Cost And Management Accounting Question Paper of 3rd Semester BBA Download Previous Years Question Paper 5

Roll No.

Total No. of Questions : 07

BBA (Sem.–3rd)

COST AND MANAGEMENT ACCOUNTING

Subject Code : BB-303

Paper ID : [C0215]

Time : 3 Hrs.

INSTRUCTION TO CANDIDATES :

1. Section –A, is Compulsory.

2. Attempt any four questions from Section-B.

Section –A

Ql) a) What is indirect material? Give an example.

b) What is Economic order Quantity?

c) Write two limitations of Piece Rate System.

d) Explain margin of safety.

e) How would you calculate material usage variance?

f) What is Fixed Budgeting?

g) What is standard costing?

h) Define Cost centres.

i) Differentiate between Costing and Cost Accounting.

j) What are semi-variable costs? Give two examples.

Section -B

Q2) What are the objectives of cost Accounting? Discuss the procedure of

installation of a costing system in an organisation.

Q3) What are the objectives of material control? Discuss various methods of material control.

Q4) Why is it necessary to reconcile the profits as shown by the Cost and Financial Accounts? Explain the reasons for the difference in profits shown by the two set of accounts.

Q5) Differentiate between a budget, budgeting and budgetary control. Discuss

various pre-requisites of implementing a budgetary control system in an

organisation.

Q6) A company produces 24,000 units. The cost sheet gives the following information:

                                                               

                                                               Rs.

Direct material                                       1,20,000

Direct wages                                          84,000

Variable overheads                                48,000

Semi-variable overheads                        28,000

Fixed overheads                                     80,000

Total cost                                               3,60,000

The product is sold at Rs. 20 per unit.

The management proposes to increase the production by 3,000 units for sale

in the foreign market. It is estimated that the semi-variable overheads will

increase by Rs. 1,000. But the product will be sold at Rs 14 per unit in the

foreign market. However no additional capital expenditure will be incurred.

The management seeks your advice as a cost accountant. What will be your

advice to the management of the company?

Q7) Accompany has furnished the following information in relation to the production of 1,000 units of compact discs manufactured by it during 2010:

                                                     

                                                                                            Rs.

Cost of materials                                                                1,00,000

Direct wages                                                                       70,000

Cost of power and consumable stores (20% fixed)            15,000

Factory indirect wages (40% fixed)                                    20,000

Cost of lighting in the factory (fixed)                                  10,000

Office expenses (fixed)                                                       30,000

Selling expenses (70% variable)                                         50,000

Depreciation of plant under straight line method                10,000

The entire output was sold at Rs. 350 per unit.

For the year 201 1, it is estimated that the production will be increased by 50% by utilising the spare capacity and the rates for materials and direct wages will increase by l0% and 20o/o respectively.

Prepare Cost sheet for the year 2010 showing the cost per unit and a statement showing estimated cost and profit for the year 2011, assuming that all the goods produced would be sold at a price of Rs. 340 per unit.