[4] Total No. of Questions: 6 Total No.
of Printed Pages:4
Total production is 50000 units annually. An outsider supplying Enrollment No......................................
this product has offered to supply this at Rs. 49 per unit with no
change in quality and with regular supply. Should the company Faculty of Management
go for buying in place of making the part? End Sem (Odd) Examination Dec-2017
OR iii. What is meant by Marginal costing? Describe its importance. 6
MS3C009 Cost & Management Accounting
Programme: BBA Branch/Specialisation: Management
Q.6 Attempt any two:
i. What is budgeting? Explain the different types of budgets 5 Duration: 3 Hrs. Maximum Marks: 60
ii. The following information are obtained from the costing records 5 Note: All questions are compulsory. Internal choices, if any, are indicated. Answers of
of a company: Q.1 (MCQs) should be written in full instead of only a, b, c or d.
Materials Standard Actual
Quantity Rate Quantity Rate Q.1 i. Cost Accounting is based upon which System- 1
X 600 10 700 9 (a) Single entry (b) Double entry
Y 400 8 300 9 (c) American Accounting (d) Mahajani
-------- --------- ii. Management Accounting is a Framework for: 1
1000 1000 (a) Accounting (b) Costing
Wastage 100 190 (c) Decision-Making (d) Management
-------- ------- iii. Economic order quantity means purchase of material--------)- 1
Output 900 810 (a) In appropriate quantity (b) At appropriate time
(c) From appropriate place (d) At appropriate rate
From the above information find out the following: iv. Cake from crushing process in oil industries, is called- 1
(a) Material Cost variance (a) Main Product (b) Normal wastage
(b) Material mix Variance (c) By product (d) Co-product
iii. What do you understand by variance? Explain types of variance. 5 v. In ABC analysis, which category represents those items which are 1
used in largest quantity but their value is not high)-
(a) A (b) B (c) C (d) None of these
****** vi. During the situation of rising prices which method of the 1
valuation of inventory tends to value the stock at lower price)-
(a) LIFO (b) FIFO (c) Inflated price (d) Standard price
vii. Due to change in the production units the marginal cost per unit 1
will be-------
(a) Increased (b) Decreased (c) Fluctuated (d) Fixed
viii. Margin of safety is---- 1
(a) Sales – B.E.P. (b) Sales – fixed cost
(c) Sales – variable cost (d) Contribution + fixed cost.
P.T.O.
[2] [3]
ix. A budget is prepared for ----------period. 1 Q.4 i. From the following particulars determine the economic order 3
(a) Present (b)Past (c) Future (d) All of these quantity.
x. Which formula is used for Material Mix variance)- 1 Annual usage 4000 units
(a) SP (RSQ-AQ) (b) AP (RSQ-AQ) Cost of placing and receiving an order Rs.60 per unit
(c) SP (SQ-AQ) (d) SP(SQ-RSQ) Purchasing price per unit Rs. 10
Annual inventory Carrying Cost Rs. 3 per unit.
Q.2 i. What is Cost Accounting? 2 ii. Calculate Re-ordering Level, Minimum Stock Level, Maximum 7
ii. What is the nature of Management Accounting? 3 Stock Level From the Following Particulars:
iii. What are the elements of cost? Explain the difference between 5 Maximum Consumption 140 units per day
direct cost and indirect cost. Normal Consumption 100 units per day
OR iv. What do you mean by Management Accounting? How 5 Minimum Consumption 60 units per day
Management Accounting is differ from Cost Accounting Reorder quantity 1000 units
Reorder period 10 to 14 days.
Q.3 i. What do you mean by ‘BY-Product’? 2 OR iii. Prepare a store ledger account for the month of January, showing 7
ii. A Company Produced 5,000 articles in the year 2012. The cost 8 the issue of material on first in first out method from the following
information are as under: information-
Opening stock of Materials 4,500 Receipts Issue
Closing Stock of Materials 6,500 Date unit Rate Date unit
Purchase of Materials 1,20,000 3 4000 1.00 4 1000
Factory labour 1,55,000
5 6000 1.40 7 4000
Freight on purchases 5,000
10 4000 1.50 15 6000
Octroi 2,000
Factory overheads 80,000 20 6000 1.80 25 5000
As per previous estimate:
(a) General Administrative expenses are 12.5% of total cost. Q.5 i. Selling price per unit 20 4
(b) Selling and distribution expenses are 10% of selling price. Variable cost per unit 12
(c) Profit is 20% of selling price. Fixed cost 40000
Find out per unit cost and show selling price. Find out: (a) P/v ratio (b) Amount and Quantity of BEP sales
OR iii. An article passes from three different processes. From the 8 ii. A company is manufacturing a product. The cost analysis is as 6
following information, find out the cost of production per unit of under:
that article. 200 article were manufactured- Material 25
Process(A) Process(B) Process(C) Labour 15
Material 6400 3200 1600 Variable overhead 7
Labour 2400 1600 1600 Fixed overhead 3
Direct Expenses 1600 3200 800 ----------
Total 50
Indirect expenses of Rs. 1400 to be borne by each process on the
P.T.O.
basis of wages.
