Punjab Technical University 2008 B.B.A COST ACCOUNTING - Question Paper

Roll No______ Total no of Pages:4

1012
BBA 304
COST ACCOUNTING
3RD Semester (2096)

Time: 3 Hours Max Marks:75

Note: Part a is compulsory. every ques. carries two marks. Attempt any 9 (9) ques. of five marks every from Part B.

Part A (15x2=30)

1. Write short notes on the following:

a. What are the main objectives of cost accounting.
b. Differentiate ranging from cost accounting and cost accountancy.
c. Distinguish ranging from direct and indirect cost.
d. What is the objective of preparing cost sheet.
e. Why margin of safety is computed.
f. Define P/V ratio.
g. Discuss the importance of variable cost in make or buy decision.
h. Discuss semi-fixed cost.
i. How break-even point is computed in units?
j. Discuss labour idle time variance.
k. Distinguish ranging from marginal cost and marginal costing.
l. What is meant by capacity variance?
m. Differentiate ranging from standard cost and estimated cost.
n. State 2 reasons for not reconciling budgeted profit and true profit.
o. Define contribution.


Part B
2. What is the basic of classification of costs into various types?
3. How CVP analysis is useful in managerial decision making?
4. List different material variances and how they are calculated?
5. How product profitability can be ascertained with the technique of marginal costing?
6. Prepare cost sheet by using imaginary figures.
7. A manufacturing company disclosed a net loss of Rs. 5,72,000 as per their cost accounts records for the year ended March 31, 2005. The subsequent info was revealed as a outcome of scrutiny of figures of both the set of books:

i. Factory overheads over-absorbed Rs. 16,000
ii. Administration over heads under -
Absorbed Rs. 24,000
iii. Depreciation charged in financial
Accounts Rs. 2,20,000
iv. Depreciation charged in cost accounts Rs. 2,45,000
v. Interest on investment not included in
Cost account Rs.64,000
vi. Income Tax Provided Rs. 1,54,000
vii. Interest on loan funds in financial
Accounts Rs. 2,63,000
viii. Transfer fees (credit in financial books) Rs. 16,000
ix. Stores adjustment (credit in financial
Books) Rs. 8,000

Prepare a memorandum reconciliation account
8. The profit value ratio of Nanda Limited dealing in hand tools is 50% and marginal of safety is 40%. You are needed to workoput the break-even point and the net profit if the sales quantity is Rs. 50,00,000.

Earning:   Approval pending.