00,000
Payable outside Bangladesh 10,00,000 Interest 1,80,00,000
Loans considered good, fully secured Discount 47,00,000
41,64,00,000
Bills Discounted: Payable in Commission 40,00,000
Bangladesh 3,00,00,000
Payable outside Bangladesh 4,00,000 Exchange 2,00,000
Page 23 of 51
Q. No. 4. (Contd..)
Cash with Bangladesh bank 3,00,00,000 Brokerage 9,00,000
Loans to banks: Fully secured 1,60,00,000 Rent 5,00,000
Cash in hand 7,00,00,000 Share Transfer Fees 10,000
Government of BD. Bonds(face value Sundry receipts 90,000
Tk. 85,000,000) 7,95,00,000
States loan bonds (F.V. Tk. 95,00,000
10000000)
Ordinary Shares:
Fully paid up 20,00,000
Partly paid up 10,00,000 30,00,000
(Uncalled amount Tk. 500,000)
Money at call & short Notice 50,00,000
Interest accrued on Investments 10,00,000
Interest paid on deposits 60,00,000
Traveling Allowance 1,00,000
Chairman’s remuneration 4,50,000
Salaries and Allowances 60,00,000
Stationary and Printing 5,00,000
Director’s Fees and allowances 2,00,000
Advertisements etc. 3,00,000
Provident Fund Contributions (other 2,50,000
than Chairman)
Depreciation 3,00,000
Rent and Taxes 6,00,000
Audit Fees 4,00,000
Insurance 1,00,000
Electric Charges 2,00,000
Law Charges 1,00,000
Postage, Telegrams & Telephone 3,00,000
----------------- -----------------
Total Debit 90,64,00,000 Total Credit 90,64,00,000
The following information is available:
(a) Maximum amount of loan to Directors and Officer and to companies etc. in which Directors are
interested are Tk. 200 lakh and Tk. 60 lakh respectively.
(b) The Bank declares 6% dividend for the year ending 31st December, 2008 on called up capital of
20000000 shares at Tk. 500 (Face Value Tk. 1000). All the authorised capital was issued and
subscribed.
(c) In addition to dividend Tk. 20 lakh and Tk. 10 lakh were appropriated towards reserve for
contingencies and Bonus respectively. Balance in Profit and Loss account of 1.1.09 was Tk.
15000000.
(d) In 2009 Buildings and Furniture costing Tk. 2000000 and Tk. 500000 respectively were acquired.
Furniture (cost Tk. 100000) was sold for the same amount.
(e) Tk. 2000000 is to be provided for taxation from current year income.
(f) On 31.12.09 Tk. 500000 Bills Discounted (accompanied by documents of title) are on behalf of
Directors.
(g) Acceptances on behalf of clients on that day amount to Tk. 5000000.
(h) Tk. 9500000 Government of Bangladesh Bonds (F.V. Tk. 10000000) represent Provident Fund
Investment.
[Marks: (5+20) = 25]
= THE END =
Page 24 of 51
SUBJECT: 202. MANAGEMENT ACCOUNTING.
Q. No. 1.
(a) What is Total Quality Management (TQM)? At what point can a firm consider that TQM is
achieved?
(b) What roles do management accountants play in TQM?
(c) Which of the following cost categories tend to increase during the early years of TQM? Which
of these tend to decrease over the years due to successful TQM? Explain why?
(i) Prevention;
(ii) Appraisal;
(iii) Internal failure;
(iv) External failure.
[Marks: (5+3+12) = 20]
Q. No. 2.
(a) What is activity-based costing and how can it improve the costing system of an organization?
(b) Describe activity-based management.
(c) Chemical Company uses a traditional two-stage cost allocation system. In the first stage, all
factory overhead costs are assigned to two production departments, A and B, based on machine-
hours. In the second stage direct labour-hour are used to allocate overhead to individual
products, Premium and Regular.
During 2009 the company has a total factory overhead cost of Tk.1,000,000. Machine-hours in
production departments A and B were 4,000 and 16,000 hours, respectively.
The following information relates to products Premium and Regular for the month of January,
2009:
Premium Regular
Units produced and sold 200 800
Unit cost of direct materials Tk.100 Tk.50
Hourly direct labour wage rate Tk.25 Tk.50
Direct labour-hours in department A per unit 2 2
Direct labour-hours in department B per unit 1 1
Chemical Company is considering implementing an activity-based costing system, its

management accountant has collected following information for activity costs analysis:
Activity Driver OH rate Direct Consumption

Premium Regular
Material No. of production 20 150 300
Movement Runs
Machine setups No. of setups 800 25 50
Inspections No. of units 30 200 800
Shipment No. of shipment 20 50 100
Page 25 of 51
Q. No. 2. (Contd..)
Required:
(1) Calculate the unit costs for each of the two products under the existing traditional costing
system.
(2) Calculate the unit costs for each of the two products if the proposed ABC system is adopted.
[Marks: {5+3+(6+6)} = 20]
Q. No. 3.
The Diamond Cutting company requires 10 machine hours per unit in the Cutting Department. The
following costs are assumed to be related to the operations of a cutting machine at a normal capacity
of 10,000 units per year (with a maximum capacity of 12,000 units per year):
Variable costs:
Electricity (10,000 units x 10 MH*/UNIT x Tk.5/MH) Tk.500,000
Repairs & maintenance (10,000 UNITS x 10 MH/unit x Tk.2/MH) 200,000
Fixed costs:
Depreciation (Tk.2,000,000/5 years) 400,000
Insurance 100,000
Total costs at 10,000 units Tk.1,200,000
* MH = machine hours.
Required:
(a) What are the variable, fixed, and total costs per unit if the normal production of 10,000 units per
year is achieved?
(b) What are the variable, fixed, and total cost per unit if only 8,000 units are produced per year?
(c) What is the implication of producing less units (8,000 units) than normal capacity (10,000 units)
for managerial decision making?
(d) Which costs are relevant and which costs are irrelevant to a decision to expand production from
normal capacity (10,000 units) to maximum capacity (12,000 units)?
(e) Suppose a second cutting machine, identical in every respect to the first one, is under
consideration for possible purchase. Total production for the year is still expected to be equal to
normal capacity (10,000 units with the first cutting machine accounting for 6,000 units and the
second cutting machine accounting for 4,000 units.
(i) What are the total costs of operating each of the two machines?
(ii) What are the variable, fixed, and total costs per unit for each machine?
(iii) What costs are relevant and what costs are irrelevant to the decision to acquire a second
cutting machine?
(f) Under what condition would both the variable costs and fixed costs be relevant in a decision to
acquire a second cutting machine?
[Marks: (2+3+3+3+6+3) = 20]
Q. No. 4.
(a) Identify the benefits that can result from reducing the setup time for a product.
(b) What is the margin of safety and why is it a useful concept for management?
(c) Define the term sales mix, and give an example to support your definition.
(d) Determine the level of sales a Company must attain to cover its fixed and variable costs, where
the selling price is Tk.5, total fixed costs are Tk.160,000, and the contribution margin ratio is
40%.
Required:
Determine the Company’s break-even point in units and taka using the algebraic approaches.
[Marks: (4+4+4+8) = 20]
Page 26 of 51
Q. No. 5.
(a) How does zero-based budgeting differ from traditional budgeting?

(b) Asad Box Fabrications manufactures boxes for workstations. The firm’s standard cost sheet and
the operating result of October 2009 are:
Standard cost Operating Result

per unit October 2009
Units 9,500
Sales Tk.50.00 Tk.551,000
Variable costs:
Direct materials
5 pounds @ Tk.2.40 Tk.12.00 48,000 pounds x Tk.3 = Tk.144,000
Direct labour
0.5 hours @ Tk.14 per hour Tk. 7.00 4,800 hours x Tk.16 = Tk. 76,800
Variable manufacturing overhead Tk. 2.00 Tk. 19,000
Variable selling and Administrative expenses Tk. 5.00 Tk. 55,100
Total variable cost Tk.26.00 Tk.294,900
Contribution margin Tk.24.00 Tk.256,100
Fixed costs:
Manufacturing costs Tk.50,000 Tk.55,000
Selling and administrative expenses 20,000 24,000
Total fixed costs Tk.70,000 Tk.79,000
Operating income Tk.177,100
In preparing the master budget for October 2009 the firm had several expected changes from the
standard cost sheet. The sales price would increase by 8 percent. Its suppliers notified the firm that
materials prices would increase by 5 percent starting October 1. The labor contract that started on
October 1 increased wages and benefits by 10 percent. Fixed manufacturing costs would increase
Tk.5,000 for insurance, property taxes, and salaries. For fixed selling and administrative expenses
there would be a Tk.2,000 increase in managers’ salaries. Furthermore, the firm plans to spend an
additional Tk.2,000 for advertising during October 2009. The unit sales for October 2009 was
expected to be 10,000 units. Asad Box Fabrications uses JIT systems in all of its operations including
materials acquisitions and product manufacturing.
Required:
(1) Prepare the master budget and flexible budgets at 9,500 units and at 11,000 units for October
2009.
(2) Compute the sales volume operating income variances, flexible budget operating income
variance, sales price variances, and flexible budget variable cost variance for October 2009.
(3) Determine the direct materials prices variance, direct materials usage variance, direct labor rate
variance, and direct labor efficiency variance.
[Marks: 4+ (7+4+5) = 20]
= THE END =
Page 27 of 51
SUBJECT: 203.COMMERCIAL & INDUSTRIAL LAWS.
 Answer FIVE questions taking at least TWO from each group “A” and “B”.
GROUP – A : COMMERCIAL LAW

Q. No. 1.
Describe the basic elements of a valid contract.
[Marks: 20]
Q. No. 2.
(a) What is meant by free consent?
(b) What situations may vitiate the legality of a contract as not being free?
[Marks: (3+17) = 20]
Q. No. 3.
(a) What do you understand for ‘performance of contract’?
(b) What is the effect of refusal to accept performance by the promisee?
(c) Discuss the different types of methods of Arbitration.
[Marks: (6+7+7) = 20]
Q. No. 4.
Under what circumstances a suit may be brought against the issuer of a cheque when the cheque has
been dishonoured by a bank for insufficiency of fund in the respective account.
[Marks: 20]
Q. No. 5.
Write short notes on any four of the following.
(a) Doctrine of caveat emptor; (b) bailment & pledge; (c) Condition and warranty
(d) Proximate Causa; (e) Charter Party.
[Marks: (4 x 5) = 20]
GROUP – B : INDUSTRIAL LAW

Q. No. 6.
Describe different kinds of leave entitled to a worker in the Labour Act, 2006.
[Marks: 20]
Q. No. 7.
State the provisions of law with regard to health and child protection as enshrined in the Labour Code,
2006.
[Marks: 20]
Q. No. 8.
(a) Define Trade Union, discuss it objectives.
(b) Describe the requisites for registration of a ‘trade union’ of workers.
(c) What constitutes ‘unfair labour practices’ by an employer?
[Marks: (6+7+7) = 20]
Q. No. 9.
State the procedure for ‘settlement of an industrial dispute’.
[Marks: 20]
Q. No. 10.
Describe any two of the following provisions as laid in the Labour Code, 2006 with regard to –
(a) dismiss; (b) discharge; (c) termination; and (d) retrenchment; (e) Labour appellate tribunal.
[Marks: (10+10) = 20]
= THE END =
Page 28 of 51
SUBJECT: 204. TAXATION.
Q. No. 1.
(a) Mr. Kaiser, Managing Director of a multi national company gets the following remuneration,
benefits and allowances during the year ended on 30.06.2009:
(i) Salary at the rate of Tk.25,000/- per mensem,
(ii) Rent free accommodation (unfurnished), company pays the rent @ Tk.30,000/- per
mensem;
(iii) T.A. & D.A. Tk.1,50,000, residence utility bills Tk.75,000, hospital bills Tk.45,000, club
bills Tk.60,000 are all reimbursed by the company;
(iv) Performance bonus equivalent to 3 months salary and festival bonus equivalent to 2
months salary are paid;
(v) Mr. Kaiser contributes 10% of the basic salary to CPF (recognized) and the company also
contributes the same amount.
Compute total income of M. Kaiser from the above information.
(b) What will happen to the above mentioned company if it pays salary to Mr. Kaiser in cash?
(c) What types of errors are generally fall within the purview of rectification u/s 173? Who can
claim and what is the time limit for claiming rectification u/s 173?
[Marks: (10+2+3) = 15]
Q. No. 2.
Write short notes on the following in relation to Income Tax Ordinance, 1984:
(a) Tax Audit;
(b) Speculative Business;
(c) E-Filing;
(d) Initial Depreciation; and
(e) Rule making power.
[Marks: 5×2=10]
Q. No. 3.
Differentiate between the following:-
(a) Normal assessment and Universal self assessment.
(b) Question of law and question of fact.
(c) Income year and assessment year.
(d) Revisional power of CT and Revisional power of IJCT.
(e) T.I.N. and B.I.N.
[Marks: 5×2=10]
Q. No. 4.
ABC Co. Ltd. is an exporter of jute products manufactured in its mills. Income under the head was
disclosed at Tk.30 million for the assessment year 2009-2010. The DCT at the time of hearing
detected the following facts:
Page 29 of 51
Q. No. 4. (Contd..)
(i) Salary of repatriate consultant engineer, supervised the installation of the jute mills, Tk.5,40,000
was debited in the profit & loss account.
(ii) Depreciation was claimed at Tk.15,00,000 including depreciation on a leasehold machinery of
Tk.12,00,000. Depreciation on it was claimed at Tk.2,40,000. The lease rental for the year was
Tk.1,50,000.
(iii) A BMW jeep was purchased at a cost of Tk.55 lacs. Depreciation on it was charged @20% on
the cost of the vehicle. The amount of depreciation was not shown in the depreciation stated
above.
(iv) A machinery costing Tk.2,00,000 was sold during the year at Tk.3,50,000 which was not
reported in the accounts. Depreciation of Tk.7,500 up to the date of sale on 31.12.08 was
claimed in the accounts. WDV on the date of sale was Tk.92,500.
(v) Interest on loan was claimed at Tk.45,00,000 on a total loan of Tk.3.5 crores. It is ascertained
that an amount of Tk.50,00,000 has been paid as loan to XYZ Ltd. at the time of purchasing a
textile mills on 01.01.09 and Tk.30,00,000 has been paid to one of the Directors to purchase a
flat for him.
(vi) Sundry creditors were shown at Tk.35,00,000. Out of this an amount of Tk.3,00,000 originated
in 2004-05, Tk.3,50,000 in 2005-06, Tk.1,50,000 in 2006-07 and the rest in the current year.
(vii) The company paid advance tax in all Tk.70,50,000. The last assessed income was Tk.25
million.
Compute total income and tax payable by the company.
[Marks: 15]
Q. No. 5.
Mr. A, Mr. B and Mr. C are three partners of ABC& Associates who share profit and loss in 2:2:1
ratio. The profit and loss account for the year ended on June 30, 2009 is given below :
ABC & Associates
Profit and Loss Account
For the year ended on June 30, 2009.
Particulars Amount (Tk.) Particulars Amount (Tk.)

Rental expenses 25,000 Gross Profit 5,00,000
Utilities 20,000
Commissions 40,000
Advertisements 15,000
Miscellaneous Expenses 28,000
Interest on Capital :
A - 7,000
B - 7,000
C - 6,000 20,000
Salaries :
A – 24,000
C – 22,000 46,000
Net Profit 3,06,000
5,00,000 5,00,000
Other Information:
(i) Rent includes Tk.15,000 paid to Mr. C who partially owns the business premises.
(ii) Tk. 12,000 of commission is given to Mr. B for his special assignment.
(iii) Miscellaneous expense includes a donation of Tk. 8,000.
(iv) Partners have income from different sources as follows:
Page 30 of 51
Q. No. 5. (Contd..)
Sources Mr. A Mr. B Mr. C

(Tk.) (Tk.) (Tk.)
Income from House Property 50,000  60,000
Income from Interest on Securities 40,000 70,000 80,000
Agricultural Income  50,000 
Income from other sources (Dividend) 28,000  15,000
Required:
(a) Compute the total income of the firm;
(b) Compute the amount of tax liability of the firm;
(c) Show the distribution of profit to the partners;
(d) Compute total income of the partners;
(e) Compute the amount of net tax liability of the partners.
[Marks: (5x3) = 15]
Q No. 6.
(a) Distinguish between ‘Rebate’ ‘Drawback’ and ‘Refund’ as per VAT Act , 1991.
(b) Mention five Points where Input Tax Rebate is not entitled (as per related section of VAT Act,
1991).
(c) Assume you are a Manager, VAT affairs, of a Manufacturing Company. Which books of
Accounts you must maintain to comply law? How long will you preserve the books and
records?
(d) Define ‘Export’ and ‘Deemed Export’ as per changes made by Finance Act, 2009 for VAT Act,
1991.
(e) Distinguish between Appellate Commissioner of Customs and VAT and Appellate Tribunal of
Customs and VAT.
[Marks: (5x4=20)]
Q No. 7.
(a) XYZ Ltd imports A4 size paper from Singapore. Invoice Value is $3000(C&F), Exchange rate
is 1$=70TK, Customs Duty is 25%, Supplementary Duty is 35%, AIT is 3%, (Consider 1%
Handling charge and 1% Insurance fees). Calculate Customs Duty, VAT, Supplementary Duty
and Total Tax Liability of XYZ Ltd at the import stage.
(b) What are the salient features of valid gift? Who can make a valid gift?
(c) Why is Baggage rule necessary? Mention at least five consumable items which are tax free
under baggage rules at the Airport.
[Marks: (3x5) = 15]
= THE END =
Page 31 of 51
PROFESSIONAL LEVEL-III
SUBJECT: 301. ADVANCED FINANCIAL ACCOUNTING-II.

Q. No. 1.
(a) Define business combination as per IFRS-3. Discuss its various types.
(b) On January 1, 2010, Point Co. Ltd. issued 12,000 shares of its Tk. 10 par value stock to acquire
the net assets of Light Company. Underlying book value and fair value information for balance
sheet items of Light Company at the time of acquisition is as follow:
Balance Sheet Item Book Value Tk. Fair Value Tk.
Cash 60,000 60,000
Accounts Receivable 1,00,000 1,00,000
Inventory (FIFO basis) 60,000 1,15,000
Land 50,000 70,000
Buildings and Equipment 4,00,000 3,50,000
Less: Accumulated Depreciation (1,50,000) -
Total Assets 5,20,000 6,95,000
Accounts payable 10,000 10,000
Bonds payable 2,00,000 1,80,000
Common stock (Tk. 5 par value) 1,50,000
Additional paid-in capital 70,000
Retained Earnings 90,000
Total Liabilities and Equities 5,20,000
Light Company’s shares were selling at Tk. 18 and Point’s company’s shares were selling at Tk. 50
just before the merger announcement. Additional cash payments made by Point Co. in completing the
acquisition were:
Tk.
Finder’s fee paid to Firm that located Light Co. 10,000
Audit fee stock issued by Point Co. 3,000
Stock registration fee for new shares 5,000
Legal fees paid for transfer of assets 9,000
Cost of SEC registration of point shares 1,000
Required:
(a) Prepare all Journal Entries in Point Company’s books using Acquisition Method.
(b) Present all entries in Light Company’s books for combination and the distribution of stock
received.
[Marks: (5+9+6) = 20]
Q. No. 2.
(a) Describe in brief IAS-21 guideline in translation to presentation currency.
(b) A & Co. Inc. of the U.S.A. purchased 80% of the outstanding stocks of WR & Co., located in
Australia on January 1, 2003. The purchase price in Australian dollar (A$) was A$ 40,000; and
A$ 8,000 of the differential was allocated to plant and equipment, which is amortized over a 10
year period. The remainder of the differential was attributable to goodwill. WR & Co.’s trial
balance on December 31, 2003 in Australian dollars is as follows:
Debits Credits
Cash A$8,820 Accumulated depreciation 12,000
Accounts receivable 14,400 Accounts payable 10,760
Inventories 17,200 Payable to A & Co. Inc. 2,160
Page 32 of 51
Q. No. 2(contd.....)
Plant & Equipment 48,000 Interest payable 600
Cost of goods sold 66,000 12% Bonds payable 20,000
Depreciation expense 4,800 Premium on bonds 1,140
Operating expense 26,300 Common stock 18,000
Interest expense 1,140 Retained earnings 8,000
Dividend declared 1,800 Sales 115,800
A$188,460 A$188,460
The following are the additional information:
(i) WR & Co. uses average cost for cost of goods sold. Inventories increased by A$ 4,000 during
the year. Purchases were made uniformly during 2003. The ending inventories were acquired at
the average exchange rate for the year.
(ii) Plant and equipment were acquired as follows:
January 1, 2001 A$36,000
January 1, 2003 12,000
(iii) Plant and equipment are depreciated using the straight line method, a 10 year life and no
residual value.
(iv) The payable to A & Co. Inc., is in Australian dollars. A & Co.’s books show a receivable from
WR & Co. of US$ 1,296.
(v) The 10 year bonds were issued on July 1, 2003 for A$ 21,300. The premium is amortized on a
straight-line basis. The interest is paid on April 1 and October 1.
(vi) The dividends were declared and paid on April 1.
(vii) Exchange rates were as follows:
January, 2001 A$1 = US$ 93
August, 2001 A$1 = US$ 88
January 1, 2003 A$1 = US$ 70
April 1, 2003 A$1 = US$ 67
July 1, 2003 A$1 = US$ 64
December 31, 2003 A$1 = US$ 60
2003 average A$1 = US$ 65
(viii) A & Co. Inc. appointed an appraiser on December 31, 2003 to test the value of goodwill who
reported that the goodwill on combination has impaired by 1/10th of its original value.
Required:
(i) Prepare a schedule translating the December 31, 2003 trial balance of WR & Co. from
Australian dollars to US dollars.
(ii) Prepare a statement of the subsidiary in US dollar taking into consideration amortization
expenses and impairment losses on percents differential over book value (ignore Income Taxes)
(iii) Prepare a schedule showing non-controlling interests in subsidiary.
[Marks: (5+15) = 20]
Q. No. 3.
(a) Distinguished between an up-stream sale of inventory and a down-stream sale. Why it is
important to know whether a sale is up-stream or down-stream?
(b) The December 31, 2006 balance sheet for DC & Co. and its 70% owned subsidiary, HC & Co.
contained the following summarized position:
DC & Co. HC & Co.
Cash and receivable Tk. 19,600 Tk.8,000
Inventories 30,000 20,000
Building & Equipment (net) 62,000 56,000
Investment in HC & Co. stock 56,000
Total assets Tk.167,600 84,000
Page 33 of 51
Q. No. 3(contd.....)
Accounts payable 14,000 4,000
Common stock 40,000 30,000
Retained earnings 113,600 50,000
Total liabilities & equity Tk.167,600 Tk.84,000
DC & Co. Purchased the shares of HC & Co, at book value on January 1, 2005. On December 31,
2006. DC & Co.’s balance sheet contains inventories items purchased from HC & Co. for Tk.19,000.
The item cost of HC & Co. Tk.11,000 to produce. In addition HC & Co.’s inventories contain goods it
purchased from DC & Co. for Tk.5,000 that DC & Co. had produced for Tk.3,000.
Required:
(i) Prepare all eliminating entries needed to complete a consolidated balance sheet work paper as
of December 31, 2006.
(ii) Prepare a consolidated balance sheet work paper as of December 31, 2006.
[Marks: (5+5+10) = 20]
Q. No. 4.
(a) Define Dilutive and Antidilutive securities. How they affect the computation of EPS?
(b) At December 31, 2009 the financial statements of Pubali Co. Ltd. included the following:
Net income for 2009 Tk.5,30,000
Common stock, Tk. 10 par:
Shares outstanding on 01.01.2009 1,50,000 shares
Shares retired for cash on 01.02.2009 24,000 shares
Shares sold for cash on 01.09.2009 18,000 shares
2 for 1 stock split on July 23
preferred stock, 10% Tk. 10 par, Cumulative, nonconvertible Tk. 70,000
Preferred stock, 8%, Tk. 1 par, Cumulative, Convertible into
4,000 shares of common stock Tk. 1,00,000
Common stock warrants outstanding for 4,000 shares of common stock, the exercise price is Tk. 15.
Additional data:
The market price of the common stock averaged Tk. 20 during 2009.
The convertible preferred stock had been issued at par in 2007.
The tax rate for the year was 40%.
Required:
(i) Basic; and (ii) Diluted earnings per share for the year ended December 31, 2009.
[Marks: (5+6+9) = 20]
Q. No. 5.
(a) Give four different transactions originating with the branch that affect the reciprocal accounts.
(b) The Sunrise Company opened its Riverside Branch on January 1, 2009. The home office will
ship merchandise to the branch at 40% mark-up on cost. Both home office and branch uses
perpetual inventory system. The following transactions took place during the year:
(i) The Sunrise Company transferred Tk. 50,000 by cheque to the branch.
(ii) The home office shipped merchandise costing Tk. 40,000 to the branch.
(iii) The branch received an equipment costing Tk. 42,000, purchased by the home office. The home
office maintains all fixed assets accounts.
(iv) The branch purchased additional merchandise costing Tk. 35,000 on account.
(v) The branch returned damaged merchandise with a billed price of Tk. 3,500 to the home office.
(vi) The branch sold 2/3rd of the inventory received from home office:
In cash Tk. 20,000
On account Tk. 40,000
(vii) Branch collection on credit sales Tk. 40,000
Page 34 of 51
Q. No. 5. (contd.....)
(viii) Branch cash expenses for the year are as under:

Advertising Tk. 2,000
Salaries Tk. 5,000
Utilities Tk. 1,000
Maintenance Tk. 500
Miscellaneous Tk. 100
(ix) Depreciation expense for the year recorded by home office on assets used by the branch totaled
Tk. 1,500.
(x) Cash remitted to home office Tk. 40,000.
Required:
(i) Record the transactions on the books of both home office and branch in Journal.
(ii) Prepare necessary closing entries on the branch books
(iii) Prepare the adjusting and closing entries on the home office books.
[Marks: (2+10+4+4) = 20]
= THE END =
Page 35 of 51
PROFESSIONAL LEVEL - III
SUBJECT: 302. ADVANCED COST ACCOUNTING.
Q.No.1.
(a) What is equivalent production? Explain in terms of its effect on computed unit costs.
(b) How are equivalent production figures computed when FIFO costing is used?
(c) Prime Company manufactures tranquilizers. Production is divided into three processes: Mixing,
Compounding, and Packaging. Average costing is used in the first two departments, and FIFO
costing is used in the Packaging Department.
The following data are available for September:
Quantity schedule:
Mixing Compounding Packaging
Units in process at beginning 4,000 2,000 2,000
Units started in process 60,000
Units received from preceding Department - 50,000 46,000
64,000 52,000 48,000
Units transferred to next dep. 50,000 46,000
Units transferred to finished goods - - 41,600
Units lost during process 2,000 * - 4,000 **
Units Still in process 12,000 6,000 2,400
64,000 52,000 48,000
* Loss are with in normal tolerance limits.
** Loss is assumed to be entirely from units transferred in this period.
Mixing Compounding Packaging
Stage of completion of units in Process at
the beginning of period:
Materials 1/1 - ½
Labor and factory overhead 5/6 2/3 ½
Stage of completion of units in Process at
end of period:
Materials 1/1 - 1/6
Labor and factory overhead ½ 2/3 1/6
Cost data:
Work in process- Beginning inventory:
Cost form preceding dep. - Tk.2,260 Tk.3,000
Materials Tk.1,960 - Tk.60
Labor Tk.770 Tk.350 Tk.130
Factory overhead Tk.1,060 Tk.200 Tk.100
Cost added during period:
Materials Tk.29,040 - Tk.1,230
Labor Tk.10,430 Tk.13,400 Tk.2,870
Factory Overhead Tk.15,740 Tk.8,550 Tk.2,460
Required:
(a) Compute the equivalent units of production for each department.
(b) Prepare a combined cost of production report for September. (Carry unit cost computations to
five decimal places).
[Marks: 4+4+(6+6)= 20]
Page 36 of 51
Q. No. 2.
(a) Why is market value method for joint cost allocation so often used by the industry?
(b) Seven brother corporation produces three products Alpha, Beta and Gamma. Alpha and Gamma
are joint products , while Beta is a by product of Alpha. No joint cost is to be allocated to the by
product. The production for a given year are as follows:
(i) In Department 1, 1,10,000 pounds of material, Rho, are processed at a total cost of Tk.
1,20,000. After processing 60% of the units are transferred to Department 2 and 40% of
the units (now Gamma) are transferred to Department 3.
(ii) In Department 2, the material is further processed at a total additional cost of Tk. 38,000.
Seventy percent of the units (now Alpha) are transferred to Department 4 and 30%
emerge as Beta, the by product , to be sold at Tk. 1.20 per pound . The marketing expense
related to Beta is Tk. 8,100.
(iii) In Department 4, Alpha is further processed at a total additional cost of Tk. 23,660. After
processing, Alpha is ready for sale at Tk.5 per pound.
(iv) In Department 3, Gamma is processed at a total additional cost of Tk. 1,65,000. In this
department, a normal loss of units of Gamma occurs, which equals 10% of the good
output of Gamma. The remaining good output is sold for Tk.12 per pound.
Required:
(1) Prepare a schedule showing the allocation of the Tk. 1,20,000 join cost between Alpha and
Gamma, using the market value at split of point and treating the net realizable value of Beta as
an addition to the sales value of Alpha.
(2) Prepare a statement of gross profit for Alpha, independent of the answer to requirement,
assuming that:
(a) Tk.1,02,000 of total joint cost was appropriately allocated to Alpha.
(b) 48,000 pounds of Alpha and 20,000 pounds of Beta were available for sale.
(c) During the year , sales of Alpha were 80% of the pounds available for sale. There was no
beginning inventory.
(d) The net realizable value of Beta available for sale is to be deducted from the cost of
producing Alpha. The ending inventory of Alpha is to be based on the net cost of
production.
(e) All other cots, sales price, and marketing expenses are those presented in facts of the
original problem.
[Marks: 5+8+7 =15]
Q. No. 3.
(a) What is the classification of cost in transport company?
(b) What are the primary goals of JIT philosophy, and how does JIT attempt to achieve these goals?
(c) A person owns a bus which runs between Chittagong and Dhaka for 15 days in a month. The
distance from Chittagong and Dhaka is 300 kilometers. The bus completes the trip from
Chittagong to Dhaka and back the same day. The bus goes another 10 days in a month towards
Cox’s Bazar. The distance from Chittagong to Cox’s Bazar is 150 kilometers. The trip to Cox’s
Bazar and back is also completed the same day. Calculate the fare that each passenger should
pay if the owner wants to earn a profit of 25% on takings.
The other particulars are given below:
Cost of the bus Tk.15,00,000 ; Depreciation 20% per annum ; Interest on capital 10% per
annum ; Salary of the driver Tk.3,500 per month ; Salary of the contractor Tk.1,500 per month.
Office expenses Tk.3,000 per month ; Salary of the part-time accountant Tk.2,500 per month ;
Insurance Tk.16,000 per annum.
Diesel consumption: 8 kilometers per liter costing Tk. 10 per liter.
Lubricant : Tk. 70 per 100 kilometers. Taxes and fees : Tk. 6,000 per annum; Repairs and
maintenance Tk. 7,500 per month. Registration and road license : Tk. 5,000 per annum.
Normal capacity of the bus : 54 persons. The bus is generally occupied 90% of capacity.
[Marks: (5+5+10) =20]
Page 37 of 51
Q.No.4.
(a) Why are managers often unaware of the magnitude of quality costs?
(b) Cost associated with the quality of conformance can be broken down into four broad groups.
What are these four groups and how do they differ?
(c) In response to intensive foreign competition, the management of Falcon Incorporation has
attempted over the past year to improve the quality of its product. A statistical process control
system has been installed and other steps have been taken to decrease the amount of warranty
and other field costs, which have been trending upward over the past several years. Cost relating
to quality and quality control over the last two years are given below:
This year (Tk.) Last year (Tk.)
Inspection 900,000 750,000
Quality engineering 570,000 420,000
Depreciation of test equipment 240,000 210,000
Rework Labor 1,500,000 1,050,000
Statistical process control 180,000 -
Cost of field servicing 900,000 1,200,000
Supplies used in testing 60,000 30,000
System development 750,000 480,000
Warranty repairs 1,050,000 3,600,000
Net cost of scrap 1,125,000 630,000
Producing testing 1,200,000 810,000
Product recalls 750,000 2,100,000
Disposed of defective products 975,000 720,000
Sales have been flat over the past few years, at Tk.75,000,000 per year. A great deal of money has
been spent in the effort to upgrade quality, and management is anxious to see whether or not the effort
has been effective.
Required:
(i) Prepare quality cost report that contains data for both this year and last year. Carry percentage
computations to two decimal places.
(ii) Prepare a written evaluation to accompany the reports you have been prepared in (i) above. This
evaluation should discuss the distribution of quality costs in the company, changes in the
distribution that you see taking place, the reasons for changes in costs in the various categories,
and any other information that would be of value to management.
[Marks: 3+3+(6+8)= 20]
Q. No. 5.
(a) Discuss the meaning of variance control and responsibility by various levels of management.
(b) What is target costing? How do target costs enter into the pricing decision?
(c) Falcon International Company manufactures Product G, which sells for Tk.25 per unit. Material
M is added before processing starts, and labor and overhead are added evenly during the
manufacturing process. Production capacity is budgeted at 110000 units of G annually. The
standard costs per unit of G are:
Direct materials:
M : 2 pounds @ Tk.1.50 per hour Tk.3.00
Direct labor: 1.5 hours at Tk.8 per hour Tk.12.00
Factory overhead:
Variable Tk.1.50
Fixed Tk.1.10
Tk.2.60
Total standard cost per unit Tk.17.60
Page 38 of 51
Q.No.5. (contd……)
A process cost system is used. Inventories are valued at standard cost. All variances form standard
costs are charged or credited to Cost of Goods Sold in the year incurred.
Inventory data for the year 2009:
January 1 December31
Material M 50000 pounds 60000 pounds
Work in process:
All materials, 2/5 processed 10000 units -
All materials, 1/3 processed - 15000 units
Inventory, finished goods 20000 units 12000 units
During 2009, 250000 pounds of M were purchased at an average cost of Tk.1.485 per pound; and
240000 pounds were transferred to work in process inventory. Direct labor costs amounted to
Tk.13,13,760 at an average hourly labor rate of Tk.8.16
Actual factory overhead for the year 2009:
Variable Tk.181,500
Fixed Tk.114,000
A total of 110000 units of G were completed and transferred to finished goods inventory.
Marketing and administrative expenses were Tk.681,000.
Required:
Prepare an income statement for the year 2009, including all manufacturing cost variances and using
the two-variance method for factory overhead.
[Marks: 4+4+12 = 20]
= THE END =
Page 39 of 51
SUBJECT: 303.CORPORATE LAWS, GOVERNANCE & SECRETARIAL PRACTICES.
 Answer FIVE questions taking any THREE from Part-A and TWO from Part-B including
question No. 5 which is compulsory.
PART – A : CORPORATE LAWS
Q. No. 1.
a) Differentiate between a private limited company, public limited company and a company by
guarantee.
(b) What are the formalities to be observed in transforming a public limited company from a private
limited company?
(c) Define subsidiary company.
[Marks: 5+10+5) = 20]
Q. No. 2.
a) State the provisions of the Companies Act, 1994 as to appointment of Managing Director.
b) Discuss the qualifications of a director of a company.
c) Directors are trustees as well as agents of the company – Discuss. [Marks: 5+5+10=20]
Q. No. 3.
a) What are the pre-requisites of a valid meeting?
b) Outline the rules governing the issue of notice for a company’s General Meeting.
c) When and how is special resolution passed by a company?
[Marks: 7+6+7=20]
Q. No. 4.
a) What are the powers of the Registrar of Joint Stock Companies and Firms with respect to
inspection of Books of Account?
b) What are the duties of the Directors in relation to inspection of Books of Account?
c) What are the penalties for failure of the Directors in relation to inspection of Books of Account?
[Marks: (8+8+4) = 20]
Q. No. 5.
Write short notes on any 4 (four) of the following:
(i) Corporate Governance;
(ii) Statement in lieu of Prospectus;
(iii) Director’s Report;
(iv) Divisible Profit;
(v) Appointment of Auditor;
(vi) Extra Ordinary General Meeting.
[Marks: (4 x 5) = 20]
PART – B : CORPORATE GOVERNANCE AND SECRETARIAL PRACTICES.

Q. No. 6.
A foreign company is contemplating to start its business in Bangladesh and seeks your opinion over
the legal position of opening its business in the form of a subsidiary. Advise the legal steps covering
taxation, remittance and employment.
[Marks : 20]
Q. No. 7.
A listed company in its Board meeting for approval of accounts took the following decisions:
i) Interim Dividend 20% already paid, proposed final dividend 20% in addition to interim;
ii) Auditors – existing auditors have consented to their re-appointment;
iii) Acquiring 40% stock in an existing company;
iv) Appointment and remuneration of Chief Financial Officer approved;
v) Bonus issues utilizing all available reserves; and
vi) Increase in paid up capital through issue of shares to existing shareholders.
Page 40 of 51
SUBJECT: 303.CORPORATE LAWS, GOVERNANCE & SECRETARIAL PRACTICES.
Q. No. 7. (contd....)
Draft a notice for the forthcoming Annual General Meeting of the company and agenda containing
items that are normally included in an Annual General Meeting for members’ approval. Point out
which of the above items would be included in the Directors’ Report.
[Marks: 20]
Q. No. 8
a) Discuss the role of a company secretary in a public listed company?
(b) State the provisions that have to be complied with regard to carrying out Cost Audit and
penalties applicable for not carrying out Cost Audit by a large textile industry.
[Marks: (10+10) = 20]
= THE END =
Page 41 of 51
SUBJECT: 304. AUDITING.
Q. No. 1.
(a) What do you know about limitation of scope of audit and as an Auditor what will be your
responsibilities in this regard?
(b) What is meant by the concept of Audit Methodology and Audit Administration?
(c) Define related party transaction. How can you verify the related party transactions at the time of
audit?
[Marks: (5x3) = 15]
Q. No. 2.
(a) Explain the meaning and significance of the harmonization of financial reporting and audit
practice in the context of corporate development of Bangladesh.
(b) X Ltd., a newly established company has invited your firm as the first Auditor of the Company.
Keeping in mind ISA-210 “Terms of Audit Engagements”, you are required to write a formal
letter to the directors setting out the responsibilities for the company’s financial statements for
directors as well as your firm as auditors’.
[Marks: (10+5) = 15]
Q. No. 3.
Under the code of Ethics for professional Accountants, issued by IFAC, a Professional Accountant in
public practice is required to comply with some fundamental principles. In the light of the IFAC code,
you are required to:
(i) State and discuss FIVE fundamental principles;
(ii) State FIVE broad categories of threats encountered by the professionals.
(iii) State FIVE safeguards that may be created by the profession, legislation or regulation to
eliminate or reduce the threats.
[Marks: (5+5+5) = 15]
Q. No. 4.
(a) Do you think that introduction of Cost Audit would be beneficial for the economy of
Bangladesh?
(b) Write down the provision of Cost Audit in the Companies Act, 1994.
[Marks: (5+5) = 10]
Q. No. 5.
(a) What do you understand by the term “Computer Assisted Audit Techniques’? What are
common types of CAATs applicable in EDP environment?
(b) Discuss the design and control procedures which the auditor should adopt in applying CAAT in
an audit under EDP environment.
(c) To what extent can the external auditor of a company rely upon the efficacy of an internal
control system to reduce the extent of his checking the transactions?
[Marks: (5+4+6) = 15]
Page 42 of 51
SUBJECT: 304. AUDITING.
Q. No. 6.
Discuss the following with reference to the International Standard on Auditing:
(a) ISA 200
(i) Audit Risk and Materiality, (ii) Reasonable Assurance
(b) ISA 240
(i) Internal limitation of an Audit, (ii) Professional Skepticism
(c) ISA 300
(i) The overall Audit plan, (ii) The Audit program.
[Marks: (6x2.5) = 15]
Q. No. 7.
Management representation are an important source of audit evidence. These representations may be
oral or written and may be obtained either on an informal or formal basis. Auditors will include
information obtained in this manner in their audit working papers where it forms part of their total
audit evidence.
Required:
(a) Explain the nature and role of the letter of representation.
(b) Explain why it is important for the auditor to discuss the contents of the letter of representation
at an early stage of the audit.
(c) Discuss the implications for the auditor of a small company; if the directors refuse to sign the
letter of representation.
[Marks: (7+4+4) = 15]
= THE END =
Page 43 of 51
PROFESSIONAL LEVEL-IV
SUBJECT: 401. FINANCIAL MANAGEMENT.
Q. No. 1.
(a) “Working capital management deals with decisions regarding the appropriate mix and level of
current assets and current liabilities” Elucidate the statement:
(b) A proforma cost sheet of a company provides the following particulars:
Unit cost (Tk.)
Element of cost:
Raw materials 80
Direct labor 30
Overhead 60
Total cost 170
Profit 30
Selling price 200
The following further particulars are available:
Raw materials in stock, on average one month;
Materials are in process, on average half a month;
Finished goods in stock, on average one month.
Credit allowed by suppliers is one month; Credit allowed to debtors is two months;
Average time lag in payment of wages is 11/2 weeks and one month in overhead expenses. One-forth
of the output is sold against cash; Cash in hand and at bank is expected to be Tk. 365,000.
Required:
Prepare a statement showing the working capital needed to finance a level of activity of 104,000 units
of production. You may assume that production is carried on evenly throughout the year, and wages
and overheads accrue similarly.
[Marks: (5+15) = 20]
Q. No. 2.
(a) Describe briefly the major types of financial management decisions that business firms make.
(b) Describe briefly the ingredients and objectives of portfolio management.
(c) Calculate operating and Financial Leverage under situation A, B and C and Financial plans 1, 2
and 3 respectively from the following information relation to the operation and capital structure
of XYZ Co. Also find out the combinations of operating and financial leverage which give the
highest value and the least value. How are these calculations useful to the financial manger of a
company?
Installed capacity 1200 units
Actual production and sales 800 units
Selling price per unit Tk. 15
Variable cost per unit Tk. 10
Fixed cost:
Situation A 1,000
Situation B 2,000
Situation C 3,000
Capital structure Financial plan

1 2 3
Equity 5,000 7,500 2,500
Debt 5,000 2,500 7,500
Cost of debt 12%
[Marks: (3+2+20) = 25]
Page 44 of 51
SUBJECT: 401. FINANCIAL MANAGEMENT.
Q. No. 3.
The balance sheet of Smart Ltd. As on March’31, current year is as follows (Figures in lakhs Tk.)
Liability Amount Assets Amount
Share capital 200 Fixed assets 500
Reserves 140 Inventories 300
Long-term loans 360 Receivables 240
Short-term loans 200 Cash and Bank 60
Payables 120
Provisions 80
1,100 1,100
Sales for the current year were Tk.600 lakh. For the next year ending on March 31, they are expected
to increase by 20 per cent. The net profit margin after taxes and dividend payout are expected to be 4
and 50 per cent respectively.
You are required to:
(a) Quantify the amount of external funds required.
(b) Determine the mode of raising the funds given the following parameters.
(i) Current ratio should be 1.33.
(ii) Ratio of fixed assets to long-term loans should be 1.5.
(iii) Long-term debt to equity ratio should not exceed 1.06.
[Marks : (5+15) = 20]

Q. No. 4.
(a) How would you analyze the financial position of a company from the point of view of (i)
Investor (ii) a creditor (iii) a financial executive of a Company.
(b) The capital of ‘E’ Co. Ltd. is as follows:
9% preference shares Tk. 10 each Tk. 300,000
Equity shares of Tk. 10 each Tk. 800,000
Tk. 11,00,000
The accountant has ascertained the following information:
Profit (after tax 60%) Tk. 270,000; Depreciation Tk. 60,000; Equity dividend paid 20%; market price
of equity shares Tk. 40.
You are required to state the following:
(i) Dividend yield on the equity shares.
(ii) Covers for the preference and equity dividends.
(iii) Earnings for the equity shares.
(iv) Price earning ratio.
[Marks: (4+16) = 20]
Q. No. 5.
(a) Differentiate between cost centre, profit centre and investment centres. Explain how
performance is measured in each?
(b) An Engineering Company has a cost of equity capital of 15%. The current market value of the
firm is Tk. 30,00,000 @ Tk. 30 per share.
Assume values for I (new Investment) Tk. 900,000, E (Earnings) Tk. 500,000, and total dividends (D)
Tk. 300,000, show that under the MM assumptions the payment of dividend does not affect the value
of the firm.
[Marks: (5+10) = 15]
= THE END =
Page 45 of 51
SUBJECT: 402. STRATEGIC MANAGEMENT ACCOUNTING.
Q. No. 1.
(a) Discuss in brief the theory of Total Quality Management (TQM).
(b) Differentiate between the production view of quality and customer view of quality.
(c) What are the technicians and tools used for analytical problem solving in production quality
areas?
(d) How is risk defined in capital budgeting analysis? List several aspects of a project in which risk
is involved; and how can risk affect the net present value of a project?
Marks: (4  5) = 20
Q. No. 2.
Siraj wholesaling is considering the purchase of a computerized system to track its delivery trucks and
vans. The new system would lower operating costs by coordinating delivery vehicles and drivers to
reduce total miles traveled per taka of revenue. The technology would cost Tk.6,00,000 and have an
expected life of 6 years with an expected salvage value of Tk.50,000 at the end of its life. Near the
end of the fourth year, it is anticipated that the communication equipment in the new system would
require maintenance by the manufacturer costing Tk.75,000. This amount is fully deductive for tax
purpose in the year incurred. Management requires that investments of this type be paid back in 5
years or less. Cost savings are anticipated to be Tk.1,45,000 in each of the first four years and
Tk.1,00,000 in each of the last two years. The company’s discount rate is 10 percent; its tax rate is 35
percent and the equipment would be depreciated for tax purposes using the straight line method with
no consideration of salvage value over a period of 5 years.
Required:
(a) Prepare a timeline for displaying cash flows. Be certained to consider the effects of taxes;
(b) Calculate the after tax pay back period;
(c) Calculate the after tax net present value on the project; and
(d) Discuss the appropriateness of making such an investment.
Marks: (4  5) = 20
Q. No. 3.
SAF Industries is one of the larger units of Akij Group. SAF produces numerous products used in
leather goods. For 2007 Akij group and SAF executive negotiated performance targets for SAF as
follows:
Performance measure Target level
Profit margin 7%
Asset turnover 2 times
Return on investment 14%
Residual Income (target return rate is 10%) Tk.5,20,000
Actual results and other data for 2007 are summarized below:
Total assets at the beginning of the year Tk.1,22,00,000
Total assets at the end of the year 1,46,00,000
Sales ………………………………………………………… 2,45,60,000
Operating expenses …………………………………………. 2,27,20,000
Page 46 of 51
SUBJECT: 402-STRATEGIC MANAGEMENT ACCOUNTING.
Q. No. 3. (Contd..)
Required:
(a) Calculate the profit margin of SAF.
(b) Determine the asset turnover of SAF.
(c) Compute the return on investment for SAF.
(d) Prove your answer to part (c) using ratios computed in part (a) and (b).
(e) Calculate residual income.
(f) Evaluate SAF’s performance for 2007.
Marks: (4+4+3+3+3+3) = 20
Q. No. 4.
The Mature Products Company is contemplating on the replacement of one of its present machines
with a new machine. The present machine is nearing at the end of its economic life, but its life can be
extended by a major overhaul. The available information is shown below:
MATURE PRODUCTS COMPANY

Machine Replacement data
Original cost of the present machine Tk.40,000

Less accumulated depreciation of the machine 30,000
Book value of the machine Tk.10,000
Purchase price of new machine Tk.1,00,000
Useful life of the new machine 5 years
Remaining life of the present machine 2 years
Overhaul cost of the present machine extending
useful life to a total of 5 years Tk.10,000
Salvage value of new machine 0
Market value of present machine, if sold Tk.4,000
Annual operating information:
Present machine New machine

Sales of products Tk.4,00,000 Tk.4,00,000
Direct material costs 90,000 90,000
Direct labour costs 80,000 60,000
Variable overhead 48,000 36,000
Fixed overhead exclusive depreciation 1,00,000 1,00,000
Depreciation 10,000 1,00,000
Required:
(a) Identify the relevant items and irrelevant items;
(b) Prepare a comparative income statement for both the machines; and
(c) Using only relevant costs, analyze whether it is desirable to purchase the new machine?
Marks: (6+8+6) = 20
Q. No. 5.
Qusem industries are a decentralized organization with six divisions. The company’s electrical
Division produces a variety of electrical items, including an X52 electrical fitting. The Electrical
Division (which is operating at capacity) sells this fitting to its regular customers for Tk7.50 each; the
fitting has a variable manufacturing cost of Tk 4.25.
Page 47 of 51
SUBJECT: 402-STRATEGIC MANAGEMENT ACCOUNTING.
Q. No. 5. (Contd..)
The company’s Brake Division has asked the Electrical Division to supply it with a large
quantity of X52 fitting for only Tk 5 each. The Brake Division, which is operating at 50% of
capacity, will put the fitting into a brake unit that it will produce and sell to a large commercial
airline manufacturer. The cost of the Brake unit being built by the brake Division follows:
Purchased parts (from outside vendors) Tk. 22.50
Electrical fitting X52 5.00
Other variable costs 14.00
Fixed overhead and administration 8.00
Total cost per brake unit Tk. 49.50
Although Tk. 5 price for the X52 fitting represents a substantial discount from the regular Tk.
7.50 price , the manager of the Brake Division believes that the price concession is necessary if
his division is to get the contract for the airplane brake units. He has heard “through the
grapevines” that the airplane manufacturer plans to reject his bid if it is more than Tk. 50 per
brake unit. Thus if the Brake Division is forced to pay the regular Tk. 7.50 price for the X52
fitting , it will either not get the contract or it will suffer a substantial loss at a time when it is
already operating at only 50% of capacity. The manager of the Brake Division argues that the
price concession is imperative to the well-being of both his division and the company as a
whole.
Qusem Industries use return on investment (ROI) and Taka profit in measuring divisional
performance.
Required
(a) Assume that you are the manager of the Electrical Division. Would you recommend that
your division supply the X52 fitting to the Brake Division for Tk. 5 each as requested?
Why or why not? Show all computations.
(b) Would it be to the economic advantage of the company as a whole for the Electrical
Division to supply the fittings to the Brake division if the airplane brakes can be sold for
Tk 50? Show all computations, and explain your answer.
(c) In principle, should it be possible for the two managers to agree to a transfer price in this
particular situation? If so, within what range would that transfer price lie?
(d) Discuss the organizational and managerial behavior problems if any, inherent in this
situation. What would you advise the company's President to do in the situation?
Marks: (4 x 5) = 20
= THE END =
Page 48 of 51
SUBJECT: 403. STRATEGIC MANAGEMENT AND ORGANIZATIONAL BEHAVIOR.
 Answer any THREE questions from Group-“A” and TWO questions from Group-“B”.
 All questions carry equal marks.
PART – A: STRATEGIC MANAGEMENT
Q. No. 1.
(a) ICMAB is planning a strategy development drive. As part of this process they have asked you
to conduct an analysis of the external environment for them. Use the Porter’s Five Forces
framework and do an analysis of the external environment of ICMAB.
(b) What are the major drivers of strategy? Explain the key drivers of Strategy in Banking Sector of
Bangladesh. [Marks: (10+10) = 20]
Q. No. 2.
(a) What is corporate strategy? How do you think the strategy-making pyramid will differ for a
diversified company and for a single-business company?
(b) How can a manager judge which strategic option is best for the company?
[Marks: (14+6) = 20]
Q. No. 3.
(a) “Strategic management is an ongoing process, not a start – stop even.” – explain.
(b) Your client is a large owner and operator of hotels and vacation resorts. It also runs a highly
successful customer rewards program that gives guests the opportunity to earn points for each
stay. The company is considering partnering with some small budget hotels and offering guests
the opportunity to earn points for stays at participating budget hotels as well. Should it go ahead
with this partnership? What should it think about in order to make this decision?
[Marks: (10+10) = 20]
Q. No. 4.
(a) Describe the features of a successful entrepreneur.
(b) Distinguish between entrepreneurial start up and growth strategies.
(c) Discuss the entrepreneurial support services. [Marks: (6+8+6) = 20]
Q. No. 5.
(a) How does multi-country strategy differ from global strategy? Give examples.
(b) Distinguish between licensing and franchising. When will you use these types of strategies?
(c) How does forward integration differ from backward integration? When will you suggest firms
to go for backward integration? Give examples of some companies that follow backward
integration in Bangladesh. [Marks: (6+6+8) = 20]
PART – B: ORGANIZATIONAL BEHAVIOR
Q. No. 6.
(a) Distinguish between individual behavior and organizational behavior.
(b) State the significance of O.B. in managing an organization.
(c) Sketch and explain a standard O.B. model. [Marks: (5+5+10) = 20]
Q. No. 7.
(a) Briefly describe the stages of socialization process with examples.
(b) What is MBO? Explain the key elements of MBO with examples.
(c) Explain the situational leadership theory with examples. [Marks: (6+8+6) = 20]
Q. No. 8.
(a) What is Equity theory of Motivation? Describe any situation in real life which can explain the
Equity theory.
(b) Do you think deviant workplace behavior is good for an organization? Give your reasons.
Suggest some ways to tackle it.
(c) Discuss the five value dimensions of national culture described by Hofstede. Explain where
Bangladesh ranks on each of the five dimensions. [Marks: (6+6+8) = 20]
= THE END =
Page 49 of 51
SUBJECT: 404-COST AND MANAGEMENT AUDITING.
PART – A: COST AUDITING (MARKS: 50)
Q. No. 1.
(a) “Not only the Manufacturing Company but all cost centers require Cost Audit” – Discuss.
(b) State the various steps and procedures in appointment of a cost auditor.
[Marks: (4+4) = 8]
Q. No. 2.
(a) Discuss the provisions of professional misconduct in relation to Cost and Management
Accountants in practices.
(b) Cost audit is important for evaluating the appropriate product cost and price. As a Cost auditor
prepare an audit plan and program for the product costing and pricing of consumer and
industrial products.
[Marks: (7+8) = 15]
Q. No. 3.
(a) Why Cost Accounting Record Rules of one industry vary from the other?
(b) Briefly discuss the salient provisions of Cost Accounting Record Rules of any one of the
following industry:
(i) Jute (ii) Sugar.
[Marks: (7+8) = 15]
Q. No. 4.
As a Cost Auditor of a Textile Mill, prepare a draft Cost Audit Report for the management of the
company on your findings of the following irregularities during the course of your audit:
(i) Variation in inventory valuation;
(ii) Under absorption of overhead;
(iii) Shortage of spares during physical verification; and
(iv) Under utilization of plant capacity.
[Marks: (3 x 4) = 12]
PART – B: MANAGEMENT AUDITING (MARKS: 50)
Q. No. 5.
“Management Audit also includes Audit of Management Information Systems, Decisions Support
System, Enterprise Risk Management for control purposes to achieve the objectives” – Discuss.
[Marks: 15]
Q. No. 6.
(a) Corporate Governance deals with two broad functions of an organization:
(i) Performance and (ii) Conformance issues. Please describe what do you understand by them.
(b) How the Management Audit helps establishing good corporate governance in an Organization?
[Marks: (8+7) = 15]
Q. No. 7.
(a) Describe role of the following in establishing good corporate governance in an organization:
(i) Company Secretary
(ii) Head of Audit Committee
(iii) Chief Finance Officer/Head of Finance
(iv) Management Auditor
(b) What are the common problems that the management face while establishing corporate
governance in Bangladesh?
[Marks: (12+8) = 20]
= THE END =
Page 50 of 51
SUBJECT: 404-COST AND MANAGEMENT AUDITING.
PART – A: COST AUDITING (MARKS: 50)
Q. No. 1.
(a) “Not only the Manufacturing Company but all cost centers require Cost Audit” – Discuss.
(b) State the various steps and procedures in appointment of a cost auditor.
[Marks: (4+4) = 8]
Q. No. 2.
(a) Discuss the provisions of professional misconduct in relation to Cost and Management
Accountants in practices.
(b) Cost audit is important for evaluating the appropriate product cost and price. As a Cost auditor
prepare an audit plan and program for the product costing and pricing of consumer and
industrial products.
[Marks: (7+8) = 15]
Q. No. 3.
(a) Why Cost Accounting Record Rules of one industry vary from the other?
(b) Briefly discuss the salient provisions of Cost Accounting Record Rules of any one of the
following industry:
(i) Jute (ii) Sugar.
[Marks: (7+8) = 15]
Q. No. 4.
As a Cost Auditor of a Textile Mill, prepare a draft Cost Audit Report for the management of the
company on your findings of the following irregularities during the course of your audit:
(i) Variation in inventory valuation;
(ii) Under absorption of overhead;
(iii) Shortage of spares during physical verification; and
(iv) Under utilization of plant capacity.
[Marks: (3 x 4) = 12]
PART – B: MANAGEMENT AUDITING (MARKS: 50)
Q. No. 5.
“Management Audit also includes Audit of Management Information Systems, Decisions Support
System, Enterprise Risk Management for control purposes to achieve the objectives” – Discuss.
[Marks: 15]
Q. No. 6.
(a) Corporate Governance deals with two broad functions of an organization:
(i) Performance and (ii) Conformance issues. Please describe what do you understand by them.
(b) How the Management Audit helps establishing good corporate governance in an Organization?
[Marks: (8+7) = 15]
Q. No. 7.
(a) Describe role of the following in establishing good corporate governance in an organization:
(i) Company Secretary
(ii) Head of Audit Committee
(iii) Chief Finance Officer/Head of Finance
(iv) Management Auditor
(b) What are the common problems that the management face while establishing corporate
governance in Bangladesh?
[Marks: (12+8) = 20]
= THE END =
Page 51 of 51

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THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH

CMA APRIL-2010 EXAMINATION

PART – A : BUSINESS COMMUNICATION

PART – B : OFFICE MANAGEMENT

PART – A : BUSINESS MATHEMATICS

PART – B : BUSINESS STATISTICS

Month DSE CSE Month DSE CSE

Year 2000 2001 2002 2003 2004

Life (in hours) No. of bulbs

GROUP – A : BUSINESS ECONOMICS

GROUP – B : INTERNATIONAL BUSINESS

Beginning, January 1, 2004 Ending, December 31, 2004

PART – A : MANAGEMENT (TOTAL MARKS-50)

Two marks are reserved for neatness and relevance

PART – B : MARKETING MANAGEMENT (TOTAL MARKS-50)

Two marks are reserved for neatness and relevance

Chemical Company is considering implementing an activity-based costing system, its

Activity Driver OH rate Direct Consumption

(a) How does zero-based budgeting differ from traditional budgeting?

Standard cost Operating Result

GROUP – A : COMMERCIAL LAW

GROUP – B : INDUSTRIAL LAW

[Marks: (10+2+3) = 15]

Particulars Amount (Tk.) Particulars Amount (Tk.)

Sources Mr. A Mr. B Mr. C

Time : Three hours Full Marks: 100

(viii) Branch cash expenses for the year are as under:

PART – B : CORPORATE GOVERNANCE AND SECRETARIAL PRACTICES.

[Marks: (10+10) = 20]

Capital structure Financial plan

[Marks : (5+15) = 20]

MATURE PRODUCTS COMPANY

Original cost of the present machine Tk.40,000

Present machine New machine

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