Punjab Technical University 2010 B.B.A Cost accounting [b0113] - Question Paper

Roll No. ......................
Total No. of ques. : 13] [Total No. of Pages : 03


Paper ID [B0113]

(Please fill this Paper ID in OMR Sheet)
BBA (BB - 302) (S05) (O) (LE) (Sem. - 3rd)


COST ACCOUNTING

Time : 03 Hours Maximum Marks : 75
Instruction to Candidates:
1) Section - A is Compulsory.
2) Attempt any 9 ques. from part - B.

part - A
Q1) (15 x two = 30)
a) Write short note on fixed and variable cost. b) What do you mean by cost control?
c) What is meant by "Break-even Point"?
d) Write short note on EOQ.
e) What are main objectives of cost accounting?
f) What do you mean by marginal cost? discuss with example.
g) Write short note on FIFO method.
h) Explain with example Piece wage system.
i) What is meant by standard costing?
j) Explain in brief margin of safety.
k) Describe in few words profit quantity (P/V) ratio.
l) Write 4 points of Difference ranging from cost accounting and financial accounting.
m) Explain the meaning of inventory control. n) Relevant cost and opportunity cost.
o) From the subsequent info compute break even point
Fixed Cost Rs. 45,000
Variable cost Rs. 45,000
Sales Rs. 1,00,000


part – B (9 x five = 45)
Q2) How do you assess product profitability? What factors are considered for regarding cost while making make or buy decisions?
Q3) Distinguish ranging from piece wage and time wage system.
Q4) elaborate the main causes of difference ranging from the outcomes shown in financial accounts and cost accounts?
Q5) elaborate the main advantages of preparing break-even charts?
Q6) discuss the importance of cost accounting.
Q7) elaborate the main advantages of LIFO method?
Q8) The avg. annual consumption of material is 20,000 kg at a price of Rs. two per kg. The storage cost is 16% on avg. inventory and the cost of pricing 1 order is Rs. 50. How much is to be purchased at a time?
Q9) From the subsequent data compute
(a) P/V Ratio
(b) Profit when sales are Rs. 20,000
Fixed expenses Rs. 4,000
Break even point Rs. 10,000.
Q10)From the subsequent info compute
(a) Material cost variance
(b) Material price variance
(c) Material usage variance.
Standard output 100 units
Standard material per unit three lbs
Standard price per lbs Rs. 2
true output 80 units
true price Rs. 2.50
true material used 250 lbs

Q11)Prepare cost sheet to show total cost of production and cost per unit for the goods manufactured by the company for the month of August 2009.
Stock of raw material as on 1.08.2009 3,000
Raw material purchased 28,000
Stock of raw material as on 31.08.2009 4,500
Manufacturing wages 7,000
Depreciation on plant 1,500
Loss on sale of part of plant 300
Factory rent and rates 3,000
Office rent 500
General expenses 400
Discount on sales 300
Advertisement Expense to be charge fully 600
Income tax paid 2,000
The number of units produced during August 2009 was 3,000.
Q12)What is standard costing? elaborate its advantages?
Q13)The budgeted and true figures for the month of January in respect of sales are provided beneath :
Product Budgeted Actual
Quantity Price (Rs.) Value (Rs.) Quantity Price (Rs.) Value (Rs.)
A 600 10 6,000 600 8 4,800
B 1000 four 4,000 800 5 4,000
10,000 8,800

compute the sales variances, presuming that the products are not
homogeneous.

Earning:   Approval pending.