Marginal Cost
[ marks]Fixed Costs
[ marks]Direct Costs
[ marks]Opportunity Cost
[ marks]Cost unit
[ marks]Abnormal gain
[ marks]Implicit Cost
[ marks]Non-controllable Costs
[ marks]Explain the following terms.(any seven)
[14 marks]Multiple Choice Questions ( All Compulsory ) 1 Cost accounting is primarily concerned with _____. A. Historical data B. Future costs C. Financial reporting D Tax calculations 2 Which of the following is an example of a variable cost? A. Rent B. Salary C. Raw materials D Insurance 3 Normal costs are generally _____costs. A. controllable B. uncontrollable C. discretionary Davoidable 4 ____is that portion of the basic raw materials that is lost in processing having no recovery value. A. Wastage B. Spoilage C. Scrap D Defect 5 Prime costs include _____. A. Direct materials and indirect labor B. Direct labor and overheads C. Direct materials and direct labor D Fixed and variable costs 6 Job costing is most appropriate for _____. A. Mass production B. Customized products C. Process manufacturing D Standardized products 7 In cement industry, the method of costing adopted is _____. A. Process costing B. Job costing C. Contract costing D Operating costing 8 Aprofit centre is a centre______. Page 1 of Which is concerned with Where the manager has the responsibility of A. B. earning an adequate Return generating and maximising profits on Investment C. Both of the above D Which manages cost 9 Ajob is a small contract and contract is a big job. A. True B. False More information is C. Cannot say D required 10 In process costing, normal process loss is transferred to costing P&L Account. A. True B. False More information is C. Cannot say D required 11 Total cost of product is calculated as_____. A. Revenue –variable cost B. Fixed cost -variable cost C. Fixed cost + variable cost D Variable cost – fixed cost 12 Cost Classification can be done in______. A. Two ways B. Three ways C. Four ways D Many ways 13 Indirect cost is that cost incurred by the firm which______. Has already been incurred and cannot be Can be easily traceable to a A. B. avoided product Are aggregate of variable C. Are common to several product D cost 14 Batch costing is applied in industries______. Engaged in service A. Engaged in construction industry B. industry Where identical products C. Where distinct products are produced D are produced
Explain the primary differences between cost accounting and financial accounting, highlighting their unique purposes.
[7 marks]Nirja manufacturing company produces electronic devices and uses Resistor (07) R100 in its production process.In a manufacturing, a material is used as follows: Maximum consumption 12,000 units per week Minimum consumption 4,000 units per week Normal consumption 8,000 units per week Reorder quantity 48,000 units Time required for delivery: Minimum: 4 weeks Maximum: 6 weeks Emergency: 2 weeks Calculate: reorder level, minimum level, maximum level, average stock level and danger level.
[ marks]Define Cost Accounting and outline its main objectives and advantages. Page 2 of
[4 marks]Pratiti pump company uses about 75,000 valves per year and the usage is fairly constant at 6,250 per month. The valves cost ₹ 1.50 per unit and carrying cost is estimated to be 20% of average inventory investment on an annual basis. The cost to place an order and to process the delivery is ₹18. You are required to determine the most economical order quantity.
[7 marks]In case of large organizations the number and types of materials is used. In such organization importance of codification and classification is crucial and advantageous. How?
[7 marks]Explain the concept of overhead absorption, including over and under- absorption scenarios.
[7 marks]Distinguish between Time rate wage system and Piece rate wage system.
[7 marks]Om Gruh Udhyog manufacturing Khakhara. From the following particulars, calculate the earnings of workers Upasna and Sadhana . Standard time allowed: 40 units per hour Normal time rate: ₹60 per hour Differential Rate to be applied: • 80% of piece rate when below standard • 120% of piece rate at or above standard In a particular day of hours, Upasna produces 280 units(khakhara) while Sadhana produces 330 units (khakhara).
[8 marks]Navdha textile manufacturing company produces fabric through three processes: Dyeing, Weaving, and Finishing. Each process has a normal wastage percentage and a different resale value for the waste produced. The normal wastage of each process is as follows: Dyeing process - 3 per cent, Weaving process-5 per cent and Finishing process- 8 per cent. Wastage of Dyeing process was sold at 25 p.per unit that of Weaving process at 50 p.per unit and that of Finishing process is at ₹1 per unit. 10,000 units were issued to Dyeing process in the beginning of September 2024 at a cost of ₹1 per unit. The other expenses were as follows: Process Process Process Dyeing Weaving Finishing Direct ₹ 1,000 ₹ 1,500 ₹ 500 materials Labour 5,000 8,000 6,500 Direct 1,050 1,188 2,009 expenses Actual 9,500 9,100 8,100 output
[ marks]Prepare the accounts for Dyeing process and Weaving process.
[7 marks]Prepare the Finishing Process accounts.07 Assuming that there were no opening or closing stocks. Page 3 of
[4 marks]Atransport company, CityLink Transport, operates a fleet of eight buses between two towns, which are 100 km apart. Each bus has a seating capacity of 50 passengers. The following particulars are available for the month of April 2024: • Wages of drivers, conductors, and cleaners: ₹48,000 • Salaries of office and other staff: ₹20,000 • Diesel and other oils: ₹1,20,000 • Repairs and maintenance: ₹18,000 • Taxation and insurance: ₹32,000 • Depreciation: ₹45,000 • Interest on capital: ₹35,000 Operational Details: Actual passengers carried were 85% of the seating capacity. • All buses operated every day of the month. • Each bus made round trip per day. Requried :
[ marks]Total passenger kilometre
[7 marks]Cost per passenger kilometre Page 4 of
[4 marks]