# Download GTU MBA 2018 Summer 9th Sem 4190513 Cost And Management Account Question Paper

1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (AM) SEMESTER 09 - EXAMINATION ? SUMMER-2018

Subject Code: 4190513 Date: 02/05/2018
Subject Name: Cost and Management Account
Time: 2:30 PM To 5:30 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) Define costing & discuss the methods of costing used in cost accounting? 07
Q.1( B) ?Management Accounting serves not only as a tool in management but also provide
techniques of evaluating performance of management.?-Comment. 07
Q.2(A) Distinguish between Cost accounting & Management accounting. 07
Q.2(B) Following information is available for Geet Ltd.
Sales(Rs.) Profit (Rs.)
Period I 1,50,000 4,000
Period II 1,90,000 12,000
Calculate BEP, Fixed Cost, PV Ratio & MOS. 07

OR
Q.2 (B) What are the components of total cost shown in cost-sheet? Give the uses of the cost-
sheet. 07
Q.3(A) What is ?Cost driver?? What is the role of cost driver in tracing cost of product? 07
Q.3 (B) A product is manufactured by passing through three processes A,B and C. In process
C a by- Product is also produced which is then transferred to process D where it is completed.
For the first week in January, the actual data included.
Particular Process-
A
Process-B Process-C Process-D
Normal loss of input (%) 5 10 5 10
Scrap value (Rs. Per
unit)
1.50 2.00 4.00 2.00
Estimated sales value of
by-product (Rs. Per unit)
-- -- 8.00 --
Output (Unit) 5,760 5,100 4,370 --
Output of by-product
(Units)
-- -- 510 450
Direct material (6000
Units) in Rs.
12,000 -- -- --
process (in Rs.)
5,000 9,000 4,000 220
Direct wages (in Rs) 4,000 6,000 2,000 200
Direct expenses(in Rs.) 800 1,680 2,260 151

Budgeted production overhead (based on direct wages) for the week is Rs.30,500.
Budgeted direct wages for the week is Rs. 12,200.
You are required to prepare:
(i) Accounts for processes A,B,C and D.
(ii) Abnormal loss and abnormal gain accounts. 07
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1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (AM) SEMESTER 09 - EXAMINATION ? SUMMER-2018

Subject Code: 4190513 Date: 02/05/2018
Subject Name: Cost and Management Account
Time: 2:30 PM To 5:30 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) Define costing & discuss the methods of costing used in cost accounting? 07
Q.1( B) ?Management Accounting serves not only as a tool in management but also provide
techniques of evaluating performance of management.?-Comment. 07
Q.2(A) Distinguish between Cost accounting & Management accounting. 07
Q.2(B) Following information is available for Geet Ltd.
Sales(Rs.) Profit (Rs.)
Period I 1,50,000 4,000
Period II 1,90,000 12,000
Calculate BEP, Fixed Cost, PV Ratio & MOS. 07

OR
Q.2 (B) What are the components of total cost shown in cost-sheet? Give the uses of the cost-
sheet. 07
Q.3(A) What is ?Cost driver?? What is the role of cost driver in tracing cost of product? 07
Q.3 (B) A product is manufactured by passing through three processes A,B and C. In process
C a by- Product is also produced which is then transferred to process D where it is completed.
For the first week in January, the actual data included.
Particular Process-
A
Process-B Process-C Process-D
Normal loss of input (%) 5 10 5 10
Scrap value (Rs. Per
unit)
1.50 2.00 4.00 2.00
Estimated sales value of
by-product (Rs. Per unit)
-- -- 8.00 --
Output (Unit) 5,760 5,100 4,370 --
Output of by-product
(Units)
-- -- 510 450
Direct material (6000
Units) in Rs.
12,000 -- -- --
process (in Rs.)
5,000 9,000 4,000 220
Direct wages (in Rs) 4,000 6,000 2,000 200
Direct expenses(in Rs.) 800 1,680 2,260 151

Budgeted production overhead (based on direct wages) for the week is Rs.30,500.
Budgeted direct wages for the week is Rs. 12,200.
You are required to prepare:
(i) Accounts for processes A,B,C and D.
(ii) Abnormal loss and abnormal gain accounts. 07
2

OR
Q.3( A) Distinguish between Joint & By product . 07
Q.3( B) The under data is supplied by Thomas travel services, From the following information
calculate fare for passenger KM.
The cost of the Bus Rs. 4,50,000
Insurance charges 3 % p.a.
Annual tax Rs. 4,500
Garage rent Rs. 500 p.m.
Annual repairs Rs. 4,800
Expected life of the bus 5 yrs
Value of scrap at the end of 5 years Rs. 30,000
Route distance 20 km long
Driver?s salary Rs. 550 p.m.
Conductor?s salary Rs. 550 p.m.
Commission to Driver & Conductor (shared
equally)
10% of the takings
Stationery Rs. 250 p.m.
Manager-cum-accountant?s salary Rs. 1750 p.m.
Diesel and oil (for 100 kms) 125

The bus will make 3 rounds trips for carrying on the average 40 passenger?s in each trip.
Assume 15% profit on takings. The bus will work on the average 25 days in a month. 07

Q.4(A) Explain ABC analysis & EOQ techniques of inventory control. 07
Q.4(B) The Queen manufacturing company processed production through two departments
(i) Machining and (ii) Finishing.
Overhead rates are predetermined on the basis of machine hours in the machine department
and the direct labour wages in the finishing department.
The figures for 2016-17 based on which the overhead rates were arrived at are furnished as
below.
Particular Machining Deptt (Rs) Finishing Deptt(Rs)
Direct labour-wages 36,00,000 40,00,000
Direct labour hours 24,00,000 50,00,000
Machine hours 20,00,000 5,00,000

The Cost Sheet for Job Order No.1748 indicates the following:
Particular Machining Deptt Finishing Deptt
Material consumed Rs. 50 Rs. 7
Direct labour wages Rs. 45 Rs. 40
Direct labour hours 24 35
Machine hours 15 5

Assuming that the production order No. 1748 consisted of 10 numbers of part No. P-1865,
prepare a Job cost sheet showing the unit cost of the part. 07

OR

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1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (AM) SEMESTER 09 - EXAMINATION ? SUMMER-2018

Subject Code: 4190513 Date: 02/05/2018
Subject Name: Cost and Management Account
Time: 2:30 PM To 5:30 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) Define costing & discuss the methods of costing used in cost accounting? 07
Q.1( B) ?Management Accounting serves not only as a tool in management but also provide
techniques of evaluating performance of management.?-Comment. 07
Q.2(A) Distinguish between Cost accounting & Management accounting. 07
Q.2(B) Following information is available for Geet Ltd.
Sales(Rs.) Profit (Rs.)
Period I 1,50,000 4,000
Period II 1,90,000 12,000
Calculate BEP, Fixed Cost, PV Ratio & MOS. 07

OR
Q.2 (B) What are the components of total cost shown in cost-sheet? Give the uses of the cost-
sheet. 07
Q.3(A) What is ?Cost driver?? What is the role of cost driver in tracing cost of product? 07
Q.3 (B) A product is manufactured by passing through three processes A,B and C. In process
C a by- Product is also produced which is then transferred to process D where it is completed.
For the first week in January, the actual data included.
Particular Process-
A
Process-B Process-C Process-D
Normal loss of input (%) 5 10 5 10
Scrap value (Rs. Per
unit)
1.50 2.00 4.00 2.00
Estimated sales value of
by-product (Rs. Per unit)
-- -- 8.00 --
Output (Unit) 5,760 5,100 4,370 --
Output of by-product
(Units)
-- -- 510 450
Direct material (6000
Units) in Rs.
12,000 -- -- --
process (in Rs.)
5,000 9,000 4,000 220
Direct wages (in Rs) 4,000 6,000 2,000 200
Direct expenses(in Rs.) 800 1,680 2,260 151

Budgeted production overhead (based on direct wages) for the week is Rs.30,500.
Budgeted direct wages for the week is Rs. 12,200.
You are required to prepare:
(i) Accounts for processes A,B,C and D.
(ii) Abnormal loss and abnormal gain accounts. 07
2

OR
Q.3( A) Distinguish between Joint & By product . 07
Q.3( B) The under data is supplied by Thomas travel services, From the following information
calculate fare for passenger KM.
The cost of the Bus Rs. 4,50,000
Insurance charges 3 % p.a.
Annual tax Rs. 4,500
Garage rent Rs. 500 p.m.
Annual repairs Rs. 4,800
Expected life of the bus 5 yrs
Value of scrap at the end of 5 years Rs. 30,000
Route distance 20 km long
Driver?s salary Rs. 550 p.m.
Conductor?s salary Rs. 550 p.m.
Commission to Driver & Conductor (shared
equally)
10% of the takings
Stationery Rs. 250 p.m.
Manager-cum-accountant?s salary Rs. 1750 p.m.
Diesel and oil (for 100 kms) 125

The bus will make 3 rounds trips for carrying on the average 40 passenger?s in each trip.
Assume 15% profit on takings. The bus will work on the average 25 days in a month. 07

Q.4(A) Explain ABC analysis & EOQ techniques of inventory control. 07
Q.4(B) The Queen manufacturing company processed production through two departments
(i) Machining and (ii) Finishing.
Overhead rates are predetermined on the basis of machine hours in the machine department
and the direct labour wages in the finishing department.
The figures for 2016-17 based on which the overhead rates were arrived at are furnished as
below.
Particular Machining Deptt (Rs) Finishing Deptt(Rs)
Direct labour-wages 36,00,000 40,00,000
Direct labour hours 24,00,000 50,00,000
Machine hours 20,00,000 5,00,000

The Cost Sheet for Job Order No.1748 indicates the following:
Particular Machining Deptt Finishing Deptt
Material consumed Rs. 50 Rs. 7
Direct labour wages Rs. 45 Rs. 40
Direct labour hours 24 35
Machine hours 15 5

Assuming that the production order No. 1748 consisted of 10 numbers of part No. P-1865,
prepare a Job cost sheet showing the unit cost of the part. 07

OR

3

Q.4(A)What is BEP & MOS analysis? How MOS can be improved? Describe with formula. 07
Q.4(B) A product is sold at a price of Rs. 120 per unit and its variable cost is Rs. 80 per unit.
The fixed expenses of the business are Rs. 8,000per year. Calculate (i) BEP in Rs. & units,
(ii) profits made when sales are 240 units, (iii) Sales to be made to earn a net profit of Rs.
5,000 for the year. 07

Q.5(A) Explain in brief ?Normal? & ?Abnormal? loss of Process costing. 07
Q.5(B) Following information is available from the records of Ajay Ltd for the year end 31
st

march 2017. (Rs. In lakhs)
Fixed Expenses
Wages and salaries 9.5
Rent,rates and taxes 6.6
Depreciation 7.4

Semi-Variable Expenses
(At 50% of capacity)
Maintenance & Repairs 3.5
Indirect labour 7.9
Sales department salaries 3.8

Variable Expenses
(At 50% of capacity)

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 (Rs. In lakhs):
50 % capacity 100
60 % capacity 120
75 % capacity 150
90 % capacity 180
100 % capacity 200

Prepare a flexible budget for the year and forecast the profits at 60%, 75%, 90 % and 100 % of
capacity. 07
OR
Q.5(A) What are Cost Accounting standards? How these standard are applicable in Cost
Accounting? 07

FirstRanker.com - FirstRanker's Choice
1

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (AM) SEMESTER 09 - EXAMINATION ? SUMMER-2018

Subject Code: 4190513 Date: 02/05/2018
Subject Name: Cost and Management Account
Time: 2:30 PM To 5:30 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) Define costing & discuss the methods of costing used in cost accounting? 07
Q.1( B) ?Management Accounting serves not only as a tool in management but also provide
techniques of evaluating performance of management.?-Comment. 07
Q.2(A) Distinguish between Cost accounting & Management accounting. 07
Q.2(B) Following information is available for Geet Ltd.
Sales(Rs.) Profit (Rs.)
Period I 1,50,000 4,000
Period II 1,90,000 12,000
Calculate BEP, Fixed Cost, PV Ratio & MOS. 07

OR
Q.2 (B) What are the components of total cost shown in cost-sheet? Give the uses of the cost-
sheet. 07
Q.3(A) What is ?Cost driver?? What is the role of cost driver in tracing cost of product? 07
Q.3 (B) A product is manufactured by passing through three processes A,B and C. In process
C a by- Product is also produced which is then transferred to process D where it is completed.
For the first week in January, the actual data included.
Particular Process-
A
Process-B Process-C Process-D
Normal loss of input (%) 5 10 5 10
Scrap value (Rs. Per
unit)
1.50 2.00 4.00 2.00
Estimated sales value of
by-product (Rs. Per unit)
-- -- 8.00 --
Output (Unit) 5,760 5,100 4,370 --
Output of by-product
(Units)
-- -- 510 450
Direct material (6000
Units) in Rs.
12,000 -- -- --
process (in Rs.)
5,000 9,000 4,000 220
Direct wages (in Rs) 4,000 6,000 2,000 200
Direct expenses(in Rs.) 800 1,680 2,260 151

Budgeted production overhead (based on direct wages) for the week is Rs.30,500.
Budgeted direct wages for the week is Rs. 12,200.
You are required to prepare:
(i) Accounts for processes A,B,C and D.
(ii) Abnormal loss and abnormal gain accounts. 07
2

OR
Q.3( A) Distinguish between Joint & By product . 07
Q.3( B) The under data is supplied by Thomas travel services, From the following information
calculate fare for passenger KM.
The cost of the Bus Rs. 4,50,000
Insurance charges 3 % p.a.
Annual tax Rs. 4,500
Garage rent Rs. 500 p.m.
Annual repairs Rs. 4,800
Expected life of the bus 5 yrs
Value of scrap at the end of 5 years Rs. 30,000
Route distance 20 km long
Driver?s salary Rs. 550 p.m.
Conductor?s salary Rs. 550 p.m.
Commission to Driver & Conductor (shared
equally)
10% of the takings
Stationery Rs. 250 p.m.
Manager-cum-accountant?s salary Rs. 1750 p.m.
Diesel and oil (for 100 kms) 125

The bus will make 3 rounds trips for carrying on the average 40 passenger?s in each trip.
Assume 15% profit on takings. The bus will work on the average 25 days in a month. 07

Q.4(A) Explain ABC analysis & EOQ techniques of inventory control. 07
Q.4(B) The Queen manufacturing company processed production through two departments
(i) Machining and (ii) Finishing.
Overhead rates are predetermined on the basis of machine hours in the machine department
and the direct labour wages in the finishing department.
The figures for 2016-17 based on which the overhead rates were arrived at are furnished as
below.
Particular Machining Deptt (Rs) Finishing Deptt(Rs)
Direct labour-wages 36,00,000 40,00,000
Direct labour hours 24,00,000 50,00,000
Machine hours 20,00,000 5,00,000

The Cost Sheet for Job Order No.1748 indicates the following:
Particular Machining Deptt Finishing Deptt
Material consumed Rs. 50 Rs. 7
Direct labour wages Rs. 45 Rs. 40
Direct labour hours 24 35
Machine hours 15 5

Assuming that the production order No. 1748 consisted of 10 numbers of part No. P-1865,
prepare a Job cost sheet showing the unit cost of the part. 07

OR

3

Q.4(A)What is BEP & MOS analysis? How MOS can be improved? Describe with formula. 07
Q.4(B) A product is sold at a price of Rs. 120 per unit and its variable cost is Rs. 80 per unit.
The fixed expenses of the business are Rs. 8,000per year. Calculate (i) BEP in Rs. & units,
(ii) profits made when sales are 240 units, (iii) Sales to be made to earn a net profit of Rs.
5,000 for the year. 07

Q.5(A) Explain in brief ?Normal? & ?Abnormal? loss of Process costing. 07
Q.5(B) Following information is available from the records of Ajay Ltd for the year end 31
st

march 2017. (Rs. In lakhs)
Fixed Expenses
Wages and salaries 9.5
Rent,rates and taxes 6.6
Depreciation 7.4

Semi-Variable Expenses
(At 50% of capacity)
Maintenance & Repairs 3.5
Indirect labour 7.9
Sales department salaries 3.8

Variable Expenses
(At 50% of capacity)

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 (Rs. In lakhs):
50 % capacity 100
60 % capacity 120
75 % capacity 150
90 % capacity 180
100 % capacity 200

Prepare a flexible budget for the year and forecast the profits at 60%, 75%, 90 % and 100 % of
capacity. 07
OR
Q.5(A) What are Cost Accounting standards? How these standard are applicable in Cost
Accounting? 07

4

Q.5(B) The standard material input required for 1,000 kgs. Of a finished product are given
below.
Material Quantity (Kgs) St. Rate per Kg. (Rs.)
P 450 20
Q 400 40
R 250 60
Total 1,100 --
Standard loss 100 --
Standard output 1,000 --

Actual production in a period was 20,000 kg. Of finished product for which the actual
quantities of material used and the prices paid therefore were as under:
Material Quantity (Kgs) Purchase price per Kg. (Rs.)
P 10,000 19
Q 8,500 42
R 4,500 65

Calculate:
(i) Material cost variance;
(ii) Material price variance;
(iii) Material usage variance ; and
(iv) Material yield variance . 07

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