Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2016 Winter 2nd Sem 2820001 Cost And Management Accounting Cma Previous Question Paper

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY

MBA ? SEMESTER 2 ? EXAMINATION ? WINTER 2016

Subject Code: 2820001 Date: 20/10/2016

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.

No.

06

Q.1

(a)

Cost accounting is an information system developed for:

1.

A. Shareholder B. Government

C. Management D. Financial

Institutions

2.

Contribution minus fixed costs is

A. Variable cost B. marginal

cost

C. unit cost D Profit

3.

An increase in the variable cost:

A. Reduces contribution B. Increase in

PV ratio

C. Increases margin of safety D. None of the

above

4.

Another name for direct expenses:

A. Period cost B. Prime cost

C. Variable cost D. Chargeable

cost

5.

An input of 2500 kgs. of material introduced into the process and the expected

normal loss is 8% and if the actual output from the process is 2150 kgs., the

abnormal loss is ____________ kgs.

A. 200 B. 150

C. 250 D. 300

6.

BEP Means ______________

A. Profit B. Loss

C. Profit & Loss D. No Profit &

No Loss

Q.1 (b) 1. Define Cost Accounting

2. List down the steps in Costing Procedure

3. Define Normal and Abnormal Costs

4. Draw the chart for BEP

04

Q.1 (c) Write note on various elements of Direct cost 04

Q.2 (a) Discuss Benefits and Limitations of Cost Accounting. 07

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Page 1 of 4

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY

MBA ? SEMESTER 2 ? EXAMINATION ? WINTER 2016

Subject Code: 2820001 Date: 20/10/2016

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.

No.

06

Q.1

(a)

Cost accounting is an information system developed for:

1.

A. Shareholder B. Government

C. Management D. Financial

Institutions

2.

Contribution minus fixed costs is

A. Variable cost B. marginal

cost

C. unit cost D Profit

3.

An increase in the variable cost:

A. Reduces contribution B. Increase in

PV ratio

C. Increases margin of safety D. None of the

above

4.

Another name for direct expenses:

A. Period cost B. Prime cost

C. Variable cost D. Chargeable

cost

5.

An input of 2500 kgs. of material introduced into the process and the expected

normal loss is 8% and if the actual output from the process is 2150 kgs., the

abnormal loss is ____________ kgs.

A. 200 B. 150

C. 250 D. 300

6.

BEP Means ______________

A. Profit B. Loss

C. Profit & Loss D. No Profit &

No Loss

Q.1 (b) 1. Define Cost Accounting

2. List down the steps in Costing Procedure

3. Define Normal and Abnormal Costs

4. Draw the chart for BEP

04

Q.1 (c) Write note on various elements of Direct cost 04

Q.2 (a) Discuss Benefits and Limitations of Cost Accounting. 07

Page 2 of 4

(b) The following particular relate to a new machine purchased:

Purchased price of machine Rs. 400,000

Installation expenses Rs. 100,000

Rent per quarter Rs. 15000

General lighting for the total area Rs. 1000 p.m

Foremen salary Rs. 30,000 p.a.

Insurance premium for the machine RS. 3000 p.a.

Estimated repairs for the machines Rs. 5000 p.a.

Estimated consumable store Rs. 4000 p.a.

Power ? 2 units per hour at Rs. 50 per 100 Units

Estimated life of the machine is 10 years and the estimated value

at the end of the 10 year is Rs. 100,000. The machine is expected

to run 20000 hours in its life time. The machine occupies 25% of

the total area. The foremen devotes 1/6 of his time for the

machine. Calculate the machine hour rate for the machine.

07

OR

(b) The following direct costs were incurred on Job No. 415 of

Standard Radio Company.

Materials Rs. 6010

Wages:

Deptt: A ? 60 hours @ Rs. 30 per hr

B ? 40 hours @ Rs. 20 per hr

C ? 20 hours @ Rs. 50 per hr

Overhead for these three departments were estimated as follow:

Variable overheads:

Deptt: A ? Rs 15000 for 1500 labour hours

B ? Rs. 4000 for 200 labour hours

C ? RS. 12000 for 300 labour hours

Fixed overheads:

Estimated at Rs. 40000 for 2000 normal working hours.

You are required to calculate the cost of Job 415 and calculate the

price to give profit of 25% on selling price.

07

Q.3 (a) Discuss the various characteristics of Activity Based Costing. 07

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Page 1 of 4

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY

MBA ? SEMESTER 2 ? EXAMINATION ? WINTER 2016

Subject Code: 2820001 Date: 20/10/2016

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.

No.

06

Q.1

(a)

Cost accounting is an information system developed for:

1.

A. Shareholder B. Government

C. Management D. Financial

Institutions

2.

Contribution minus fixed costs is

A. Variable cost B. marginal

cost

C. unit cost D Profit

3.

An increase in the variable cost:

A. Reduces contribution B. Increase in

PV ratio

C. Increases margin of safety D. None of the

above

4.

Another name for direct expenses:

A. Period cost B. Prime cost

C. Variable cost D. Chargeable

cost

5.

An input of 2500 kgs. of material introduced into the process and the expected

normal loss is 8% and if the actual output from the process is 2150 kgs., the

abnormal loss is ____________ kgs.

A. 200 B. 150

C. 250 D. 300

6.

BEP Means ______________

A. Profit B. Loss

C. Profit & Loss D. No Profit &

No Loss

Q.1 (b) 1. Define Cost Accounting

2. List down the steps in Costing Procedure

3. Define Normal and Abnormal Costs

4. Draw the chart for BEP

04

Q.1 (c) Write note on various elements of Direct cost 04

Q.2 (a) Discuss Benefits and Limitations of Cost Accounting. 07

Page 2 of 4

(b) The following particular relate to a new machine purchased:

Purchased price of machine Rs. 400,000

Installation expenses Rs. 100,000

Rent per quarter Rs. 15000

General lighting for the total area Rs. 1000 p.m

Foremen salary Rs. 30,000 p.a.

Insurance premium for the machine RS. 3000 p.a.

Estimated repairs for the machines Rs. 5000 p.a.

Estimated consumable store Rs. 4000 p.a.

Power ? 2 units per hour at Rs. 50 per 100 Units

Estimated life of the machine is 10 years and the estimated value

at the end of the 10 year is Rs. 100,000. The machine is expected

to run 20000 hours in its life time. The machine occupies 25% of

the total area. The foremen devotes 1/6 of his time for the

machine. Calculate the machine hour rate for the machine.

07

OR

(b) The following direct costs were incurred on Job No. 415 of

Standard Radio Company.

Materials Rs. 6010

Wages:

Deptt: A ? 60 hours @ Rs. 30 per hr

B ? 40 hours @ Rs. 20 per hr

C ? 20 hours @ Rs. 50 per hr

Overhead for these three departments were estimated as follow:

Variable overheads:

Deptt: A ? Rs 15000 for 1500 labour hours

B ? Rs. 4000 for 200 labour hours

C ? RS. 12000 for 300 labour hours

Fixed overheads:

Estimated at Rs. 40000 for 2000 normal working hours.

You are required to calculate the cost of Job 415 and calculate the

price to give profit of 25% on selling price.

07

Q.3 (a) Discuss the various characteristics of Activity Based Costing. 07

Page 3 of 4

(b) A product passes through three processes A, B, and C. the normal

wastages of each process is as follows.

Process Wastages (%) Sold for (per unit)

A 3 Rs. 0.25

B 5 Rs. 0.50

C 8 Rs.1

10,000 units were issued to process A in the beginning of October

2015 at a cost of Rs. 1 per unit. The other expenses were as

follows:

Process A Process B Process C

Sundry

Materials

Rs. 1000 Rs 1500 Rs 500

Labour Rs 5000 Rs 8000 Rs 6500

Direct

Expenses

Rs1050 Rs 1188 Rs 2009

Actual Output 9500 units 9100 units 8100 units

Prepare the process accounts, Abnormal wastages and Abnormal

Gain Accounts.

07

OR

Q.3 (a) Describe the important advantages of Standard costing. 07

(b) From the following data relating to two different vehicles A and

B, compute the cost per running mile:

Vehicle A Vehicle B

Mileage run (annual) Rs. 15000 Rs. 6000

Cost of vehicle Rs. 25000 Rs. 15000

Road License (Annual) Rs. 750 Rs. 750

Insurance (Annual) Rs. 700 Rs. 400

Garage rent (Annual) Rs. 600 Rs. 500

Supervision and Salary Rs. 1200 Rs. 1200

Driver?s wages per hour Rs. 3 Rs. 3

Cost of Fuel per gallon Rs. 3 Rs. 3

Mile run per gallon 20 miles 15 miles

Repairs and maintenance per

mile

Rs. 1.65 Rs. 2

Tyre allocation per mile Rs. 0.80 Rs. 0.60

Estimated life of Vehicle 100,000 miles 75000 miles

Charge interest at 5% p.a. on cost of vehicles. The vehicles run 20

miles per hour on an average.

07

Q.4 (a) Differentiate the Process Costing and Job Costing 07

(b) X, Y and Z are the three joint products in a factory. Their joint

cost is Rs. 30,000. Quantities produced are as follows:

X 1000

Y 400

Z 600

On the basis of technical evaluation, points allotted to X, Y and Z

products are 3.2%, 5% and 8% respectively. Apportion the joint

cost.

07

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Page 1 of 4

Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY

MBA ? SEMESTER 2 ? EXAMINATION ? WINTER 2016

Subject Code: 2820001 Date: 20/10/2016

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.

No.

06

Q.1

(a)

Cost accounting is an information system developed for:

1.

A. Shareholder B. Government

C. Management D. Financial

Institutions

2.

Contribution minus fixed costs is

A. Variable cost B. marginal

cost

C. unit cost D Profit

3.

An increase in the variable cost:

A. Reduces contribution B. Increase in

PV ratio

C. Increases margin of safety D. None of the

above

4.

Another name for direct expenses:

A. Period cost B. Prime cost

C. Variable cost D. Chargeable

cost

5.

An input of 2500 kgs. of material introduced into the process and the expected

normal loss is 8% and if the actual output from the process is 2150 kgs., the

abnormal loss is ____________ kgs.

A. 200 B. 150

C. 250 D. 300

6.

BEP Means ______________

A. Profit B. Loss

C. Profit & Loss D. No Profit &

No Loss

Q.1 (b) 1. Define Cost Accounting

2. List down the steps in Costing Procedure

3. Define Normal and Abnormal Costs

4. Draw the chart for BEP

04

Q.1 (c) Write note on various elements of Direct cost 04

Q.2 (a) Discuss Benefits and Limitations of Cost Accounting. 07

Page 2 of 4

(b) The following particular relate to a new machine purchased:

Purchased price of machine Rs. 400,000

Installation expenses Rs. 100,000

Rent per quarter Rs. 15000

General lighting for the total area Rs. 1000 p.m

Foremen salary Rs. 30,000 p.a.

Insurance premium for the machine RS. 3000 p.a.

Estimated repairs for the machines Rs. 5000 p.a.

Estimated consumable store Rs. 4000 p.a.

Power ? 2 units per hour at Rs. 50 per 100 Units

Estimated life of the machine is 10 years and the estimated value

at the end of the 10 year is Rs. 100,000. The machine is expected

to run 20000 hours in its life time. The machine occupies 25% of

the total area. The foremen devotes 1/6 of his time for the

machine. Calculate the machine hour rate for the machine.

07

OR

(b) The following direct costs were incurred on Job No. 415 of

Standard Radio Company.

Materials Rs. 6010

Wages:

Deptt: A ? 60 hours @ Rs. 30 per hr

B ? 40 hours @ Rs. 20 per hr

C ? 20 hours @ Rs. 50 per hr

Overhead for these three departments were estimated as follow:

Variable overheads:

Deptt: A ? Rs 15000 for 1500 labour hours

B ? Rs. 4000 for 200 labour hours

C ? RS. 12000 for 300 labour hours

Fixed overheads:

Estimated at Rs. 40000 for 2000 normal working hours.

You are required to calculate the cost of Job 415 and calculate the

price to give profit of 25% on selling price.

07

Q.3 (a) Discuss the various characteristics of Activity Based Costing. 07

Page 3 of 4

(b) A product passes through three processes A, B, and C. the normal

wastages of each process is as follows.

Process Wastages (%) Sold for (per unit)

A 3 Rs. 0.25

B 5 Rs. 0.50

C 8 Rs.1

10,000 units were issued to process A in the beginning of October

2015 at a cost of Rs. 1 per unit. The other expenses were as

follows:

Process A Process B Process C

Sundry

Materials

Rs. 1000 Rs 1500 Rs 500

Labour Rs 5000 Rs 8000 Rs 6500

Direct

Expenses

Rs1050 Rs 1188 Rs 2009

Actual Output 9500 units 9100 units 8100 units

Prepare the process accounts, Abnormal wastages and Abnormal

Gain Accounts.

07

OR

Q.3 (a) Describe the important advantages of Standard costing. 07

(b) From the following data relating to two different vehicles A and

B, compute the cost per running mile:

Vehicle A Vehicle B

Mileage run (annual) Rs. 15000 Rs. 6000

Cost of vehicle Rs. 25000 Rs. 15000

Road License (Annual) Rs. 750 Rs. 750

Insurance (Annual) Rs. 700 Rs. 400

Garage rent (Annual) Rs. 600 Rs. 500

Supervision and Salary Rs. 1200 Rs. 1200

Driver?s wages per hour Rs. 3 Rs. 3

Cost of Fuel per gallon Rs. 3 Rs. 3

Mile run per gallon 20 miles 15 miles

Repairs and maintenance per

mile

Rs. 1.65 Rs. 2

Tyre allocation per mile Rs. 0.80 Rs. 0.60

Estimated life of Vehicle 100,000 miles 75000 miles

Charge interest at 5% p.a. on cost of vehicles. The vehicles run 20

miles per hour on an average.

07

Q.4 (a) Differentiate the Process Costing and Job Costing 07

(b) X, Y and Z are the three joint products in a factory. Their joint

cost is Rs. 30,000. Quantities produced are as follows:

X 1000

Y 400

Z 600

On the basis of technical evaluation, points allotted to X, Y and Z

products are 3.2%, 5% and 8% respectively. Apportion the joint

cost.

07

Page 4 of 4

OR

Q.4 (a) Discuss the various characteristics of marginal costing. 07

(b) The following information is given:

Sales Rs. 200,000

Variable Rs. 120,000

Fixed Cost Rs. 30,000

Calculate: (A) Break Even Point

(B) New BEP if Variable cost increases by 10%

Show both the results in a single graph.

07

Q.5 The following information is available from the cost records of

Novel & Co. for the month of March.

Material Purchased 20000 units Rs. 88000

Material consumed Rs. 19000

Actual wages paid for 4950 hours Rs. 24750

Units produced 1800 units

Standard rates and pieces are:

1. Direct Material rate is Rs. 4.00 per unit, standard input

is 10 numbers for one unit.

2. Direct labour rate is Rs. 4 per hour, standard

requirement is 2.5 hours per unit.

You are required to compute all material and labour variances for

the month of March.

14

OR

Q.5 A department of Tek India Company attains sales of Rs. 600000 at

80% of its normal capacity. Its expenses are give below:

Office Salaries Rs. 90000

General Expenses 2% of sales

Depreciation Rs.7500

Rent and Rates Rs.8750

Selling Costs:

Salaries 8% of Sales

Travelling expenses 2% of sales

Sales office 1% of sales

General Expenses 1% of sales

Distribution Costs:

Wages Rs. 15000

Rent 1% of sales

Other Expenses 4% of sales

Draw up flexible Administration, selling & Distribution costs

budget, operating at 90%, 100% and 110& of normal capacity.

14

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This post was last modified on 19 February 2020