Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2016 Summer 2nd Sem 820001 Cost And Management Accounting Cma Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER? II ? EXAMINATION ? SUMMER 2016
Subject Code: 820001 Date: 25/05/2016
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.1 (a) Define the terms: Cost Accounting and Management Accounting. ?Management
Accounting is an extension of managerial aspects of Cost Accounting?. Discuss.
07
(b) Baldha Ltd. Produces a Chemical A of which standard material cost is:
40% of Material P at Rs. 4000 Per Metric Tonne
60% of Material Q at Rs. 6000 Per Metric Tonne
Standard Loss of 10% is expected in production. During January 2008, 171 metric tonnes
of A were produced from the use of 90 metric tonnes of material P at Rs. 3,600 per
metric tonne and 110 metric tonnes of material Q at Rs. 6,800 per metric tonne. Calculate
the following material Variances for the month of January 2008 indicating their nature,
i.e. favorable or adverse.
i. Material Price Variance
ii. Material Mixture Variance
iii. Material Yield Variance
iv. Material total Cost Variance
07
Q.2 (a) Following details are available:
Sales Total Cost
PERIOD 1 Rs 39,000 Rs 34,800
PERIOD 2 Rs 43,000 Rs 37,600
You are required to determine:
i. Contribution of the firm
ii. Annual Variable and Fixed Cots
iii. Margin of Safety as Percentage of Sales
iv. Break-Even Sales
(b) Write Short notes on:
i. Production order
ii. Job Costing
iii. Economic Batch Quantity
07
OR
(b) Site three Examples where direct expense is not included in the cost of production.
Justify why these expenses are not regarded as direct expenses.
07
Q.3 (a) The Costs records show the following expenses of manufacturing units of Product
X in a process:
Material Rs 4000
Labour 1500
Overheads 500
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 in gross carelessness
of the workers.
Show the treatment of wastage in the process A/c and prepare the abnormal wastage A/c.
07
(b) Enumerate the importance provisions of cost audit (report) rules and describe in what way
they are different from financial auditor?s report
07
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1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER? II ? EXAMINATION ? SUMMER 2016
Subject Code: 820001 Date: 25/05/2016
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.1 (a) Define the terms: Cost Accounting and Management Accounting. ?Management
Accounting is an extension of managerial aspects of Cost Accounting?. Discuss.
07
(b) Baldha Ltd. Produces a Chemical A of which standard material cost is:
40% of Material P at Rs. 4000 Per Metric Tonne
60% of Material Q at Rs. 6000 Per Metric Tonne
Standard Loss of 10% is expected in production. During January 2008, 171 metric tonnes
of A were produced from the use of 90 metric tonnes of material P at Rs. 3,600 per
metric tonne and 110 metric tonnes of material Q at Rs. 6,800 per metric tonne. Calculate
the following material Variances for the month of January 2008 indicating their nature,
i.e. favorable or adverse.
i. Material Price Variance
ii. Material Mixture Variance
iii. Material Yield Variance
iv. Material total Cost Variance
07
Q.2 (a) Following details are available:
Sales Total Cost
PERIOD 1 Rs 39,000 Rs 34,800
PERIOD 2 Rs 43,000 Rs 37,600
You are required to determine:
i. Contribution of the firm
ii. Annual Variable and Fixed Cots
iii. Margin of Safety as Percentage of Sales
iv. Break-Even Sales
(b) Write Short notes on:
i. Production order
ii. Job Costing
iii. Economic Batch Quantity
07
OR
(b) Site three Examples where direct expense is not included in the cost of production.
Justify why these expenses are not regarded as direct expenses.
07
Q.3 (a) The Costs records show the following expenses of manufacturing units of Product
X in a process:
Material Rs 4000
Labour 1500
Overheads 500
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 in gross carelessness
of the workers.
Show the treatment of wastage in the process A/c and prepare the abnormal wastage A/c.
07
(b) Enumerate the importance provisions of cost audit (report) rules and describe in what way
they are different from financial auditor?s report
07
2
OR
Q.3 (a) A factory uses job costing. The following cost data is obtained from its books for the year
ending 31 December 2012.
Direct Material Rs 90,000
Direct Wages 75,000
Profit 60,900
Selling and distribution Overheads 52,500
Administration Overheads 42,000
Factory Overheads 45,000
I. Prepare a job cost sheet indicating the prime cost, work cost, production cost, cost
of sale, and the sales value.
II. In 2013, the factory receives an order for a number of jobs. It is estimated that
direct materials cost Rs. 1,20,000 and Labour costs Rs 75,000. What should be
the price of these jobs if the factory intends to earn the same rate of profit on
sales? Apply works overheads as a percentage of direct wages, and administration
and selling and distribution overhead s a percentage of works cost. You can use
the rates prevailing in the previous year for this purpose.
07
(b) What is CVP Analysis? Explain uses of CVP Analysis and its Limitations. 07
Q.4 (a) The Riddhi company Ltd is a manufacturing company having three production
Departments X, Y, Z, and two service departments A and B. The following is the budget
for the next month:
Total
(Rs)
X Y Z A B
Direct
Material
2000 4000 8000 4000 2000
Direct Wages 10000 4000 16000 2000 4000
Factory Rent 8000
Power 5000
Depreciation 2000
Other
Overheads
18000
Area (Sq. ft.) 800 200 100 200 100 200
Horsepower 1.40 0.50 0.40 0.20 0.15 0.25
Machine-
Hour
18000 2000 4000 8000 2000 2000
Capital Value 20000 4000 8000 4000 2000 2000
Additional Information: A technical assessment of the apportionment of expenses of
service departments is as under:
X (%) Y (%) Z (%) A (%) B (%)
Service Dept. A 45 15 30 - 10
Service Dept. B 60 35 - 05 -
Required
I. A Statement showing the distribution of overheads to various departments.
II. A Statement showing redistribution of services departments expensed to
production departments
III. Machine-hour rates of the production departments X, Y and Z.
07
(b) Differentiate ABC and Absorption Costing. What are the benefits of ABC over
absorption costing?
07
OR
Q.4 (a) Elaborate in details necessary features for Zero-base budgeting? How do you think
Zero-base budgeting can be implemented? Is it practical to implement in Indian
07
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1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER? II ? EXAMINATION ? SUMMER 2016
Subject Code: 820001 Date: 25/05/2016
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.1 (a) Define the terms: Cost Accounting and Management Accounting. ?Management
Accounting is an extension of managerial aspects of Cost Accounting?. Discuss.
07
(b) Baldha Ltd. Produces a Chemical A of which standard material cost is:
40% of Material P at Rs. 4000 Per Metric Tonne
60% of Material Q at Rs. 6000 Per Metric Tonne
Standard Loss of 10% is expected in production. During January 2008, 171 metric tonnes
of A were produced from the use of 90 metric tonnes of material P at Rs. 3,600 per
metric tonne and 110 metric tonnes of material Q at Rs. 6,800 per metric tonne. Calculate
the following material Variances for the month of January 2008 indicating their nature,
i.e. favorable or adverse.
i. Material Price Variance
ii. Material Mixture Variance
iii. Material Yield Variance
iv. Material total Cost Variance
07
Q.2 (a) Following details are available:
Sales Total Cost
PERIOD 1 Rs 39,000 Rs 34,800
PERIOD 2 Rs 43,000 Rs 37,600
You are required to determine:
i. Contribution of the firm
ii. Annual Variable and Fixed Cots
iii. Margin of Safety as Percentage of Sales
iv. Break-Even Sales
(b) Write Short notes on:
i. Production order
ii. Job Costing
iii. Economic Batch Quantity
07
OR
(b) Site three Examples where direct expense is not included in the cost of production.
Justify why these expenses are not regarded as direct expenses.
07
Q.3 (a) The Costs records show the following expenses of manufacturing units of Product
X in a process:
Material Rs 4000
Labour 1500
Overheads 500
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 in gross carelessness
of the workers.
Show the treatment of wastage in the process A/c and prepare the abnormal wastage A/c.
07
(b) Enumerate the importance provisions of cost audit (report) rules and describe in what way
they are different from financial auditor?s report
07
2
OR
Q.3 (a) A factory uses job costing. The following cost data is obtained from its books for the year
ending 31 December 2012.
Direct Material Rs 90,000
Direct Wages 75,000
Profit 60,900
Selling and distribution Overheads 52,500
Administration Overheads 42,000
Factory Overheads 45,000
I. Prepare a job cost sheet indicating the prime cost, work cost, production cost, cost
of sale, and the sales value.
II. In 2013, the factory receives an order for a number of jobs. It is estimated that
direct materials cost Rs. 1,20,000 and Labour costs Rs 75,000. What should be
the price of these jobs if the factory intends to earn the same rate of profit on
sales? Apply works overheads as a percentage of direct wages, and administration
and selling and distribution overhead s a percentage of works cost. You can use
the rates prevailing in the previous year for this purpose.
07
(b) What is CVP Analysis? Explain uses of CVP Analysis and its Limitations. 07
Q.4 (a) The Riddhi company Ltd is a manufacturing company having three production
Departments X, Y, Z, and two service departments A and B. The following is the budget
for the next month:
Total
(Rs)
X Y Z A B
Direct
Material
2000 4000 8000 4000 2000
Direct Wages 10000 4000 16000 2000 4000
Factory Rent 8000
Power 5000
Depreciation 2000
Other
Overheads
18000
Area (Sq. ft.) 800 200 100 200 100 200
Horsepower 1.40 0.50 0.40 0.20 0.15 0.25
Machine-
Hour
18000 2000 4000 8000 2000 2000
Capital Value 20000 4000 8000 4000 2000 2000
Additional Information: A technical assessment of the apportionment of expenses of
service departments is as under:
X (%) Y (%) Z (%) A (%) B (%)
Service Dept. A 45 15 30 - 10
Service Dept. B 60 35 - 05 -
Required
I. A Statement showing the distribution of overheads to various departments.
II. A Statement showing redistribution of services departments expensed to
production departments
III. Machine-hour rates of the production departments X, Y and Z.
07
(b) Differentiate ABC and Absorption Costing. What are the benefits of ABC over
absorption costing?
07
OR
Q.4 (a) Elaborate in details necessary features for Zero-base budgeting? How do you think
Zero-base budgeting can be implemented? Is it practical to implement in Indian
07
3
organizations
(b) What is cost plus pricing? Explain the different methods available for pricing the
product for external customers.
07
Q.5 (a) Define: Standard Costs. Explain in details advantages of Standard Costing System
What are the different bases of classification of Variances?
07
(b) A department attains a sale of Rs 6, 00,000 at 80% of its normal Capacity and its
expenses are given below.
Administrative Expenses Rs Selling Costs Rs
Office Salaries Rs 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 and 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.
Draw up a flexible Administration overhead, Selling & Distribution overhead costs
budget, operating t 80%, 90%, 100% and 110% at normal capacity.
07
OR
Q.5 (a) Explain in detail the Concept of Opportunity Costs. How does it differ from imputed
cost?
07
(b) The Following data relate to the manufacture of a standard Product during the four weeks
ended 27 March 14.
You are required to
prepare a cost sheet in respect of the above, Showing
I. Cost per unit.
II. Profit per Unit Sold and Profit for the Period.
Raw Materials Consumed Rs. 15,000
Direct Wages 9,000
Machine Hours Worked 900
Machine Hour Rate Rs 5
Administrative overhead 20% of Works Cost
Selling Overheads Re. 0.50 Per Unit
Units Produced 17,100
Units Sold 16000 @ Rs 4 Per Unit
07
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This post was last modified on 19 February 2020