Cost Accounting — Winter 2025

Discuss distinction between Cost and Financial accounting.

Define cost accounting. Discuss the importance of Cost Accounting.

Define Material Cost. Discuss different Techniques of Inventory Control.

Calculate the earnings of worker Xand Yunder Taylor’s Differential Piece Rate System from the following particulars: Standard time: One hour for 100 units Normal rate: Rs. 2 per hour Differential wage rate to be applied: (1) 80% of the piece rate below standard (2) 120% of piece rate at or above standard In a day of 8 hours Xproduced 700 units and Yproduced 900 units. Also compute the wage cost per unit for both the workers.

Afirm has the following items in its inventory. Prepare ABC classification of inventory from the below details. Item No. of Units in inventory Cost price per unit (Rs.) 4 2500 7.20 5 5000 2.72 6 3200 3.20 7 2800 2.20 Total 20000 -

What is Labour Turnover? Discuss different methods of measurement of labour turnover.

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Differentiate between Cost Allocation and Cost Apportionment.

Difference between Process costing and Job costing.

Explain in brief with example: 1.Accounting of normal losses 2.Accounting of abnormal gain 3.Accounting of joint product and by products.

In a factory 20.000 units of Product Xwere manufactured in the month of September 2018. From the following figures obtained from the costing records, prepare a Cost Sheet showing the total cost and cost per unit: Direct Material Consumed 2,00,000 Direct Wages 1,60,000 Other Direct Expenses 40,000 Factory Overheads 80,000 Office & Administrative Overheads 60,000 Selling & Distribution Overheads 60,000

The annual inventory requirement of a firm is 30,000 units. The ordering cost is Rs 150 per order. Its carrying cost per unit is Rs 1.20. Suppose the ordering quantity is as follows: (1) 30,000 units (2) 3,000 units (4) 15,000 units (4) 1,500 units (5) 6,000 units (6) 750 units Determine the following on the basis of above information: 1. 1.Ordering cost 2. 2.Carrying cost 3. 3.Average inventory 4. 4.Economic ordering quantity.

Explain characteristics of contract costing in detail. Page 2 of

ABC Construction Ltd. has obtained a contract for construction of a bridge. The value of the contract is Rs.12 Lakh and the work commenced on 1st October,2020. The following details are shown in the books for the year ended 30th September,2021. Particular Amount Particular Amount (Rs.) (Rs.) Plant 60,000 Wages 2,800 purchases Accrued as on 30.9.2021 Wages paid 3,40,000 Materials at 4,000 site as on 30.9.2021 Material 3,36,000 Direct 1,200 issued to site Expenses accrued as on 30.9.2021 Direct 8,000 Work not 14,000 Expenses yet certified at cost General 32,000 Cash 6,00,000 Overheads received being 80% of work certified Life of plant purchased is 5 years and scrap value is nil. Prepare the contract account for the year ended 30th September,2021.

Discuss the feature of operating costing in detail.

Atransport company has been given a 40 km long route to run 5 buses. The cost of each bus is 6,50,000 Rs. The buses will make 3 round trips per day carrying on an average 80 percent passengers of their seating capacity. The seating capacity of each bus is 40 passengers. The buses will run on an average 25 days in a month. The other information for the year 2023-24 are given below: Garage rent - 4,000 Rs per month Annual repairs and maintenance - 22,500 Rs each bus Salaries of 5 drivers - 3,000 Rs each per month Wages of 5 conductors - 1,200 Rs each per month Manager's salary - 7,500 Rs per month Road tax, permit fee, etc. - 5,000 Rs for a quarter Office expenses - 2,000 Rs per month Cost of diesel per litre – 33 Rs Kilometre run per litre – 6 km Annual depreciation - 15% of cost Annual Insurance - 3% of cost You are required to calculate the bus fare to be charged from each passenger. Page 3 of