B.Com. (Financial Management) SEM III 2018 2019 Oct 2019 COST ACCOUNTING II Question Paper - Mumbai University | munotes

Questions asked in this paper

• (2)Figures to the right indicate full marks

1. Q1 Select the most appropriate option and rewrite the full sentence.(Any 8) 8 marks
   • 1. is most likely to be fixed cost
   • a) Cost of material used in production
   • b) Rent
   • d) Commission
   • 2. Remuneration paid to technical director is a part of
   • a) Works cost
   • b) Prime cost
   • c) Administrative overheads
   • d) All of the above
   • 3. The costs associated with storage are an example of
   • a) Quality cost
   • b) Labour cost
   • c) Ordering cost
   • d) Carrying cost
   • 4. Idle time is
   • a) Time spent by workers in factory
   • b) Time spent by workers in offices
   • c) Time spent by workers in their jobs
   • d) Time spent by workers without work
   • 5. Material inspection note is signed by the
   • a) Inspector
   • b) Storekeeper
   • c) Cost accountant
   • d) All of the above
   • 6. Overhead expenses can be classified according to
   • a) Functions
   • b) Elements
   • c) Behavior
   • d) All of the above
   • 7. The cost which does not involve any cash outlay is
   • a) Sunk cost
   • c) Relevant cost
   • d) Book cost
   • 8. ABC analysis is a technique developed for
   • a) Inventory management
   • b) Inventory control
   • c) WIP control
   • 9. Labour turnover is calculated by
   • a) Separation method
   • b) Replacement method
   • c) Flux method
   • d) All of the above
   • 10. Indirect costs are known as
   • a) Fixed cost
   • b) Overheads
   • c) Variable cost
   • d) None of the above
2. Q1 (B). State whether the following statements are true or false: (Any 7) 7 marks
   • 1. Abnormal idle time wages are excluded from cost of production
   • 2. Under absorption of overheads increases profits in costing books
   • 3. Financial accounts fail to give a product wise break-up of profit or loss
   • 4. Material losses due to fire should be transferred to costing profit and loss account
   • 5. Bin cards are not part of accounting records
   • 6. FIFO method is usually suitable in case of perishable materials
   • 7. High labour turnover usually increases the labour cost
   • 8. Cash discounts are generally excluded from cost sheet
   • 9. Preliminary expenses written off appear only in financial accounta
   • 10. Interest on capital is imputed cost Prepare store ledger Account as per FIFO and Weighted Average Method of material “Zenu” for month A company provides the following information regarding material: (08 marks) Purchase price of input unit= Rs.25 per unit EOQ 11) Total Annual carrying cost and ordering cost
3. Q2 (b) The following information is available in respect of material: 7 marks
4. Q3 Mr.A an employee of XYZ Co. gets the following emoluments and benefits:
   • c. Employers contribution to provident fund — 8 percent of salary and Dearness Allowance
   • d. Employers contribution to E.S.I— 4 percent of salary and Dearness Allowance
   • e. Bonus — 20 percent of salary and Dearness Allowance Mr. A work for 2000 hours per annum, out of which 400 hours are non-productive but treated as normal idle time. You are requested to find out the Effective Hourly cost of Mr. A Also find cost per Day if Mr. A is working 8 hours in a day
5. Q3 a: A worker produced 250 units in a weeks’ time. The Guaranteed weekly wage payment for hours is Rs.81. The expected time to produce one unit is 15 minutes which is raised further by 20 percent under the incentive scheme. What will be the earnings per. hour of that worker under Halsey(50 % sharing) and Rowan bonus scheme? 50 marks
6. Q3 b: In a manufacturing concern the daily wage rate is Rs.3.50. The standard output in a week is 250 units representing 100 percent efficiency. The daily wage rate is paid without bonus to those worker who show up to 66 2/3% of the efficiency standard. Beyond this there is a bonus payable on a graded scale as Further increase of for every | percent further rise efficiency. Ina 6 week Mr. A produced 200 units, Mr. B- 150 Mr.C -230 units, Mr. D -220 units and E 130 units Calculate the earnings of each worker using Emerson Efficiency Bonus System A factory has 3 production departments (P1, P2, P3) and 2 service departments ( and S2). The following overheads and other information are extracted from the books for the month of January 2018: Paper Subject Code: 80009 Cost Accounting - IT Allocate or apportion the overheads among the various departments on suitable basis Classify the given cost on basis of:
   • A. basis of Traceability:
   • 1. Raw Material
   • 2. Printing
   • 3. Salary to office staff
   • 5. Carriage Outward B: basis of Function:
   • 4. Compensation to salesman
   • 5. Telephone charges
   • C. basis of relation to change in Behaviour:
   • 1. Carriage Inward
   • 2. Direct labour
   • 3. Direct Material
   • 4. Direct Wages
   • 5. Power and Fuel
7. Q5 a: Distinguish between Cost Accounting & financial Accounting 8 marks
8. Q5 b: Explain in detail maintenance of stock ledger Write Short note on: (any 03) 7 marks
   • 1. Variable Cost
   • 2. Labour Turnover
   • 3. Limitation of Cost Accounting

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