Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Winter 2nd Sem 2820001 Cost And Management Accounting Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 2 ? EXAMINATION ? WINTER 2018
Subject Code:2820001 Date:24/12/2018
Subject Name: Cost and Management Accounting
Time: 02:30 AM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1(a) Multi choice Questions: 6
1. ______is tool to determine the cost of products or service.
A. Cost B. Cost Accounting
C. Costing D. Cost Accountancy
2.
According to decision needs of the management, what changes?
A. Cost object B. Cost statement
C. Cost Account D Cost Accounting
3.
Which costing method is part of specific order costing?
A. Contract Costing B. By- Product Costing
C. Service Costing D. Joint Costing
4.
If P/V Ratio of any company is increasing, it indicates?
A. Variable cost is decreasing B. Sales Price per unit is increasing
C. Sales is increasing D. All of the above
5.
The value of a befit sacrificed in favour of an alternative course of action is called?
A. Marginal Cost B. Incremental Cost
C. Direct Cost D. Opportunity Cost
6.
Patient-Day is final cost unit for ?
A. Operation Costing B. Operating Costing
C. Single Costing D. Contract Costing
Q.1 (b) Explain the terms:
1. Cost Unit
2. Abnormal Gain
3. Joint Product
4. PV Ratio
04
Q.1 (c) Describe the difficulties in installing the costing system. 04
Q.2 (a) Explain the format of Motor Transport costing. 07
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Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 2 ? EXAMINATION ? WINTER 2018
Subject Code:2820001 Date:24/12/2018
Subject Name: Cost and Management Accounting
Time: 02:30 AM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1(a) Multi choice Questions: 6
1. ______is tool to determine the cost of products or service.
A. Cost B. Cost Accounting
C. Costing D. Cost Accountancy
2.
According to decision needs of the management, what changes?
A. Cost object B. Cost statement
C. Cost Account D Cost Accounting
3.
Which costing method is part of specific order costing?
A. Contract Costing B. By- Product Costing
C. Service Costing D. Joint Costing
4.
If P/V Ratio of any company is increasing, it indicates?
A. Variable cost is decreasing B. Sales Price per unit is increasing
C. Sales is increasing D. All of the above
5.
The value of a befit sacrificed in favour of an alternative course of action is called?
A. Marginal Cost B. Incremental Cost
C. Direct Cost D. Opportunity Cost
6.
Patient-Day is final cost unit for ?
A. Operation Costing B. Operating Costing
C. Single Costing D. Contract Costing
Q.1 (b) Explain the terms:
1. Cost Unit
2. Abnormal Gain
3. Joint Product
4. PV Ratio
04
Q.1 (c) Describe the difficulties in installing the costing system. 04
Q.2 (a) Explain the format of Motor Transport costing. 07
2
(b) ABC ltd. furnished the below details related to activities:
Activity Cost Driver Capacity Cost
Power KWH 50,000 KWH
Rs.2,00,0000
Quality No. of Inspections
10,0000
Inspections
Rs. 3,00,000
Company manufactures three products A, B and C. Following shows the
consumption details:
Product KWH Quality
A 10,000 3500
B 20,000 2500
C 15,000 3000
1. Compute the cost allocated to each product from each activity.
2.Calculate the cost of unused capacity for each activity.
07
OR
(b) A Truck starts with a load of 10 tons of goods from station P. It unloads 4 tons
at station Q and rest of the goods at station R. it reaches back directly to station
P after getting reloaded with 8 tons of goods at station R. The distances between
P to Q, Q to R, and then R to P are 40 Kms, 60 Kms, and 80 Kms respectively.
Compute absolute Ton Kms and Commercial Ton Kms.
07
Q.3 (a) Explain the assumptions in Break even Analysis. 07
(b) Find out below Material Variances for Zero Ltd. from the information:
1. Material Cost variance
2. Material Price variance
3. Material Mix variance
MATERIALS Standard Qty. Actual Qty.
A 60 kg at Rs. 5per
kg
70 kg. at Rs. 5 per kg
B 50 kg at Rs. 6 per
kg.
40 kg at Rs. 6.20 per
kg
110 kg 110 kg
07
OR
Q.3 (a) Who is Cost Auditor ? Explain the powers and duties of cost auditor 07
(b) Work Out the estimated pre-separation costs per ton of By- Products Y and Z
from the following data: Costs of Manufacture before Separation: Rs. 2560000.
Main Product is X. There are two By- Products Y and Z whose normal selling
prices are as under:
Sales Price of Y : Rs. 500 per ton
Sales Price of Z : Rs. 800 per ton
Selling and Distribution expenses have been estimated to be 25% of selling Price
and the Net profit is expected to be 10% of selling price. Costs to manufacture
each ton after separation from the main product are: Rs. 95 for by- product Y,
Rs. 145 for by- product Z. Assume equal weighting for Y and Z.
07
Q.4 (a) Explain various types of Overhead with examples. 07
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Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 2 ? EXAMINATION ? WINTER 2018
Subject Code:2820001 Date:24/12/2018
Subject Name: Cost and Management Accounting
Time: 02:30 AM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1(a) Multi choice Questions: 6
1. ______is tool to determine the cost of products or service.
A. Cost B. Cost Accounting
C. Costing D. Cost Accountancy
2.
According to decision needs of the management, what changes?
A. Cost object B. Cost statement
C. Cost Account D Cost Accounting
3.
Which costing method is part of specific order costing?
A. Contract Costing B. By- Product Costing
C. Service Costing D. Joint Costing
4.
If P/V Ratio of any company is increasing, it indicates?
A. Variable cost is decreasing B. Sales Price per unit is increasing
C. Sales is increasing D. All of the above
5.
The value of a befit sacrificed in favour of an alternative course of action is called?
A. Marginal Cost B. Incremental Cost
C. Direct Cost D. Opportunity Cost
6.
Patient-Day is final cost unit for ?
A. Operation Costing B. Operating Costing
C. Single Costing D. Contract Costing
Q.1 (b) Explain the terms:
1. Cost Unit
2. Abnormal Gain
3. Joint Product
4. PV Ratio
04
Q.1 (c) Describe the difficulties in installing the costing system. 04
Q.2 (a) Explain the format of Motor Transport costing. 07
2
(b) ABC ltd. furnished the below details related to activities:
Activity Cost Driver Capacity Cost
Power KWH 50,000 KWH
Rs.2,00,0000
Quality No. of Inspections
10,0000
Inspections
Rs. 3,00,000
Company manufactures three products A, B and C. Following shows the
consumption details:
Product KWH Quality
A 10,000 3500
B 20,000 2500
C 15,000 3000
1. Compute the cost allocated to each product from each activity.
2.Calculate the cost of unused capacity for each activity.
07
OR
(b) A Truck starts with a load of 10 tons of goods from station P. It unloads 4 tons
at station Q and rest of the goods at station R. it reaches back directly to station
P after getting reloaded with 8 tons of goods at station R. The distances between
P to Q, Q to R, and then R to P are 40 Kms, 60 Kms, and 80 Kms respectively.
Compute absolute Ton Kms and Commercial Ton Kms.
07
Q.3 (a) Explain the assumptions in Break even Analysis. 07
(b) Find out below Material Variances for Zero Ltd. from the information:
1. Material Cost variance
2. Material Price variance
3. Material Mix variance
MATERIALS Standard Qty. Actual Qty.
A 60 kg at Rs. 5per
kg
70 kg. at Rs. 5 per kg
B 50 kg at Rs. 6 per
kg.
40 kg at Rs. 6.20 per
kg
110 kg 110 kg
07
OR
Q.3 (a) Who is Cost Auditor ? Explain the powers and duties of cost auditor 07
(b) Work Out the estimated pre-separation costs per ton of By- Products Y and Z
from the following data: Costs of Manufacture before Separation: Rs. 2560000.
Main Product is X. There are two By- Products Y and Z whose normal selling
prices are as under:
Sales Price of Y : Rs. 500 per ton
Sales Price of Z : Rs. 800 per ton
Selling and Distribution expenses have been estimated to be 25% of selling Price
and the Net profit is expected to be 10% of selling price. Costs to manufacture
each ton after separation from the main product are: Rs. 95 for by- product Y,
Rs. 145 for by- product Z. Assume equal weighting for Y and Z.
07
Q.4 (a) Explain various types of Overhead with examples. 07
3
(b) A Company had incurred fixed expenses of Rs.2,25,000 with sales of
Rs.7,50,000 and earned a profit of Rs. 1,50,000 during the first half -year. In the
second half year, it suffered a loss of Rs. 75,000. Calculate for the first half year:
1. Profit- Volume Ratio
2. Break even point
3. Margin of safety
07
OR
Q.4 (a) Differentiate Cost Accounting and Financial Accounting in detail. 07
(b) Thugs Ltd.
Estimated Sales:
Month Units
Jan 6000
Feb 7200
Mar 8400
Apr 9600
May 7200
June 8400
At the end of every month value of closing stock are calculated as 1/3rd of the
estimated sales for next 2 months. Prepare Production Budget. (January-
April)
07
Q.5 Badhaai Ho Ltd.
The Output of each processes is transferred to the next process at cost on
completion. The stocks which consists of Raw Materials are valued at cost per
unit of the preceding process. Prepare Process Cost Account Showing the Cost
of output and Cost per unit at each stage of Manufacture.
Particulars Process A (Rs.) Process B (Rs.) Process C (Rs.)
Direct Wages 12800 24000 58500
Machine Expenses 7200 6000 7200
Factory Exp. 4000 4500 4800
Raw Material
Consumed
48000 units *** Units *** Units
Production (Gross) 74000 *** ***
Wastage 2000 3000 1000
Op. Stock (Raw
Material)
*** 8000 33000
Cl. Stock (Raw
Material)
*** 2000 11000
14
OR
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1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 2 ? EXAMINATION ? WINTER 2018
Subject Code:2820001 Date:24/12/2018
Subject Name: Cost and Management Accounting
Time: 02:30 AM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1(a) Multi choice Questions: 6
1. ______is tool to determine the cost of products or service.
A. Cost B. Cost Accounting
C. Costing D. Cost Accountancy
2.
According to decision needs of the management, what changes?
A. Cost object B. Cost statement
C. Cost Account D Cost Accounting
3.
Which costing method is part of specific order costing?
A. Contract Costing B. By- Product Costing
C. Service Costing D. Joint Costing
4.
If P/V Ratio of any company is increasing, it indicates?
A. Variable cost is decreasing B. Sales Price per unit is increasing
C. Sales is increasing D. All of the above
5.
The value of a befit sacrificed in favour of an alternative course of action is called?
A. Marginal Cost B. Incremental Cost
C. Direct Cost D. Opportunity Cost
6.
Patient-Day is final cost unit for ?
A. Operation Costing B. Operating Costing
C. Single Costing D. Contract Costing
Q.1 (b) Explain the terms:
1. Cost Unit
2. Abnormal Gain
3. Joint Product
4. PV Ratio
04
Q.1 (c) Describe the difficulties in installing the costing system. 04
Q.2 (a) Explain the format of Motor Transport costing. 07
2
(b) ABC ltd. furnished the below details related to activities:
Activity Cost Driver Capacity Cost
Power KWH 50,000 KWH
Rs.2,00,0000
Quality No. of Inspections
10,0000
Inspections
Rs. 3,00,000
Company manufactures three products A, B and C. Following shows the
consumption details:
Product KWH Quality
A 10,000 3500
B 20,000 2500
C 15,000 3000
1. Compute the cost allocated to each product from each activity.
2.Calculate the cost of unused capacity for each activity.
07
OR
(b) A Truck starts with a load of 10 tons of goods from station P. It unloads 4 tons
at station Q and rest of the goods at station R. it reaches back directly to station
P after getting reloaded with 8 tons of goods at station R. The distances between
P to Q, Q to R, and then R to P are 40 Kms, 60 Kms, and 80 Kms respectively.
Compute absolute Ton Kms and Commercial Ton Kms.
07
Q.3 (a) Explain the assumptions in Break even Analysis. 07
(b) Find out below Material Variances for Zero Ltd. from the information:
1. Material Cost variance
2. Material Price variance
3. Material Mix variance
MATERIALS Standard Qty. Actual Qty.
A 60 kg at Rs. 5per
kg
70 kg. at Rs. 5 per kg
B 50 kg at Rs. 6 per
kg.
40 kg at Rs. 6.20 per
kg
110 kg 110 kg
07
OR
Q.3 (a) Who is Cost Auditor ? Explain the powers and duties of cost auditor 07
(b) Work Out the estimated pre-separation costs per ton of By- Products Y and Z
from the following data: Costs of Manufacture before Separation: Rs. 2560000.
Main Product is X. There are two By- Products Y and Z whose normal selling
prices are as under:
Sales Price of Y : Rs. 500 per ton
Sales Price of Z : Rs. 800 per ton
Selling and Distribution expenses have been estimated to be 25% of selling Price
and the Net profit is expected to be 10% of selling price. Costs to manufacture
each ton after separation from the main product are: Rs. 95 for by- product Y,
Rs. 145 for by- product Z. Assume equal weighting for Y and Z.
07
Q.4 (a) Explain various types of Overhead with examples. 07
3
(b) A Company had incurred fixed expenses of Rs.2,25,000 with sales of
Rs.7,50,000 and earned a profit of Rs. 1,50,000 during the first half -year. In the
second half year, it suffered a loss of Rs. 75,000. Calculate for the first half year:
1. Profit- Volume Ratio
2. Break even point
3. Margin of safety
07
OR
Q.4 (a) Differentiate Cost Accounting and Financial Accounting in detail. 07
(b) Thugs Ltd.
Estimated Sales:
Month Units
Jan 6000
Feb 7200
Mar 8400
Apr 9600
May 7200
June 8400
At the end of every month value of closing stock are calculated as 1/3rd of the
estimated sales for next 2 months. Prepare Production Budget. (January-
April)
07
Q.5 Badhaai Ho Ltd.
The Output of each processes is transferred to the next process at cost on
completion. The stocks which consists of Raw Materials are valued at cost per
unit of the preceding process. Prepare Process Cost Account Showing the Cost
of output and Cost per unit at each stage of Manufacture.
Particulars Process A (Rs.) Process B (Rs.) Process C (Rs.)
Direct Wages 12800 24000 58500
Machine Expenses 7200 6000 7200
Factory Exp. 4000 4500 4800
Raw Material
Consumed
48000 units *** Units *** Units
Production (Gross) 74000 *** ***
Wastage 2000 3000 1000
Op. Stock (Raw
Material)
*** 8000 33000
Cl. Stock (Raw
Material)
*** 2000 11000
14
OR
4
Q.5 Andhadhoon Ltd. manufactures and sells a special type of product K. Presently,
the company manufactures 8000 unit, which is 80% of capacity. Present cost
structures per unit of product K is below:
Direct Materials Rs. 200
Direct Labour Rs. 150
Factory Overhead Rs. 120 (50% Fixed)
Selling Overhead Rs. 80 (50% Fixed)
The Company estimates to produce the same number of units of the product
during the following year and anticipates that fixed cost will go up by 10% while
the rates of direct materials and direct labour will increase by 8% and 6%
respectively. The company has no intention to increaser its present sales prices
of Rs. 580 per unit. Under these circumstances, company obtained and offer to
supply 1000 units of the product to a special customer.
Calculate the Minimum Sales Price per unit of an additional order of 1000 units
to be quoted to customer if the company desires to earn an overall profit of Rs.
2,50,000.
14
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This post was last modified on 19 February 2020