Biju Patnaik University of Technology 2009-2nd Sem B.Tech Information Technology 3rd/4th sem -enggeconomics & costing - Question Paper
BPUT 3rd/4th sem 2009 -engg. economics & costing for all branch
Process A |
ProcewB |
Process C | |
Direct material |
RS. 5,200 |
Rs 4.000 |
Rs, 6,000 |
Direct wages |
Rs 4.000 |
Rs. 6.000 |
Rs. 8.000 |
Output in units |
950 |
650 |
700 |
Normal loss in units |
50 |
100 |
150 |
Value of scrap per unit |
Rs. 4 |
Rs. 5 |
Rs. 10 |
Additional information :
(a) 1000 units @ Rs. 6 per unit were introduced in Process A.
(b) The production overhead was Rs. 18,000 for the month which is to be apportioned among A, B and C on the basis of Direct wages.
You are required to prepare Process Accounts for the above period. 1G
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Total number of printed pages - 7 B. Tech
HSSM4201
Fourth Semester Examination - 2009 ENGINEERING ECONOMICS AND COSTING
Full Marks-70 Time:3 Hours
Answer Question No. 1 which is compulsory and any five from the rest.
Figures in the right hand margin indicate marks.
1. Answer the following questions ; 2x10
(a) What is present worth comparison ?
(b) Draw a cash flow diagram taking imaginary figures.
P.T.O.
(c) Why depreciation is charged in Diminishing Balance Method ?
(d) What do you mean by standard costing ?
(e) Give the acceptance ruies of IRR,
(f) What do you mean by single parameter sensitivity analysis ?
(g) What is meant by Pay back period comparison ?
(h) What do you mean by Labour Cost Variance ?
(i) How do you calculate Break Even Point ?
0) How do you calculate Abnormal Process Loss ?
HSSM 4201 2 Contd.
What are the reasons of Depreciation of fixed assets ? Also explain the needs for charging Depreciation. 5+5
I. A firm has two alternative proposals for investing in either Machine X or Machine Y. The following data are available:
UIOD*
-M
vQ.
rs.
Machln* X |
Machine Y | |
Initial purchase price Estimated service life Salvage value at the end Annua! maintenance cost |
Rs. 4,00.000 4 years Rs. 2.00,000 Rs. 40,000 |
Rs. 8,00,000 4 years Rs. 5,50.000 Nil |
By using future worth method of comparison determine the machine which is more suitable for the firm. The prevailing interest rate is 12%
9
10
p.a. HSSM 4201
3 P.T.O.
4. How do you make a Cost Benefit Analysis of a public project ? Explain with the help of one example. 7+3
*
5. Discuss the basic present worth comparison patterns of Assets having unequal lives and infinite Jives. 5+5
6. "Cost Control and Cost Reduction are thoroughly interrelated." Justify the truth or otherwise of this statement. 10
7. The following data are obtained from ABC Co. Ltd. :
Sales Rs. 1,00.000
Variable cost Rs. 60,000
Fixed cost Rs. 30,000
You are required to calculate : 10
(a) PA/ ratio
(b) Break Even Point
(c) Margin of Safety
(d) Break Even Point when there is 20% uioD' increase in selling price
(e) Break Even Point when there is 10% decrease in Fixed cost.
ZS.
A product is obtained after passing through three processes A. B and C. The following information is collected in January, 2007 :
9
HSSM 4201 5 P.T.O.
Attachment: |
Earning: Approval pending. |