ModelTestPaper2011 BBAPartIII Cost&ManagementAccounting

Explainsourcesandutilizationoffund. Whatdoyouunderstandbycosting. Whatismeantbycostaccounting. Namefourmethodofcosting. Explaintermcostcentre? Differencebetweencosting&costaccounting. WritetwoobjectiveofProcessCosting. WhatisABCtechnique? WhatisJITpurchase. WhatismeantbyCapitalBudgeting? WritetheformulaofEmersionplan. Statethenameoffourindustrieswhereunitcostingisapplied. Explainescalationclauseinthecontextofcontractcosting/ What is the importance of escalationclause? Q.14 Whatismeantbyretentionmoney? Q.15 Whatdoyoumeanbyabnormaleffective. Q.16 Whatdoyoumeantbymarginalcosting? Q.17 GivefourdifferencebetweenCashFlow&FundFlow? Q.18 Explaintworeasonfordifferenceinprofitaspercostbookandfinancialbooks Q.19 Statetwofactorseffectingbreakevenpoint. Q.20 WhatdoyoumeanbyStandardCosting. Essaytypequestions. Q.1 WhatdoyoumeanbyOpportunityCost? Q.2 WhatdoyoumeanbyInternalRateofReturn?HowitisbeneficialforFinancialManagement? Q.3 WhatdoyoumeanbyFinancialManagement?ExplaindifferenttaskofFinancialManager. Q.4 The Standard Metal Co. Ltd. : manufactures, a single product. The standard of which is as follows: MaterialX60%atRs.20 MaterialY40%atRs.10 Normal loss in production is 20% of input. Due to shortage of m aterial X, the standard mix was charged.ActualresultsforMarch,1996wereasfollows: MaterialX 210kgs. atRs.20 = 4,200 MaterialY 190kgs. atRs.9 = 1,710 Input 400kgs. Rs.5,910 Loss 70kgs. Output 330kgs. CalculateMaterialVariances. Q.5 AProductionDepartmentofamanufacturingcompanyhasthreedifferentmachines,foreach of which it is desired to establish machine hour rate. The overhead expenses for this departmentfortheyearended31stMarch,1996are: Rs. Rs. ConsumableStores: Power 720 MachineNo.1 300 HeatandLight 400 MachineNo.2 500 RentandRates 2,400 MachineNo.3 600 InsuranceofBuildings 200 RepairsandMaintenance: Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13

 MachineNo.1 400 InsuranceofMachine 480 MachineNo.2 600 DepreciationofMachines 7,200 MachineNo.3 800 Supervision 4,400 GeneralCharges 1,100 Additionalinformationavailableareasfollows: Effective Areaoccupied BookValueof Workinghours H.P. (Sq.ft.) Machines MachineNo.1 5 100 12,000 1,000 MachineNo.2 10 500 20,000 2,500 MachineNo.3 15 400 16,000 2,000 You are required to calculate Machine Hour Rate for each of the three machines. Show clearly the basisofapportionmentthatyouuse. Q.6 WhatdoyoumeanbyStandardCosting?Howitisbeneficialformanager. Q.7 WhatdoyoumeanbyMarginalCosting?AlsoexplainadvantageofMarginalCosting. Q.8 AFactoryproducesastandardproduct.Thefollowinginformationisgiventoyou from which youarerequiredtoprepareacostsheetfortheperiodendedon30thJune,1996: Rs. Openingstockofrawmaterials 20,000 Purchasesofrawmaterials 1,70,000 Closingstockofrawmaterials 8,000 40,000 DirectWages Otherdirectexpenses 20,000 FactoryOverhead 100%ofDirectwages OfficeOverhead 10%ofworkscost Sellinganddistributionexpenses Rs.2perunitsold Unitsoffinishedproduct: Inhandatthebeginningofperiod2,000(ValueRs.32,000 Producedduringtheperiod 20,000 Inhandattheendoftheperiod 4,000 Alsofindoutthesellingpriceassumingthatprofitis20%ofthesellingprice. Q.9 Thefollowinginformationrelatetocontract.Youarerequiredtopreparethecontractaccount andcontractorsaccountassumingthattheamountduefromcontracteewasdulyreceived. Rs. Rs. DirectMaterials 20,250 TractorExpenses: DirectWages 15,500 RunningMaterial 2,300 Storesissued 10,500 WagesofDrivers 3,000 LooseTools 2,400 DirectCharges 2,650 ThecontractwasforRs.90,000andthecontracttook13weeksinitscompletion.Thevalueofloose toolsandstoresreturnedattheendoftheyearwereRs.200andRs.3,000respectively.Theplantwas alsoreturnedatavalueofRs.16,000afterchargingdepreciationistobechargetocontract@15% perannum.Theadministrationandofficeexpensesare10%ofworkscost.