TUTOR MARKED ASSIGNMENT

COURSE CODE : BCOC – 138

COURSE TITLE : COST ACCOUNTING
ASSIGNMENT CODE : BCOC – 138/TMA/2025
COVERAGE : ALL BLOCKS
Maximum Marks: 100

Note: Attempt all the questions.

Section – A
Q.1 State the importance of costing in a modern economy. (10)

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Q.2 What do you understand by ABC analysis? How is the control of stores items

S.
effected through ABC analysis? (10)
Q.3 What are the different methods of incentives? Discuss any one of the systems of

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bonus or premium which you consider as effective. (10)

80 E
Q.4 Explain the computation of machine hour rate with the help of an example.
26 NM (10)

Q.5 A factory uses job costing. The following data is obtained from its books for the
year ended 31st December, 2023;
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Rs. Rs.
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Direct Materials 90,000 Selling and Distribution Overheads 52,500

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Direct Wages 75,000 Administration Overheads 42,000

Profit 60,900 Factory Overheads 45,000
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O

a) Prepare a Job Cost Sheet indicating the Prime Cost, Works Cost, Cost of
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Production, Cost of Sales and Sales Value. (3)

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b) In 2023, the factory received an order for a number of jobs. It was estimated that
direct materials required would be for Rs. 1,20,000 and direct labour would cost
Rs. 75,000. What should be the price for these jobs if factory intends to earn the
same rate of profit on sales as in 2023, assuming that the selling and distribution
overheads had gone up by 15%? The factory recovers factory overheads as a
percentage of direct wages and administration and selling and distribution
overheads as a percentage of works cost. (7)
 Section – B

Q.6 State how you would ascertain the actual profit on an incomplete contract. How far
such profit is taken to Profit and Loss Account. (6)
Q.7 State the main characteristics of process costing and outline the costing procedure
thereof. (6)
Q.8 Explain the various methods of accounting for by – products. (6)
Q.9 What do you mean by ‘Equivalent Production’? (6)
Q.10 A transport company runs buses at two places – A and B. From following
particulars calculate (a) Total kilometers (b) Total passenger kilometers for both

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places. (6)

S.
A B

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Number of buses 4 5
Days operated in a month 30 25

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Trip made by each bus 26 NM 4 4
Distance of route (one way) 30 kilometers 25 kilometers
Capacity of bus 60 passengers 50 passengers
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Normal passengers travelling 80% of capacity 90% of capacity

98 S

Section – C
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Q.11 Distinguish between the following: (10)

a) Direct costs and Indirect costs
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b) First in First out method (FIFO) and Last in First out method (LIFO)
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c) Time Wage System and Piece Wage System

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d) Job costing and Contract costing

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Q.12 Write short notes on the following: (10)

a) Cost Unit
b) Payroll Accounting
c) Process Loss
d) Integral Accounting
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BCOC – 138 COST ACCOUNTING

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Section – A
Q.1 State the importance of costing in a modern economy. (10)

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Ans. Costing, a critical function in the modern economy, plays a pivotal role in ensuring
efficient resource management, informed decision-making, and competitive pricing

S.
strategies. It refers to the process of determining the cost associated with the

50 NT
production of goods or services, including direct costs such as labor and raw materials,
as well as indirect overhead costs. In a dynamic economic environment, costing has
become indispensable for both public and private sector entities.

80 E
One of the primary benefits of costing is that it provides businesses with detailed
26 NM
information about the cost structure of their operations. This enables managers to
identify and control cost drivers effectively. By understanding where resources are being
consumed, organizations can optimize production processes, minimize waste, and
91 IG

improve operational efficiency. Costing also helps in budgeting and forecasting, allowing
companies to plan for future expenditures and adjust their operations in response to
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market fluctuations.
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Costing information is essential for pricing strategies. In a competitive market, setting

the right price is vital for both survival and profitability. With accurate cost data,
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companies can ensure that their prices cover costs and yield a reasonable profit margin.
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Furthermore, costing helps in performing break-even analysis, where the fixed and
variable costs are balanced against revenues, ensuring that pricing decisions support
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long-term sustainability.
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Moreover, costing supports strategic decision-making. By providing a clear picture of

product profitability, managers can decide which products or services to expand,
modify, or discontinue. This analytical approach aids in allocating resources more
effectively, ensuring that investments are directed towards the most profitable
segments. In industries characterized by rapid innovation and fluctuating demand, such
data-driven decisions are critical to maintaining competitive advantage.

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Costing also has significant implications for external stakeholders. Investors, creditors,
and regulatory bodies rely on costing data to assess the financial health of a business.
Transparent cost accounting practices bolster investor confidence and provide essential
insights during financial audits. In the public sector, effective costing mechanisms
facilitate the efficient use of taxpayer funds by ensuring that public services are
delivered cost-effectively.
The modern economy is increasingly influenced by globalization and technological
advances. This has led to the advent of sophisticated costing methods such as activity-
based costing (ABC), which allocate overhead costs more accurately to the products and

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services that drive those costs. These advanced techniques help companies to navigate

S.
complex production environments and make more precise strategic decisions.
In conclusion, costing is not merely a bookkeeping exercise but a strategic tool that

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influences almost every aspect of an organization’s performance. It enables businesses
to price products competitively, control costs, allocate resources efficiently, and provide

80 E
transparency to stakeholders. In today’s rapidly evolving economic landscape, mastering
26 NM
costing methods is essential for achieving operational excellence, sustaining
profitability, and ensuring long-term success.
Moreover, effective costing techniques foster innovation and continuous improvement
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by pinpointing inefficiencies and revealing opportunities for process refinement.

Companies investing in robust costing systems are better equipped to respond to
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market challenges, leverage new technologies, and achieve sustainable growth, thereby
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strengthening internal decision-making and bolstering confidence among investors and

customers alike globally.
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Q.2 What do you understand by ABC analysis? How is the control of stores items
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effected through ABC analysis? (10)

N

Ans. ABC analysis is a systematic method of categorizing inventory items based on their
consumption value, importance, and impact on overall operations. Rooted in the Pareto
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Principle (or the 80/20 rule), this method divides items into three distinct categories—A,
B, and C—to enable focused management and efficient control of store items.
Understanding ABC Analysis
In this approach, Category A items are those with the highest value, despite typically
representing only a small percentage of the total inventory. These items contribute
disproportionately to the overall consumption value and, therefore, require tight
control and frequent review. In contrast, Category B items hold a moderate position in

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terms of value and quantity; they are less critical than A items but still demand regular
attention. Finally, Category C items are numerous but individually contribute little to the
overall value. Although they form the bulk of the inventory, the financial impact of
mismanaging them is relatively low.
This classification system allows managers to allocate resources and attention
proportionally. By focusing on the A items, businesses can ensure that the most valuable
products are adequately stocked and safeguarded against shortages or misplacement.
For example, stringent monitoring systems, such as frequent stock reviews and
automated reorder alerts, can be implemented for Category A items, thereby

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minimizing risks associated with stockouts and overstocking.

S.
Impact on Store Control

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The control of stores items through ABC analysis is effected in several practical ways:
 Prioritized Monitoring:

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Category A items are subjected to daily or weekly reviews, given their high cost
26 NM
implications. This ensures that any discrepancies or demand fluctuations are
quickly addressed. Category B items might be monitored on a bi-weekly or
monthly basis, while Category C items are reviewed less frequently. This
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prioritization helps in the optimal allocation of managerial time and effort.

 Tailored Inventory Policies:
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Procurement policies can be customized based on the category. For instance, A

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items may require tighter procurement controls, such as detailed supplier

evaluations and more accurate demand forecasting. This minimizes holding costs
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and reduces the risk of expensive stockouts. Conversely, simpler policies may be
adopted for C items, where the administrative burden can be lower without
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significantly impacting overall cost.

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 Optimized Storage and Security:

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High-value A items are usually stored in more secure, easily accessible areas to
protect against theft, damage, or misplacement. Such strategic placement not
only enhances security but also improves efficiency in retrieving these items
when needed. In contrast, C items, which are less valuable, can be stored in less
prominent locations without affecting overall operational efficiency.
 Efficient Resource Allocation:
By understanding the relative importance of each item, managers can focus on
cost-saving initiatives for high-value products while applying bulk management

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techniques for low-value items. This targeted approach results in a more

streamlined and cost-effective inventory control system.
In summary, ABC analysis is an essential tool for modern inventory management. It
enables organizations to control store items effectively by prioritizing resources,
tailoring procurement and storage strategies, and ensuring that critical items receive the
attention they need for maintaining overall operational efficiency.
Q.3 What are the different methods of incentives? Discuss any one of the systems of
bonus or premium which you consider as effective. (10)

IN
Ans. In today’s competitive business environment, incentives play a crucial role in

S.
motivating employees and enhancing overall organizational performance. Incentives can
be broadly classified into monetary and non-monetary forms. Monetary incentives

50 NT
include methods such as:
 Cash Bonuses: Direct payments made to employees based on performance,

80 E
project completion, or meeting specific targets.
26 NM
 Profit Sharing: A system where employees receive a share of the company’s
profits, aligning their interests with organizational success.
91 IG

 Commission: Often used in sales roles, this is a variable pay based on the amount
of sales made.
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 Piece-Rate Systems: Employees are paid according to the quantity or quality of

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output they produce.

 Stock Options and Equity Incentives: These provide employees with a stake in
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the company, encouraging long-term commitment and performance.

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Non-monetary incentives, on the other hand, may include recognition awards, career
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development opportunities, flexible work arrangements, and additional leave benefits.

These methods focus on enhancing job satisfaction and overall work-life balance,
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thereby indirectly boosting productivity.

Among the various systems, the profit-sharing bonus system is particularly effective
and widely regarded for its ability to create a strong sense of ownership and teamwork
within an organization. In a profit-sharing scheme, a predetermined percentage of the
company’s profits is distributed among employees. This method not only motivates staff
to work towards the company’s success but also fosters a culture of collective
responsibility.

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Key Features of an Effective Profit-Sharing Bonus System

 Alignment of Interests:
Profit sharing aligns the interests of employees with those of the company. When
employees see a direct correlation between their efforts and the company’s
profitability, they become more invested in achieving corporate goals. This
mutual interest can lead to a more cohesive work environment where individual
performance is geared towards the overall success of the organization.
 Enhanced Motivation and Productivity:

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Knowing that a portion of the profits will be shared incentivizes employees to
contribute their best. This can result in improved efficiency, higher quality

S.
output, and increased innovation, as workers are encouraged to find ways to
reduce costs or boost revenues.

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 Fairness and Transparency:
A well-designed profit-sharing plan is transparent, with clear criteria for

80 E
distribution. This transparency can build trust between management and
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employees. When everyone understands how profits are calculated and
distributed, it minimizes perceptions of favoritism or inequity.
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 Long-Term Focus:
Profit-sharing encourages employees to think long-term. Instead of focusing
98 S

solely on immediate rewards, employees are motivated to invest in the

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sustainability and growth of the company. This is especially beneficial in

industries where stability and long-term planning are essential for success.
 Attraction
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and Retention:
A profit-sharing bonus system can serve as an attractive benefit for prospective
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employees and as a retention tool for current staff. The prospect of sharing in the
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company’s profits can be a significant draw, particularly in competitive job

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markets.
In conclusion, while there are multiple methods of providing incentives, the profit-
sharing bonus system stands out for its ability to foster a cooperative culture, enhance
productivity, and align individual efforts with corporate success. By sharing the fruits of
success, organizations not only reward their employees but also build a more
committed and engaged workforce.
Q.4 Explain the computation of machine hour rate with the help of an example. (10)

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Ans. The machine hour rate is a key metric in cost accounting that represents the cost
incurred for operating a machine for one hour. This rate helps companies allocate all
associated costs—both fixed and variable—to the products manufactured, thereby
ensuring accurate pricing, budgeting, and profitability analysis.
Components of the Machine Hour Rate
To compute the machine hour rate, it is essential to first identify all the costs involved in
operating the machine. These costs are generally divided into two categories:
1. Fixed Costs:

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These remain constant regardless of the level of machine utilization. Fixed costs

S.
include:
o Depreciation: Calculated by subtracting the salvage value from the

50 NT
purchase price and dividing the result by the machine’s useful life.
o Insurance Premiums: Regular payments to protect the machine against

80 E
risks.
26 NM
o Interest Charges: The cost of capital tied up in the machine.
o Allocated Overheads: Any other indirect costs, such as rent for the
91 IG

production space.
98 S

2. Variable Costs:
These costs vary directly with machine usage. They typically include:
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o Maintenance and Repairs: Routine servicing as well as unplanned repairs.

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o Energy Consumption: Costs associated with running the machine.

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o Consumables and Lubricants: Items that are used up during operation.

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Steps in the Computation

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The computation of the machine hour rate involves the following steps:
1. Calculate Total Annual Costs:
Sum the fixed costs (depreciation, insurance, interest, overheads) and the
variable costs (maintenance, energy, consumables) over a given period (usually a
year).
2. Determine Total Operating Hours:
Estimate the total number of hours the machine is expected to run in that period.

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This figure should account for scheduled downtime (maintenance, breaks) and
any potential unplanned stoppages.
3. Compute the Machine Hour Rate:
Divide the total annual costs by the total operating hours. The formula is:

An Example

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Consider a machine with the following details:

S.
 Purchase Price: $50,000
 Salvage Value: $5,000

50 NT
 Useful Life: 5 years

80 E
The annual depreciation is calculated as: 26 NM
91 IG

Assume the machine incurs additional annual fixed costs of $1,000 for insurance and
$1,500 for interest, making the total fixed cost $11,500. If the annual variable costs
98 S

(maintenance, energy, etc.) amount to $2,000, the total annual cost becomes:
AS

If the machine is expected to operate for 2,000 hours in a year, the machine hour rate is
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computed as:
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N
IG

This $6.75 per hour represents the cost of operating the machine for one hour. It allows
managers to accurately assign costs to products and make informed decisions regarding
pricing, cost control, and process improvements.
In summary, the machine hour rate is determined by aggregating all fixed and variable
costs associated with a machine and dividing by its total operating hours. This
systematic approach not only aids in precise cost allocation but also serves as a critical
tool in strategic decision-making, ensuring that operational expenses are adequately
reflected in product pricing and overall cost management.

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Q.5 A factory uses job costing. The following data is obtained from its books for the
year ended 31st December, 2023;

a) Prepare a Job Cost Sheet indicating the Prime Cost, Works Cost, Cost of Production,

IN
Cost of Sales and Sales Value. (3)

S.
b) In 2023, the factory received an order for a number of jobs. It was estimated that
direct materials required would be for Rs. 1,20,000 and direct labour would cost Rs.

50 NT
75,000. What should be the price for these jobs if factory intends to earn the same
rate of profit on sales as in 2023, assuming that the selling and distribution overheads
had gone up by 15%? The factory recovers factory overheads as a percentage of direct

80 E
wages and administration and selling and distribution overheads as a percentage of
26 NM
works cost. (7)
ans.
91 IG
98 S
AS
U
O
N
IG

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IN
S.
50 NT
80 E
26 NM
91 IG
98 S
AS
U
O
N
IG

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IN
S.
50 NT
80 E
26 NM
91 IG
98 S
AS
U
O
N
IG

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Section – B
Q.6 State how you would ascertain the actual profit on an incomplete contract. How
far such profit is taken to Profit and Loss Account. (6)
Ans.

IN
S.
50 NT
80 E
26 NM
91 IG
98 S
AS
U
O
N
IG

Q.7 State the main characteristics of process costing and outline the costing procedure
thereof. (6)
Ans. Process costing is a method used in industries where production occurs
continuously, and the output is homogeneous. The key characteristics include:

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 Continuous Production – It is suitable for industries such as chemicals, textiles,

and food processing, where goods are produced in a continuous flow.
 Standardized Products – The output is uniform and indistinguishable from each
other.
 Accumulation of Costs by Process – Costs are assigned to each stage or process
rather than individual units.
 Average Costing – Total costs incurred in a process are divided by the number of

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units produced to determine the per-unit cost.
 Losses and Wastage Consideration – Normal and abnormal losses are accounted

S.
for in cost calculations.

50 NT
 Sequential Processing – The output of one process becomes the input for the
next.

80 E
 Work-in-Progress Valuation – Incomplete units at different stages are valued
26 NM
based on equivalent units of production.
Costing Procedure in Process Costing
91 IG

 Identify the Processes – Determine distinct production stages.

 Accumulate Costs – Collect direct material, labor, and overhead costs for each
98 S

process.
AS

 Calculate Equivalent Units – Convert incomplete work into equivalent full units.
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 Determine Process Cost per Unit – Divide total process cost by equivalent units.
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 Allocate Costs to Finished and Work-in-Progress Units – Assign costs to

completed and unfinished units.
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 Transfer Costs to the Next Process or Finished Goods – Move costs along the
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production flow until completion.

This method ensures accurate cost control in mass production industries.
Q.8 Explain the various methods of accounting for by – products. (6)
Ans. By-products are secondary products obtained incidentally during the production of
the main product. The accounting treatment of by-products depends on their value and
significance in relation to the main product. The common methods are:

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1. Non-Revenue Methods (No Recognition of By-Product as Revenue)

Used when by-products have negligible value.
 Other Income or Miscellaneous Credit Approach: The sale proceeds from by-
products are credited to a miscellaneous income account instead of affecting the
cost of the main product.
 Production Cost Reduction Method: The net realizable value of the by-product is
deducted from the total production cost of the main product, reducing its cost
per unit.

IN
2. Revenue Methods (Recognition of By-Product as Revenue)

S.
Used when by-products have significant value.

50 NT
 Market Value Method: By-products are valued at their market price and
recorded as sales revenue.

80 E
 Replacement Cost Method: The by-product is valued at the cost required to
26 NM
replace it in case of loss.
 Joint Cost Apportionment Method: A portion of the total production cost is
91 IG

allocated to by-products based on relative sales value or weight.

3. Additional Processing Cost Method
98 S

If a by-product requires further processing, the cost incurred is deducted from its sale
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price to determine its net realizable value, which is then accounted for as revenue.
The choice of method depends on the industry and the significance of the by-product's
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value.
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Q.9 What do you mean by ‘Equivalent Production’? (6)

N

Ans. Equivalent production is a key concept in process costing, used to determine the
IG

cost of partially completed units in a production process. Since some units remain
incomplete at the end of an accounting period, they must be converted into an
equivalent number of fully completed units for accurate cost allocation.
Concept of Equivalent Units
Equivalent units represent the work done on incomplete units in terms of fully
completed units. For example, if 100 units are 50% complete, they are considered
equivalent to 50 fully completed units.

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Calculation of Equivalent Production

The equivalent production is calculated by multiplying the number of incomplete units
by their percentage of completion for each cost element (materials, labor, and
overheads).
Formula:
Equivalent Units=Number of Incomplete Units×Percentage of Completion\text{Equivale
nt Units} = \text{Number of Incomplete Units} \times \text{Percentage of
Completion}Equivalent Units=Number of Incomplete Units×Percentage of Completion

IN
Elements Considered in Equivalent Production

S.
 Opening Work-in-Progress (WIP): Units carried forward from the previous period

50 NT
with some work already done.

 Units Started and Completed: Fully completed units during the period.

80 E
 Closing Work-in-Progress: Partially completed units at the end of the period.
26 NM
 Normal and Abnormal Losses: Normal loss is ignored in equivalent production
calculations, while abnormal loss is considered separately.
91 IG

Importance of Equivalent Production

98 S

 Helps in accurate cost allocation for partially completed units.

AS

 Ensures fair valuation of work-in-progress inventory.

 Provides a basis for process costing in industries like chemicals, textiles, and food
U

processing.
O

Q.10 A transport company runs buses at two places – A and B. From following
N

particulars calculate (a) Total kilometers (b) Total passenger kilometers for both
places.
IG

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IN
Ans.

S.
50 NT
80 E
26 NM
91 IG
98 S
AS
U
O
N
IG

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Section – C
Q.11 Distinguish between the following:
a) Direct costs and Indirect costs

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b) First in First out method (FIFO) and Last in First out method (LIFO)

S.
c) Time Wage System and Piece Wage System
d) Job costing and Contract costing

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ans. (a) Direct Costs vs. Indirect Costs

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Basis Direct Costs 26 NM Indirect Costs
Definition Costs directly attributable to a Costs that cannot be directly traced
specific product or service. to a specific product or service.
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Examples Raw materials, direct labor wages, Factory rent, electricity, supervisor
manufacturing supplies. salaries, depreciation.
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Allocation Assigned to a single cost unit. Apportioned among multiple cost

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units.
Variability Varies with production levels. May remain fixed or semi-variable.
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Significance Essential for cost control and Necessary for overall business
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pricing decisions. operations.

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(b) FIFO vs. LIFO

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Basis FIFO (First In First Out) LIFO (Last In First Out)

Definition Oldest inventory is used/sold Newest inventory is used/sold
first. first.
Costing Impact Lower cost of goods sold in Higher cost of goods sold in
inflation. inflation.
Profitability Higher profit margins in rising Lower profit margins in rising

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prices. prices.
Stock Closing stock reflects latest costs. Closing stock reflects oldest costs.
Valuation
Suitability Used in perishable goods Used where inventory does not
industries. spoil.
(c) Time Wage System vs. Piece Wage System
Basis Time Wage System Piece Wage System

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Definition Workers are paid based on time Workers are paid based on

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worked. output produced.
Formula Wage = Hours worked × Hourly rate. Wage = Units produced × Rate

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per unit.
Efficiency Encourages time commitment. Encourages higher productivity.

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Focus
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Risk to No incentive for extra efficiency. Earnings depend on speed and
Employees effort.
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Suitability Used where quality is more important Used in manufacturing where

than speed (e.g., research, teaching). output is easily measurable.
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(d) Job Costing vs. Contract Costing

Basis Job Costing Contract Costing
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Definition Costing method for individual, Costing method for large projects
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customized jobs. or contracts.

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Nature of Work Short-term, small-scale. Long-term, large-scale.

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Cost Costs collected for each job Costs accumulated over the
Accumulation separately. contract duration.
Examples Printing, furniture making. Road construction, building
projects.
Billing Billed upon job completion. Progress payments are made
over time.
Q.12 Write short notes on the following:

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a) Cost Unit
ans. A cost unit is a standard measure used to determine and allocate costs in cost
accounting. It represents a quantifiable unit of a product or service to which costs are
assigned. The selection of a cost unit depends on the nature of the business and the
product or service being offered.
For example:
 In manufacturing, the cost unit may be per unit of product (e.g., per ton of steel,
per liter of oil).

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 In transportation, it may be per kilometer or per passenger.

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 In electricity generation, it may be per kilowatt-hour (kWh).

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Cost units help in cost control, pricing decisions, and profitability analysis. They enable
businesses to measure and compare costs effectively, ensuring efficient resource

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allocation. Depending on the industry, cost units may be simple (one measure) or
composite (a combination of two measures, such as per passenger-kilometer in
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transport). By using cost units, businesses can maintain consistency in cost calculation
and financial reporting.
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b) Payroll Accounting
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ans. Payroll accounting is the process of recording and managing employee

compensation, including wages, salaries, bonuses, and deductions. It ensures accurate
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financial reporting and compliance with tax regulations.

Key components of payroll accounting include gross wages, which are the total earnings
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before deductions, and net pay, which is the amount employees receive after
O

deductions. Deductions may include income tax, provident fund contributions,

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insurance premiums, and loan repayments. Employers must also account for payroll
liabilities, such as employee benefits and employer contributions to social security and
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retirement funds.
Payroll accounting involves several steps, including recording employee work hours,
calculating earnings, deducting taxes, and preparing payroll reports. Businesses often
use payroll software to automate calculations and ensure compliance with tax laws.
Proper payroll accounting is essential for financial accuracy, employee satisfaction, and
legal compliance. It helps organizations manage cash flow, maintain tax obligations, and
avoid penalties related to non-compliance with labor laws and tax regulations.

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c) Process Loss
ans. Process loss refers to the reduction in a group’s efficiency and productivity due to
factors that hinder optimal performance. It occurs when the potential effectiveness of a
team is compromised by coordination difficulties, motivational issues, or
communication barriers.
One common cause of process loss is coordination loss, which happens when team
members struggle to synchronize their efforts, leading to inefficiencies. For instance, in
brainstorming sessions, people may talk over each other, reducing clarity and idea

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generation. Another cause is motivational loss, where individuals contribute less due to
a perceived lack of accountability, often seen in social loafing—where some members

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rely on others to complete tasks.

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Process loss is particularly significant in larger teams, where decision-making can
become slow, and individual efforts may be diluted. To mitigate this, organizations can
improve leadership, set clear roles, and enhance communication channels.

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Understanding process loss helps in designing more effective teamwork strategies to
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maximize productivity and performance.
d) Integral Accounting
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ans. Integral Accounting is a holistic approach to financial and non-financial

measurement that goes beyond traditional accounting systems. It considers multiple
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dimensions of value creation, ensuring that all stakeholders—individuals, organizations,

communities, and the environment—are accounted for in economic activities.
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This method is based on six interconnected value categories: Commodity, Custom &
Culture, Knowledge, Money, Technology, and Well-being. Commodity refers to
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tangible resources, while Custom & Culture captures social and historical significance.
O

Knowledge includes intellectual contributions, and Money represents financial

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transactions. Technology reflects tools and innovations, whereas Well-being accounts

for human and ecological health.
IG

By integrating these values, businesses and institutions can make more ethical,
sustainable, and community-driven decisions. Integral Accounting is particularly relevant
in corporate social responsibility (CSR), environmental sustainability, and social
entrepreneurship. It shifts the focus from profit maximization to overall well-being,
fostering long-term economic and social benefits.
This approach is gaining attention as organizations recognize the need for accountability
beyond financial metrics to ensure sustainability and inclusivity in the global economy.

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S.
50 NT
80 E
26 NM
91 IG
98 S
AS
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