Master of Commerce (M.Com.) Part I SEM II 2016 2017 May 2017 I COST AND MGMT ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q2 Figures to right indicates marks,
2. Q3 All working notes should form part of your answer
3. Q1 Gaurav Plast & Co produces plastic Paper staplers for office use. All parts are produced internally with ) exception of metal base plate. At present these plates are purchased from Kirit Plast & Co ata price of Rs.300 per thousand plates. Annual stapler sales have averaged 1,00,000 units and no change in the consumer demand is anticipated. Kirit Plast has informed Gaurav Plast that the purchase price of the plate shall be increased by Rs.100 per thousand plates on immediate effect. Gaurav Plast has unused plant capacity that is adequate to handle the production of plates, Management has requested the prepare the feasibility study of producing plates internally. The controller was informed that another company in the area is willing to take on rent the unused plant space for storage purposes on an annual rent of Rs.5000. The controller assembled the following cost data which discloses that annual manufacturing costs for internal production of plates are Rs.41000 with following details for 1,00,000 units Prepare a statement showing annual costs to make plates, buy plates and cost increase or Savings if plates are produced using marginal costing technique for decision making 15 marks
4. Q1 has following budget estimates for the year 2016- @ You are required to Calculate P/V Ratio, Break Even Point and Margin of Safety. Also calculate revised Ratio, Break Even Point and Margin of Safety if there is: 15 marks
   • a) Increase in variable costs by 10%
   • b) Decrease in selling price by 15% Increase in selling 10% and decrease in variable cost by 5%
   • d) Increase in Fixed 50%
   • Q.P. Code : 11884
5. Q2 Following is the Balance sheet of M/s. Purav Products as on 31.12.2016: Other relevant data is as follows:
   • a) Sales estimates are: January 48,000 March 66,000 May 60,000
   • b) 40% of the Sales are on Cash basis and Credit Sales are collected.in the month following their
   • c) Cost of sales is 60% of Sales;
   • d) Inventory equivalent to next two budgeted Salesis kept at the end of each month;
   • e) Creditors in the month following the purchases;
   • f) Ignore interest on any Overdraft or other financial help taken Prepare Patanjali Product's Cash budget for January, 2017 to March, 2017 on the basis of the
6. Q2 The expenses budgeted for production of 10,000 units in a factory are furnished below: Prepare a budget for production of 8,000 units
7. Q3 Titbit Corporation has been permitted to run a mini bus in a route covering a distance of 20 of kms (one-side). The mini bus has been purchased at a cost Rs. 10 lakh, which was financed by bank and other The annual charges for the mini bus are insurance Rs. 4,500, road-tax Rs. 3,000 and garage rent Rs. 2,000 Cost of repairs and maintenance is estimated at Rs. 15,000 p.a. while replacement of tyres and tubes will cost Rs. 700 p.m. Office expenses are estimated at Rs. 6,000 pm. Petrol and Oil will cost Rs, 5 per kilometre
   • Q.P. Code : 11884 Two drivers and two conductors are engaged at a monthly salary of Rs. 5,000 and Rs 3,500 each respectively. In additon, drivers and conductors are entitled to 5% commission on the sale of tickets The effective life of the vehicle is estimated at 5 years, at the end of which the vehicle will have scrap value of Rs. 1,00,000. The mini bus is 24 seater and is expected to run 6 two-way trips during the day for 25 days in a month, carrying its full load You are required to submit a passenger fare structure for approval by the transport authority, which allows 20% profit on net fare, Interest on loan Rs. 10,000 p.a. is also to be included as cost Following details are given for Product P: 15 Calculate all the Material variances
8. Q4 A Rewrite the entire sentence selecting the most appropriate alternative with the given serial no.s without altering the order sequence : 8 marks
9. Q1 Fixed costs are fixed (totally per unit both of these)
10. Q2 budget to be prepared for 6 consecutive months, Bank overdraft i.e. temporary finance as may be required be worked out at once for all 6 months simultaneously
11. Q3 accounting will effected in Cash budget (be/ not be)
12. Q4 budget can be prepared only after Production budget is ready 5; isthe or cost unit in transport costing
13. Q6 Tour by Bus business, the fuel cost will depend upon
    • J. factor is known as the key factor (most scarce least scarce most liked)
14. Q8 will be Standing costs for a Tourism business (Fuel Insurance Oil and accessories) State statements are True or False: 07
    • i. If an expense can be identified with specific cost of product, it is treated as direct expenses
    • ii. volume rather than time
    • iii. Future costs are not relevant while making managerial decision
    • iv. -In-Zero based budget important reference is made to previous level of expenditure
    • v. There is no difference between direct and indirect labour vi: Operating costing helps to fix the rates of carriage of goods and passengers vii, Production budget is prepared before sales budget
    • Q.P. Code : 118384
15. Q4 Write short notes On (any 3)
16. Q1 Master Budget :
17. Q2 Marginal Costing
18. Q3 Profit Variance
19. Q5 Service Costing

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