# Download GTU MBA 2019 Summer 2nd Sem 2820001 Cost And Management Accounting Cma Question Paper

Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 2nd Sem 2820001 Cost And Management Accounting Cma Previous Question Paper

1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 2 ? EXAMINATION ? SUMMER 2019

Subject Code: 2820001 Date:10/05/2019
Subject Name: Cost and Management Accounting (CMA)
Time: 10:30 AM To 01:30 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) Answer the following :- 6

Which of the following is a part of office cost ?
1.
A. Salary B. Factory Rent
C. Direct expenses D. Selling expenses
If variable cost increases then P/V ratio at same level of sales?
2.
A. Increases B. Decreases
C. No change D None of the above
Which of the following is part of operating costing?
3.
A. Steel industry B. Cement industry
C. Transportation D. None of the above

If actual loss is greater than normal loss then it is called
4.
A. Normal loss B. Abnormal gain
C. None of the above? D. Abnormal loss

Budget at different level of output is known as
5.
A. Fixed budget B. Standard Budget
C. Flexible Budget D. None of the above
In make or buy decision which of the following cost is ignored?
6.
A. Variable cost B. None of the above
C. Both fixed & Variable D. Fixed Cost

Q.1 (b) Explain the following: 04
1) Job Costing 2) Direct Cost
3) Period Cost 4) Standard Cost
Q.1 (c) The sales of a company are @ Rs. 200 per unit = Rs. 20,00,000 04
Variable cost 12,00,000 Fixed cost 6,00,000
The capacity of the factory 15,000 units
Determine the BEP. How much profit is the company making?

Q.2 (a) Difference between cost and financial accounting 07
FirstRanker.com - FirstRanker's Choice
1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 2 ? EXAMINATION ? SUMMER 2019

Subject Code: 2820001 Date:10/05/2019
Subject Name: Cost and Management Accounting (CMA)
Time: 10:30 AM To 01:30 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) Answer the following :- 6

Which of the following is a part of office cost ?
1.
A. Salary B. Factory Rent
C. Direct expenses D. Selling expenses
If variable cost increases then P/V ratio at same level of sales?
2.
A. Increases B. Decreases
C. No change D None of the above
Which of the following is part of operating costing?
3.
A. Steel industry B. Cement industry
C. Transportation D. None of the above

If actual loss is greater than normal loss then it is called
4.
A. Normal loss B. Abnormal gain
C. None of the above? D. Abnormal loss

Budget at different level of output is known as
5.
A. Fixed budget B. Standard Budget
C. Flexible Budget D. None of the above
In make or buy decision which of the following cost is ignored?
6.
A. Variable cost B. None of the above
C. Both fixed & Variable D. Fixed Cost

Q.1 (b) Explain the following: 04
1) Job Costing 2) Direct Cost
3) Period Cost 4) Standard Cost
Q.1 (c) The sales of a company are @ Rs. 200 per unit = Rs. 20,00,000 04
Variable cost 12,00,000 Fixed cost 6,00,000
The capacity of the factory 15,000 units
Determine the BEP. How much profit is the company making?

Q.2 (a) Difference between cost and financial accounting 07
2
(b) Shanker has been promised a contract to run a tourist car on a 20 km. long mute for the
chief executive of a multinational firm. He buys a car costing Rs.1,50,000. The
annual cost of insurance and taxes are Rs. 4,500 and Rs.900 respectively. He has
to pay Rs.500 per month for a garage where he keeps the car when it is not in use.
The annual repair costs are estimated at Rs.4,000. The car is estimated to have a life of
10 years, at the end of which the scrap value is likely to be Rs.50,000.

He hires a driver who is to be paid Rs.300 per month plus 10% of the
takings as commission. Other incidental expenses are estimated at Rs.200
per month. Petrol and oil will cost Rs.100 per 100 kms. The car will make
4 round trips each day. Assuming a profit of 15% on takings is desired
and that the car will be on the road for 25 days on an average per month
what should he charge per round-trip? 07
OR

(b) The following information has been obtained form the records of ABC Co. Ltd. for the
month of January, 2014:

Cost of raw materials on 1/01/2014 30,000
Purchase of raw materials during the month 4,50,000
Wages paid 2,30,000
Cost of work-in-progress on 1/01/2014 12,000
Cost of raw materials on 30 /01/2014 25,000
Cost of work-in-progress on 30 /01/2014 15,000
Cost of stock of finished goods on 1 /01/2014 60,000
Cost of stock of finished goods on 30 /01/2014 55,000
Sales 9,00,000
Prepare: (i) Cost sheet showing the cost of production of goods
manufactured, and (ii) Statement showing the cost of sales and the profit
earned. 07

Q.3 (a) Explain the characteristics of process costing 07
(b) In a manufacturing process, the following standards apply: 07

Standard Price: Raw material A Rs.1 per kg.
Raw materials B Rs. 5 per kg.
Standard Mix 75% A; 25% B (by weight)
Standard Yield : 90%
In a period the actual costs, usage and output were as follows:

Used: 4,400 kgs. of A costing Rs. 4,650
1,600 kgs. of B costing Rs. 7,850
Output: 5,670 kgs. of products

OR
Q.3 (a) Explain any one method used in costing of ?Joint product?. 07
(b) Calculate the machine hour rate from the following: ` 07
Cost of machine 18,000 Cost of installation 2,000 , Scrap value after 10
years 2,000, Rates and rent for a quarter for the shop 600, General
FirstRanker.com - FirstRanker's Choice
1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 2 ? EXAMINATION ? SUMMER 2019

Subject Code: 2820001 Date:10/05/2019
Subject Name: Cost and Management Accounting (CMA)
Time: 10:30 AM To 01:30 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) Answer the following :- 6

Which of the following is a part of office cost ?
1.
A. Salary B. Factory Rent
C. Direct expenses D. Selling expenses
If variable cost increases then P/V ratio at same level of sales?
2.
A. Increases B. Decreases
C. No change D None of the above
Which of the following is part of operating costing?
3.
A. Steel industry B. Cement industry
C. Transportation D. None of the above

If actual loss is greater than normal loss then it is called
4.
A. Normal loss B. Abnormal gain
C. None of the above? D. Abnormal loss

Budget at different level of output is known as
5.
A. Fixed budget B. Standard Budget
C. Flexible Budget D. None of the above
In make or buy decision which of the following cost is ignored?
6.
A. Variable cost B. None of the above
C. Both fixed & Variable D. Fixed Cost

Q.1 (b) Explain the following: 04
1) Job Costing 2) Direct Cost
3) Period Cost 4) Standard Cost
Q.1 (c) The sales of a company are @ Rs. 200 per unit = Rs. 20,00,000 04
Variable cost 12,00,000 Fixed cost 6,00,000
The capacity of the factory 15,000 units
Determine the BEP. How much profit is the company making?

Q.2 (a) Difference between cost and financial accounting 07
2
(b) Shanker has been promised a contract to run a tourist car on a 20 km. long mute for the
chief executive of a multinational firm. He buys a car costing Rs.1,50,000. The
annual cost of insurance and taxes are Rs. 4,500 and Rs.900 respectively. He has
to pay Rs.500 per month for a garage where he keeps the car when it is not in use.
The annual repair costs are estimated at Rs.4,000. The car is estimated to have a life of
10 years, at the end of which the scrap value is likely to be Rs.50,000.

He hires a driver who is to be paid Rs.300 per month plus 10% of the
takings as commission. Other incidental expenses are estimated at Rs.200
per month. Petrol and oil will cost Rs.100 per 100 kms. The car will make
4 round trips each day. Assuming a profit of 15% on takings is desired
and that the car will be on the road for 25 days on an average per month
what should he charge per round-trip? 07
OR

(b) The following information has been obtained form the records of ABC Co. Ltd. for the
month of January, 2014:

Cost of raw materials on 1/01/2014 30,000
Purchase of raw materials during the month 4,50,000
Wages paid 2,30,000
Cost of work-in-progress on 1/01/2014 12,000
Cost of raw materials on 30 /01/2014 25,000
Cost of work-in-progress on 30 /01/2014 15,000
Cost of stock of finished goods on 1 /01/2014 60,000
Cost of stock of finished goods on 30 /01/2014 55,000
Sales 9,00,000
Prepare: (i) Cost sheet showing the cost of production of goods
manufactured, and (ii) Statement showing the cost of sales and the profit
earned. 07

Q.3 (a) Explain the characteristics of process costing 07
(b) In a manufacturing process, the following standards apply: 07

Standard Price: Raw material A Rs.1 per kg.
Raw materials B Rs. 5 per kg.
Standard Mix 75% A; 25% B (by weight)
Standard Yield : 90%
In a period the actual costs, usage and output were as follows:

Used: 4,400 kgs. of A costing Rs. 4,650
1,600 kgs. of B costing Rs. 7,850
Output: 5,670 kgs. of products

OR
Q.3 (a) Explain any one method used in costing of ?Joint product?. 07
(b) Calculate the machine hour rate from the following: ` 07
Cost of machine 18,000 Cost of installation 2,000 , Scrap value after 10
years 2,000, Rates and rent for a quarter for the shop 600, General
3
lighting 200 p.m. Shop supervisor?s salary 6,000 per quarter Insurance
premium for a machine 120 p.a. Estimated repair 200 p.a. Power 2 units
per hour @ Rs.150 per 100 units Estimated working hours p.a. 2,000.
The machine occupies 1/4th of the total area of the shop. The supervisor
is expected to devote 1/6th of his time for supervising the machine.
General lighting expenses are to be apportioned on the basis of floor area

Q.4 (a) What is CVP Analysis? How does it help management ? 07
(b) The cost accountant of ABC Manufacturing attended a workshop on activity-based
costing and was impressed by the results. After consulting with the production
personnel, he prepared the following information on cost drivers and the
estimated volume for each driver.
A B C
Units produced 25,000 15,000 5,000
Direct materials Cost
Per Unit in Rs.
40 30 55
Direct labour Rs. 15 15 15

Cost driver Cost driver volume
A B C
Number of setups 125 75 50 250
Machine Hours 2500 1500 2000 6000
Direct labour hours 25000 15000 5000 45000
Number of
Inspection
50 25 25 100

The cost accountant also determined how much overhead costs were incurred
in each of the four activities as follows:
Machining:
Setup 1,50,000
Machining 7,50,000
Total of Machining Overhead Cost 9,00,000 Assembly
:
Assembly 360,000
Inspection 90,000
Total of Assembly Overhead Cost 4,50,000
Required:
1. Determine the cost driver rate for each activity cost pool.
2. Use the activity-based costing method to determine the unit cost for
each product. 07
OR
Q.4 (a) Explain advantages and limitations of standard costing 07
(b) Sales are Rs. 1,50,000, producing a profit of Rs.4,000 in period I. Sales are Rs.1,90,000,
producing a profit of Rs.12,000 in period II. Determine the BEP. 07

Q.5 The product of a company passes through 3 distinct process. The following information is
obtained from the accounts for the month ending January 31, 2018. 14

Particulars Process ? A Process ? B Process ? C
Direct Material 7800 5940 8886
FirstRanker.com - FirstRanker's Choice
1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 2 ? EXAMINATION ? SUMMER 2019

Subject Code: 2820001 Date:10/05/2019
Subject Name: Cost and Management Accounting (CMA)
Time: 10:30 AM To 01:30 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) Answer the following :- 6

Which of the following is a part of office cost ?
1.
A. Salary B. Factory Rent
C. Direct expenses D. Selling expenses
If variable cost increases then P/V ratio at same level of sales?
2.
A. Increases B. Decreases
C. No change D None of the above
Which of the following is part of operating costing?
3.
A. Steel industry B. Cement industry
C. Transportation D. None of the above

If actual loss is greater than normal loss then it is called
4.
A. Normal loss B. Abnormal gain
C. None of the above? D. Abnormal loss

Budget at different level of output is known as
5.
A. Fixed budget B. Standard Budget
C. Flexible Budget D. None of the above
In make or buy decision which of the following cost is ignored?
6.
A. Variable cost B. None of the above
C. Both fixed & Variable D. Fixed Cost

Q.1 (b) Explain the following: 04
1) Job Costing 2) Direct Cost
3) Period Cost 4) Standard Cost
Q.1 (c) The sales of a company are @ Rs. 200 per unit = Rs. 20,00,000 04
Variable cost 12,00,000 Fixed cost 6,00,000
The capacity of the factory 15,000 units
Determine the BEP. How much profit is the company making?

Q.2 (a) Difference between cost and financial accounting 07
2
(b) Shanker has been promised a contract to run a tourist car on a 20 km. long mute for the
chief executive of a multinational firm. He buys a car costing Rs.1,50,000. The
annual cost of insurance and taxes are Rs. 4,500 and Rs.900 respectively. He has
to pay Rs.500 per month for a garage where he keeps the car when it is not in use.
The annual repair costs are estimated at Rs.4,000. The car is estimated to have a life of
10 years, at the end of which the scrap value is likely to be Rs.50,000.

He hires a driver who is to be paid Rs.300 per month plus 10% of the
takings as commission. Other incidental expenses are estimated at Rs.200
per month. Petrol and oil will cost Rs.100 per 100 kms. The car will make
4 round trips each day. Assuming a profit of 15% on takings is desired
and that the car will be on the road for 25 days on an average per month
what should he charge per round-trip? 07
OR

(b) The following information has been obtained form the records of ABC Co. Ltd. for the
month of January, 2014:

Cost of raw materials on 1/01/2014 30,000
Purchase of raw materials during the month 4,50,000
Wages paid 2,30,000
Cost of work-in-progress on 1/01/2014 12,000
Cost of raw materials on 30 /01/2014 25,000
Cost of work-in-progress on 30 /01/2014 15,000
Cost of stock of finished goods on 1 /01/2014 60,000
Cost of stock of finished goods on 30 /01/2014 55,000
Sales 9,00,000
Prepare: (i) Cost sheet showing the cost of production of goods
manufactured, and (ii) Statement showing the cost of sales and the profit
earned. 07

Q.3 (a) Explain the characteristics of process costing 07
(b) In a manufacturing process, the following standards apply: 07

Standard Price: Raw material A Rs.1 per kg.
Raw materials B Rs. 5 per kg.
Standard Mix 75% A; 25% B (by weight)
Standard Yield : 90%
In a period the actual costs, usage and output were as follows:

Used: 4,400 kgs. of A costing Rs. 4,650
1,600 kgs. of B costing Rs. 7,850
Output: 5,670 kgs. of products

OR
Q.3 (a) Explain any one method used in costing of ?Joint product?. 07
(b) Calculate the machine hour rate from the following: ` 07
Cost of machine 18,000 Cost of installation 2,000 , Scrap value after 10
years 2,000, Rates and rent for a quarter for the shop 600, General
3
lighting 200 p.m. Shop supervisor?s salary 6,000 per quarter Insurance
premium for a machine 120 p.a. Estimated repair 200 p.a. Power 2 units
per hour @ Rs.150 per 100 units Estimated working hours p.a. 2,000.
The machine occupies 1/4th of the total area of the shop. The supervisor
is expected to devote 1/6th of his time for supervising the machine.
General lighting expenses are to be apportioned on the basis of floor area

Q.4 (a) What is CVP Analysis? How does it help management ? 07
(b) The cost accountant of ABC Manufacturing attended a workshop on activity-based
costing and was impressed by the results. After consulting with the production
personnel, he prepared the following information on cost drivers and the
estimated volume for each driver.
A B C
Units produced 25,000 15,000 5,000
Direct materials Cost
Per Unit in Rs.
40 30 55
Direct labour Rs. 15 15 15

Cost driver Cost driver volume
A B C
Number of setups 125 75 50 250
Machine Hours 2500 1500 2000 6000
Direct labour hours 25000 15000 5000 45000
Number of
Inspection
50 25 25 100

The cost accountant also determined how much overhead costs were incurred
in each of the four activities as follows:
Machining:
Setup 1,50,000
Machining 7,50,000
Total of Machining Overhead Cost 9,00,000 Assembly
:
Assembly 360,000
Inspection 90,000
Total of Assembly Overhead Cost 4,50,000
Required:
1. Determine the cost driver rate for each activity cost pool.
2. Use the activity-based costing method to determine the unit cost for
each product. 07
OR
Q.4 (a) Explain advantages and limitations of standard costing 07
(b) Sales are Rs. 1,50,000, producing a profit of Rs.4,000 in period I. Sales are Rs.1,90,000,
producing a profit of Rs.12,000 in period II. Determine the BEP. 07

Q.5 The product of a company passes through 3 distinct process. The following information is
obtained from the accounts for the month ending January 31, 2018. 14

Particulars Process ? A Process ? B Process ? C
Direct Material 7800 5940 8886
4
Direct Wages 6000 9000 12000
3000 units @ Rs. 3 each were introduced to process ? I. There was no
stock of materials or work in progress. The output of each process passes
directly to the next process and finally to finished stock A/c. The

Process Output Normal Loss in % Realisable Value of Scrap
Process 1 2,850 5% 2
Process 2 2,520 10% 4
Process 3 2,250 15% 5
Prepare Process Cost Account, Normal Loss Account and Abnormal Gain or
Loss Account
OR
Q.5 Following information is available from the records of Jay Ltd. for the year end 31st March
2018. 14
Fixed Expenses in lakhs are as follows:-
Wages and salaries 9.5 , Rent, rates and taxes 6.6, Depreciation 7.4
Semi-Variable Expenses (at 50% of capacity) in lakhs are:- Maintenance
and repairs 3.5, Indirect labour 7.9,
Sales department salaries 3.8 , Sundry administrative expenses 2.8
Variable Expenses (at 50% of capacity) in lakhs are:- Materials
21.7 , Labour 20.4, Other expenses 7.9
Assuming that the fixed expenses remain constant for all levels of
production, semi-variable expenses remain constant between 45% and
65% of capacity increasing by 10% between 65% and 80% and by 20%
between 80% and 100%.
Sales at various levels are : (lakhs)
50% capacity 100
60% ? 120
75% ? 150
90% ? 180
100% ? 200
Prepare a flexible budget for the year and forecast the profits at 60%, 75%,
90% and 100% of capacity.

*************
FirstRanker.com - FirstRanker's Choice