Bangalore University 2006 B.Com COST ACCOUNTING - Question Paper

IV Semester B.Com. Examination, May/June 2006
(Semester Scheme)
COST ACCOUNTING (Paper - 4.6)

Time : three Hours Max. Marks : 90

Instruction : Answers should be written completely either in Kannada or in English.

part - A

1. ans any ten of the subsequent. every carries two marks : 10x2=20

a. Distinguish time study from motion study.

b. Define costing.

c. What are ‘Notional Expenses’ ? provide examples.

d. What is lead time ?

e. Mention any 4 Non-Monetary incentives.

f. Give the meaning of semi-variable cost. provide an example.

g. Distinguish ranging from works on cost and works cost.

h. What is Merit Rating ?

i. How do you treat work-in-progress in cost sheet ?

j. How will you apportion the subsequent expenses among different departments ?
i. Depreciation
ii. Rent
iii. Repairs
iv. Supervision

k. Write any 4 items which appear only in Financial accounts.

l. Find out the EOQ from the subsequent :
Annual usage 6,000 units, cost of material per unit Rs. 20, cost of placing and receiving 1 order Rs. 60, annual carrying cost of 1 limit 10% of inventory value..

ans any 5 of the subsequent. every carries five marks : 5x5=25

2. What is a cost sheet ? elaborate its advantages ?

3. Briefly discuss the different techniques of inventory control.

4. discuss the subsequent methods of wage payment :
a. Taylor’s differential piece rate system.
b. Merrick’s multiple piece rate system.

5. What is Reconciliation Statement ? List the reasons for the difference ranging from profit shown by cost and financial accounts.

6. A Modern Spares supplies you the subsequent figures for the year 2001 :

Production 1,000 units

Cost of material Rs. 20,000

Labour Cost Rs. 12,000

Factory overhead Rs. 8,000

Office overhead Rs. 4,000

Selling expenses Rs. 1,000

Rate of profit 25% on selling price.

The manufacturer decides to produce 1,500 units during the year 2002. It is estimated that cost of raw material will increase by 20%, labour cost will increase by 10%, 50% of overhead charges are fixed and other 50% of the overhead charges are variable. The selling expenses per unit will be decreased by 20%. The rate of profit will remain the identical. Prepare a statement for 2002 showing a) Total profit and b) Selling price per unit.

7. compute a) Re-order level b) Re-order volume and c) Maximum stock level.

Minimum stock level : 2,550 units

avg. stock level : 4,550 units

Consumption : Maximum 800 units per month
Maximum 1500 units per month

Delivery period : Minimum two months

Earning:   Approval pending.