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Saturday, November 5, 2016




May 2014
B.COM PROFFSSINAL
BCOP 403 COST ACCOUNTSING -1
Roll no……..
Time allowed – 03 hrs
Note: Section  A carries ten sub-questions and all are compulsory. Each question carries two marks. Attempt any four questions from section B. each question carries ten marks.
Section –A
1.     Write short note on cost centre
2.     Define a ‘Bin  Card’?
3.     Calculate Economic Batch Quantity.
Total number of units to be produced in a year: 10,000
Unit set-up cost per batch; rs.200
Carrying cost per unit of production : rs. 010 per unit
4.     Define ‘Machine Hour Rate’.
5.     Time rate rs.2 hour; standard time 10  hours; time taken 8 hours; calculate wages according to Halsey weir-scheme from above data.
6.     What do you mean by break even point?
7.     Distinguish between marginal costing and differential costing.
8.     Write short note on material Usage variance.
9.     What do you mean by life cycle costing?
10.                        Calculate the efficiency ratio:
Budgeted production     88 units      actual production 75 units
Standard hours per unit 10               actual working hours     600
Section –B
1.     What is cost accounting ? what are its advantages as compared to financial accounting?
2.     The following data relate to a particular item in stock:
Normal usage           110 units per day
Minimum usage        50 units per day
Maximum usage        140 units per day
Lead time                  25-30 days
EOQ                          5000 units
Using  the data, calculate the re-order, minimum and maximum levels
3.     From the following information given by a manufacturing company which manufactures a product, you are required to prepare process accounts.
Process 1    process 2    process 3
          Direct materials    30,000        7,500          7,500
          Direct wages         22,500        15,00          15,000
          Closing stock       7,500          8,750          21,300
          Finished goods is sold for Rs. 1,30,000 value of closing finished stock is Rs. 5,112. It is the policy of the company to charge 20% on transfer price or 25 % on cost price while transferring the goods from process I to II 20 % on cost price form II to III and from III to the finished stock.
4.     ‘Activity Based Costing has been developed because traditional product costing has certain limitations’. Discuss
5.     Comment on ‘variance analysis is an integral part of standard costing system’

6.     A company has the capacity of producing 80,000 units and presently it sells 20,000 units at rs. 110 per unit. The demand is sensitive to selling price and it has been observed that with every reduction of Rs. 10 in selling price, the  demand is doubled. What should be the target cost at full capacity if profit margin on sale is taken as 25 %?

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