Seat No.: Enrolment No.
GUJARAT TECHNOLOGICAL UNIVERSITY
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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:
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- Attempt all questions.
- Make suitable assumptions wherever necessary.
- Figures to the right indicate full marks.
Q.1(a) Multi choice Questions: 6
- is tool to determine the cost of products or service.
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A. Cost B. Cost Accounting
C. Costing D. Cost Accountancy - According to decision needs of the management, what changes?
A. Cost object B. Cost statement
C. Cost Account D Cost Accounting - Which costing method is part of specific order costing?
A. Contract Costing B. By- Product Costing
C. Service Costing D. Joint Costing - If P/V Ratio of any company is increasing, it indicates?
A. Variable cost is decreasing B. Sales Price per unit is increasing--- Content provided by FirstRanker.com ---
C. Sales is increasing D. All of the above - The value of a benefit sacrificed in favour of an alternative course of action is called?
A. Marginal Cost B. Incremental Cost
C. Direct Cost D. Opportunity Cost - Patient-Day is final cost unit for ?
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A. Operation Costing B. Operating Costing
C. Single Costing D. Contract Costing
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Q.1 (b) Explain the terms: 04
- Cost Unit
- Abnormal Gain
- Joint Product
- PV Ratio
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Q.1 (c) Describe the difficulties in installing the costing system. 04
Q.2 (a) Explain the format of Motor Transport costing. 07
Q.3 (a) Company manufactures three products A, B and C. Following shows the consumption details:
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| Product | KWH | Quality |
|---|---|---|
| A | 10,000 | 3500 |
| B | 20,000 | 2500 |
| C | 15,000 | 3000 |
- Compute the cost allocated to each product from each activity.
- Calculate the cost of unused capacity for each activity.
OR
Q.3 (a) 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 PtoQ, QtoR, 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 (b) Explain the assumptions in Break even Analysis. 07
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Q.4 (a) Find out below Material Variances for Zero Ltd. from the information:
- Material Cost variance
- Material Price variance
- Material Mix variance
| MATERIALS | Standard Qty. | Actual Qty. |
|---|---|---|
| A | 60 kg at Rs. 5 per 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 |
OR
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Q.4 (a) Who is Cost Auditor ? Explain the powers and duties of cost auditor 07
Q.4 (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
Q.4 (a) Thugs Ltd. Estimated Sales: 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:
- Profit- Volume Ratio
- Break even point
- Margin of safety
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OR
Q.4 (a) Differentiate Cost Accounting and Financial Accounting in detail. 07
Q.4 (b) Estimated Sales:
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| 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. 14
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 | ||
| Production (Gross) | |||
| Wastage | 2000 | 3000 | 1000 |
| Op. Stock (Raw Material) | 8000 | 33000 | |
| Cl. Stock (Raw Material) | 2000 | 11000 |
OR
Q.5 The company manufactures 8000 unit, which is 80% of capacity. Present cost structures per unit of product K is below:
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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.
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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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