Download GTU MBA 2018 Summer 3rd Sem 820001 Cost And Management Accounting Cma Question Paper

Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Summer 3rd Sem 820001 Cost And Management Accounting Cma Previous Question Paper

1
Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER?II ? EXAMINATION ? SUMMER 2018

Subject Code: 820001 Date:29/05/2018
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) Explain the advantages of and objections against Cost Accounting. 07
(b) Explain in detail the classification of costs according to Variability and
Controllability.
07

Q.2 (a) Mr. Manish furnishes the following data relating to the manufacture of X-
standard products during the month of April:
Raw Materials Consumed Rs. 15,000
Direct Labour Charges Rs. 9,000
Machine Hours Worked 900 hours
Machine Hour Rate Rs. 5
Selling Overheads 50 paise per unit
Units Produced 17,100 units
Units Sold 16,000 @ Rs. 4 per unit
You are required to prepare a cost sheet from the above, showing
(i) Cost per unit
(ii) Profit per unit sold
07
(b) What do you understand by Job Order Costing? Under what conditions, it is
suitable?
07
OR
(b) What do you mean by Activity Based Costing? Explain different stages involved
in ABC system of costing?
07

Q.3 (a) Define by products and joint products, what are the distinctions between them?
Give examples.
07
(b) The cost records show the following expenses of manufacturing 200 units of
Product X in a process:
Material Rs. 4000/-
Labour Rs. 1500/-
The standard normal wastage in production is 10% and it can be sold in the
market at Rs.15 per unit. The actual production is 150 units which is attributable
to gross carelessness of the workers. Prepare Process A/c and Abnormal Wastage
A/c.
07
OR
Q.3 (a) What do you mean by Operating Costing? Explain characteristics, features and
types of cost units used in operating costing.
07
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1
Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER?II ? EXAMINATION ? SUMMER 2018

Subject Code: 820001 Date:29/05/2018
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) Explain the advantages of and objections against Cost Accounting. 07
(b) Explain in detail the classification of costs according to Variability and
Controllability.
07

Q.2 (a) Mr. Manish furnishes the following data relating to the manufacture of X-
standard products during the month of April:
Raw Materials Consumed Rs. 15,000
Direct Labour Charges Rs. 9,000
Machine Hours Worked 900 hours
Machine Hour Rate Rs. 5
Selling Overheads 50 paise per unit
Units Produced 17,100 units
Units Sold 16,000 @ Rs. 4 per unit
You are required to prepare a cost sheet from the above, showing
(i) Cost per unit
(ii) Profit per unit sold
07
(b) What do you understand by Job Order Costing? Under what conditions, it is
suitable?
07
OR
(b) What do you mean by Activity Based Costing? Explain different stages involved
in ABC system of costing?
07

Q.3 (a) Define by products and joint products, what are the distinctions between them?
Give examples.
07
(b) The cost records show the following expenses of manufacturing 200 units of
Product X in a process:
Material Rs. 4000/-
Labour Rs. 1500/-
The standard normal wastage in production is 10% and it can be sold in the
market at Rs.15 per unit. The actual production is 150 units which is attributable
to gross carelessness of the workers. Prepare Process A/c and Abnormal Wastage
A/c.
07
OR
Q.3 (a) What do you mean by Operating Costing? Explain characteristics, features and
types of cost units used in operating costing.
07
2
(b) Kamlesh Company Ltd. is divided into four department A, B, & C production
department and D is service department. The actual costs for October, 2009 are as
follows:
Rent Rs. 1000
Repairs to plants Rs. 600
Depreciation of plant Rs. 450
Light Rs. 100
Supervision Rs. 1500
Fire insurance stock Rs. 500
Power Rs. 900
Employees state insurance contribution Rs. 150
The following information is available in respect of four departments.
Departments A B C D
Area sq ft. 1500 1100 900 500
No. of employees 20 15 10 5
Total wages Rs. 6000 4000 3000 2000
Value of Plant Rs. 24000 18000 12000 6000
Value of stock Rs. 15000 9000 6000 -
Apportion the cost to the various departments by preparing overhead distribution
chart.
07

Q.4 (a) Define decision-making. Explain the various steps involved in the decision-
making process.
07
(b) Shah Industries manufactures small capacity motors. The cost break-up of a
motor is as under:
Material Rs. 50
Labour Rs. 80
Variable Overheads 75% of labour cost
Fixed overheads of the company amount to Rs. 2,40,000 p.a. The sales price of
the motor is Rs. 230 each.
(i) Determine the number of motors that have to be manufactured and sold in a
year in order to break even.
(ii) How many motors to be made and sold to make a profit of Rs. 1,00,000.
(iii) If the sale price is reduced by Rs. 15 each, how many motors have to be sold
to break even.
07
OR
Q.4 (a) Explain the concept of transfer price. Elaborate in detail the different techniques
available to work out the transfer price.
07
(b) From the following details, which product would be recommended if time is the
limiting factor?
Particulars Product A Product B
Direct Material Per Unit Rs. 24 Rs. 14
Direct Labour @ Rs. 2 per hour Rs. 20 Rs. 30
Variable Overheads (% of labour cost) 200% 300%
Selling Price Per Unit Rs. 150 Rs. 200

07

Q.5 (a) Define Budget. Elaborate in detail the necessary features of budgets. 07
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1
Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER?II ? EXAMINATION ? SUMMER 2018

Subject Code: 820001 Date:29/05/2018
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) Explain the advantages of and objections against Cost Accounting. 07
(b) Explain in detail the classification of costs according to Variability and
Controllability.
07

Q.2 (a) Mr. Manish furnishes the following data relating to the manufacture of X-
standard products during the month of April:
Raw Materials Consumed Rs. 15,000
Direct Labour Charges Rs. 9,000
Machine Hours Worked 900 hours
Machine Hour Rate Rs. 5
Selling Overheads 50 paise per unit
Units Produced 17,100 units
Units Sold 16,000 @ Rs. 4 per unit
You are required to prepare a cost sheet from the above, showing
(i) Cost per unit
(ii) Profit per unit sold
07
(b) What do you understand by Job Order Costing? Under what conditions, it is
suitable?
07
OR
(b) What do you mean by Activity Based Costing? Explain different stages involved
in ABC system of costing?
07

Q.3 (a) Define by products and joint products, what are the distinctions between them?
Give examples.
07
(b) The cost records show the following expenses of manufacturing 200 units of
Product X in a process:
Material Rs. 4000/-
Labour Rs. 1500/-
The standard normal wastage in production is 10% and it can be sold in the
market at Rs.15 per unit. The actual production is 150 units which is attributable
to gross carelessness of the workers. Prepare Process A/c and Abnormal Wastage
A/c.
07
OR
Q.3 (a) What do you mean by Operating Costing? Explain characteristics, features and
types of cost units used in operating costing.
07
2
(b) Kamlesh Company Ltd. is divided into four department A, B, & C production
department and D is service department. The actual costs for October, 2009 are as
follows:
Rent Rs. 1000
Repairs to plants Rs. 600
Depreciation of plant Rs. 450
Light Rs. 100
Supervision Rs. 1500
Fire insurance stock Rs. 500
Power Rs. 900
Employees state insurance contribution Rs. 150
The following information is available in respect of four departments.
Departments A B C D
Area sq ft. 1500 1100 900 500
No. of employees 20 15 10 5
Total wages Rs. 6000 4000 3000 2000
Value of Plant Rs. 24000 18000 12000 6000
Value of stock Rs. 15000 9000 6000 -
Apportion the cost to the various departments by preparing overhead distribution
chart.
07

Q.4 (a) Define decision-making. Explain the various steps involved in the decision-
making process.
07
(b) Shah Industries manufactures small capacity motors. The cost break-up of a
motor is as under:
Material Rs. 50
Labour Rs. 80
Variable Overheads 75% of labour cost
Fixed overheads of the company amount to Rs. 2,40,000 p.a. The sales price of
the motor is Rs. 230 each.
(i) Determine the number of motors that have to be manufactured and sold in a
year in order to break even.
(ii) How many motors to be made and sold to make a profit of Rs. 1,00,000.
(iii) If the sale price is reduced by Rs. 15 each, how many motors have to be sold
to break even.
07
OR
Q.4 (a) Explain the concept of transfer price. Elaborate in detail the different techniques
available to work out the transfer price.
07
(b) From the following details, which product would be recommended if time is the
limiting factor?
Particulars Product A Product B
Direct Material Per Unit Rs. 24 Rs. 14
Direct Labour @ Rs. 2 per hour Rs. 20 Rs. 30
Variable Overheads (% of labour cost) 200% 300%
Selling Price Per Unit Rs. 150 Rs. 200

07

Q.5 (a) Define Budget. Elaborate in detail the necessary features of budgets. 07
3
(b) Find out labour rate variance, labour efficiency variance and labour cost variance
using the following data:
Standard: 48 hours @ Rs. 3 per hour
Actual: 50 hours @ Rs. 3.50 per hour
07
OR

Q.5 (a) Explain in detail the advantages of standard costing system. 07
(b) A department attaints a sale of Rs. 6,00,000 at 80% of its normal capacity and its
expenses are given below:
Expenses
Rs. Selling
Costs
Rs.
Office Salaries 90,000 Salaries 8% of sales
General Expenses 2% of sales Travelling Expenses 2% of sales
Depreciation 7,500 Sales Office Expenses 1% of sales
Rates & Taxes 8,750 General Expenses 1% of sales
The distribution costs are: Wages ? Rs. 15,000, Rent ? 1% of sales, and other
expenses ? 4% of sales.