BCom TY BCom Sem 6 2022 2023 Apr 2023 FINANCIAL ACCOUNTING AND AUDITING VIII COST ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

• e Figures to the right indicate full marks allotted to the questions

1. Q1 A) Select the most appropriate option and rewrite the full sentence (Any Ten) 10 marks
2. Q1 Prime cost plus Variable Overhead is known as
   • (a) Production Cost
   • (b) Marginal Cost
   • (c) Total Cost
   • (d) Cost of Sales
3. Q2 include all direct cost and all indirect cost
   • (a) Total Cost
   • (b) Administration cost
   • (c) Selling cost
   • (d) Prime cost
   • (a) bincard and stores ledger
   • (b) bill of material and material requisition
   • (c) purchase requisition and purchase order
   • (d) inward and outward invoices
   • (a) Only consumption of material
   • (b) Only issue of material
   • (c) Only purchase of material
   • (d) Purchase, storage and issue of material
4. Q5 discount is offered to purchaser on buying large quantities
   • (a) Credit
   • (b) Cash
   • (c) Seasonal
   • (d) Quantity
5. Q6 Time study is for
   • (a) Measurement of work
   • (b) Fixation of standard time
   • (c) Ascertainment of actual hours
   • (d) Ascertainment of labour cost
   • (a) can be avoided
   • (b) cannot be avoided
   • (c) can be minimised
   • (d) can be controlled Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting
6. Q8 Labour turnover is caused by
   • (b) Only Discharge
   • (c) Only Dissatisfaction with job
   • (d) Low wages, discharge and dissatisfaction with job
7. Q9 Expenditure over and above prime cost is known as
   • (a) Overhead
   • (b) Factory cost
   • (c) Cost of sales
   • (d) Cost of production
8. Q10 Directors’ remuneration and expenses form a part of
   • (a) production overhead
   • (b) administration overhead
   • (c) selling overhead
   • (d) distribution overhead
9. Q11 Which of the following items is included while preparing a Cost Sheet?
   • (a) Property Tax on Factory Building
   • (c) Transfer to reserves
   • (d) Provision for taxation
10. Q12 Salary paid to partner is
    • (a) Office and administrative overheads
    • (b) Not a part of Cost sheet
    • (c) Selling and Distribution Overhead
    • (d) Factory Overheads
11. Q1 (B) State whether the Following Statements are True or False (Any ten). 10 marks
12. Q1 Costs which have been incurred in past are known as Historical Cost
13. Q2 Normal cost is an unusual cost whose occurrence is usually irregular and unexpected and due to some abnormal situation
14. Q3 Cost unit is a form of measurement of volume of production or services
15. Q4 Carriage inward is not really an Overhead at all but it is a Direct Cost
16. Q5 Buffer stock is that material which is held in reserve to meet a sudden order or any
17. Q6 Average method of pricing the material issues is useful when material prices are
18. Q7 Piece Rate Plan differentiates between efficient and inefficient workers
19. Q8 Cost of stores is allocated on the basis of direct wages
20. Q9 Depreciation on plant and machinery is part of works overheads
21. Q10 Cost of storage space is an example of carrying cost
22. Q11 Under valuation of closing stock in costing increases costing profit
23. Q12 Primary packaging charges is an example of selling and distribution overheads Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting
24. Q2 From the following balances prepare a cost sheet 20 marks
25. Q2 The following are the details of purchases & sales made during the month of March You are required to prepare 1) Stock Ledger Account under FIFO method 2) Stock Ledger Account Under Weighted Average method. (20 Marks)
26. Q3 Mr. Anand an employee of a company gets the following emoluments and benefits: Dearness Allowance Rs. 100% of Basic Wages Employer’s Contribution to Provident Fund 10% of Basic Wages Employer’s Contribution to E.S.I. 5% of Basic Wages Bonus 20% of Basic Wages He works for 3,000 hours per anum, out of which 500 hours are normal idle time Mr. Anand worked 50 effective hours on a Job Y, where the cost of direct material is Rs 40,000 and overheads are 40% of combined cost of Material & Labour The Sale value of Job Y is quoted to earn profit of 50% on cost You are required to find out effective hourly cost of Mr. Anand and the expected sales value of job Y Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting
27. Q3 (A) Calculate the comprehensive machine hour rate from the following details: Life of Machine 5 Years Lubricant Oil Rs 80 per day of 8 hours Consumable stores Rs. 200 per day of 8 hours Wages of machine operator Rs 160 per day of 8 hours 10 marks
28. Q3 (B) The following information relating to type of Raw material is available Marks) Calculate Economic Order Quantity and total annual Inventory cost of the raw material
29. Q4 Amit company has five departments P,N,R,S & T The actual cost for a period are as The following data are also available regarding the five departments: Prepare a Statement of Primary Distribution of Overheads
30. Q4 (A) Calculate the earnings of a worker under
31. Q1 Halsey Plan
32. Q2 Rowan plan from the following particulars
33. Q1 Hourly rate of wages guaranteed Rs 10 per hour
34. Q2 Standard time for producing | article is 5 Hours
35. Q3 Actual Time taken by the worker to produce 10 articles is 40 Hours Marks) Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting
36. Q4 (B) Prepare a Reconciliation Statement From the Following Cost Sheet And related Trading & Profit & Loss Account to Match the Financial Profit with that of Cost Sheet Purchase of Raw Material 3,000 Less: closing Stock of Raw Material 500 COST OF PRODUCTION 8,000 COST OF SALES 10,200
37. Q5 (A). Explain the use of Relevant cost, Sunk Cost, Imputed Cost, Opportunity Cost, Shut down cost for decision making. (10 Marks)
38. Q5 (B). What do you mean by an Overhead? Explain the classification of overhead based on Behaviour of cost. (10 Marks)
39. Q5 Write Short Notes (Any Four out of Six) 20 marks
40. Q1 Indirect Costs
41. Q3 Labour Turnover
42. Q4 Production Overheads
43. Q5 Under -Absorption of Overheads Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting
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