## Download "Cost Management" Question Paper of B. Com. (Bachelor of Commerce) 4th Semester Previous Years for Students.

• Wednesday, May 24, 2023

## B. Com. - Bachelor of Commerce 4th SemesterCost Management

Paper: BCM-404

Time Allowed: Three Hours] [Maximum Marks: 80

Note:-Attempt any FOUR questions from Section A of 5 marks each. Attempt any TWO questions each from Section B and Section C of 15 marks each.

SECTION-A

1. What do you understand by Process Losses? Give their accounting treatment.

2. Write a note on Value Chain Analysis.

3. Two similar plants are working under the same management. The following particulars are given:

Calculate:

(i) Capacity of the combined plant to be operated for the purpose of Break-Even point where management wants to combine two plants.

(ii) Profit at 75% of combined plant capacity.

4. In a factory 10,000 units are budgeted to be produced in a month with a budgeted fixed expenses being Rs. 15,000 i.e. Rs. 1.50 per unit. The actual output during the month was 11000 units and actual fixed expenses being Rs. 15,500. The increase in output was due to 5% increase in capacity. The budgeted working days were 25 days but factory worked for 27 days. Calculate different overhead variances.

5. The ratio of variable cost to sale is given to be 70%. The breakeven point occurs at 60% of capacity sale. Find the capacity sale when fixed costs are Rs. 1,50,000. Determine profit at 80% and 100% of sale.

6. Two products A and B are obtained in a crude form and require further processing at a cost of Rs. 5 for A and Rs. 4 for B per unit before sale. The sale price of product A is Rs. 13.75 per unit and Product B is Rs. 8.75 per unit. Profit on both the product is 20% on selling price. The output of product A is 8000 units and product B is 6000 units. The Joint Costs of both the products is Rs. 88,000. Ascertain Joint Cost per unit.

SECTION-B

7. Define Cost Management. Discuss its need and importance in effective cost reduction and cost control. Also, explain the various areas of cost management.

8. Write notes on (any TWO) :--

(a) Uniform Costing.

(b) Difference between Job Costing, Batch Costing, and Process Costing.

(c) Activity Based Costing (ABC Costing).

9. Kapoor and the company undertakes long-term contracts. The following information is supplied regarding the contract which is incomplete on 31st March 2021.

11. Distinguish between Absorption Costing and Marginal Costing. State and explain the application of marginal costing in cost reduction, cost control, and in decision-making.

12. What is meant by Standard Costing? How Standard Costing is different from Budgetary Control? What are the main steps in Budgetary Control ?

14. Prepare a Cash Budget for the period April to June 2021 indicating the extent of bank loan the company will require at the end of each month.

(b) 25% of the sale is for cash and the period of credit allowed to the customer is one month.

(c) Creditors and wages are paid in the next month. All purchases are on credit.

(d) Cash at Bank on 1 April 2021 is Rs. 25,000.