BCom In Accounting & Finance (BCAF) Sem VI 2019 20 Oct 2019-20 COST ACCOUNTING PAPER IV Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 a) State whether True or False:- (Any 8) 8 marks
   • 1) Fixed Budget is prepared for an indefinite period
   • 2) depends upon variable and Fixed cost both
   • 4) In fixed budgets costs are classified according to their function
   • 6) In forecast, there is a promise or commitment to achieve estimates
   • 7) Variable cost per unit remains constant with the increase in the volume of output
   • 8) Sales minus variable is equal to fixed cost plus profit
   • 9) Fixed overhead expenditure variance is always favorable
   • 10) The main purpose of marginal costing is cost control
2. Q1 b) Fillin the blanks (Any 7) 7 marks
   • 1) Fixed cost is also known as
   • 2) Given Production at 60% activity, 600 units, Material Rs.50 per unit, LabourRs.20 per unit, Direct expenses Rs.5 per unit, Factory overheads Rs.20,000 ( 60% variable) and Administration expenses Rs.15,000 ( 60% fixed). What will be the total cost per unit for production at 75% capacity
   • 3) factor is defined as the factor in the activities of an organization which, at a particular point of time or over a period, will limit the volume of output
   • 4) Change in cost/ change in production = cost per unit
   • 5) decision arises when a firm is selling multiple products
   • 6) If company uses only one type of material, then following variance cannot be found
   • 8) Comparison of actual with the standard are done in order to determine
   • 9) A firm has produced the following budget for an activity level of 200,000 units: What would be the total cost for 150000 units level of activity?
   • 10)If sales is Rs.4,00,000 , Fixed cost is Rs.1,00,000 and Profit Volume Ratio is 40% , then profit
3. Q2 a) Calculate all Material Variances of Galaxy Ltd for the following data. Standard (per unit of output) Actual (output=1000) & K are three similar plants under same management of Red Chillies Ltd who want them to be merged for better operation. The details are as under (15) Variable cost (% of Sales) 60% 73 1/3% 50% Fixed Cost (Rs.in Lakh) 100 200 200 You are required to find out 15 marks
   • (a) The capacity of the merged factory for break even
   • (b) The profit at 80% capacity of the merged plant
   • (c) Sales required to earn a profit of Rs. 25 Lakh
4. Q3 a) You are given the following information of Super 30 Ltd for the 2018 15 marks
   • 1) Calculate P/V Ratio, Break-Even Point and the Margin of Safety II) Evaluate the effect of following on P/V Ratio, Break-Even Point and the Margin of
   • a) 10% increase in fixed Cost
   • b) 20% decreased in Variable Cost
   • c) 10% increase in Variable Cost
   • d) 15% decreased in fixed Cost
5. Q3 b) The expenses budgeted for production of 1,000 units in Vishnu Itd are furnished below: Prepare a budget for production of 600 units and 800 units assuming administrative expenses are rigid for all level of production Margin of safety Rs.90,000
   • 1. P.V. Ratio 4. Sales to earn a profit of 60,000
   • 2. Profit 5. Profit when sales was R.s.9,00,000
6. Q4 b) From the following information suggest the optimum sales mix. 15 marks
   • a) 450 units of P & 350 units of Q
   • b) 800 units of Q
   • c) units of P
   • d) units of P & 400 units of Q
7. Q5 a) Define Budgetary control & state its advantages. 8 marks
   • b) Explain benefits of Standard Costing. 7
8. Q5 Write Short Notes:- ( Any 3) 15 marks
   • 1. Purchase Budget
   • 2. Fixed overhead
   • 3. Key Factor
   • 4. Disadvantages of marginal costing

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