Deemed University 2011 B.B.A University: Lingayas University Term: I Title of the : Cost and management accounting - Question Paper

Roll No. ..

 

Lingayas University

BBA-MBA (Integrated) 1^st Year (Term II)

Examination Feb 2011

Cost and Management Accounting (BA - 1108)

 

[Time: 3 Hours] [Max. Marks: 100]

Before answering the question, candidate should ensure that they have been supplied the correct and complete question paper. No complaint in this regard, will be entertained after examination.

 

Note: Attempt five questions in all. All questions carry equal marks. Select two questions from Section A and two questions from Section B. Question no. 8 (Section C) is compulsory.

 

Section A

Q-1. Explain the role of cost accounting in a business firms and state the objectives and advantages of cost accounting. (20)

Q-2. Write short notes on following. (Attempt any two) (10x2=20)

(i) Labour variances

(ii) Economic order quantity and ABC Analysis

(iii) Standard and historical costing

Q-3. A furniture uses sun mica tops for table. It provides the following details.

Standard quantity of sun mica per table 4 sq. ft (20)

Standard price per sq. ft of sun mica Rs. 5

Actual production of tables 1000

Sun mica actually used 4, 300 sq. ft

Actual purchase price of sun mica per sq . ft. 5.50

Calculate the following:

(a)   Material cost variance

(b)   Material price variance

(c)   Material usage variance

Section B

Q-4. Explain the treatment of over and under absorption of overheads. (20)

Q-5. The following information is given (20)

Sales = Rs. 2, 00, 000

Variable Cost = Rs. 1, 20, 000

Fixed Cost = Rs. 30,000

Calculate

(i)             Break even point

(ii)            New break even if the selling price is reduce by 10%

(iii)           New break even point if variable cost increase by 10%

(iv)          New break even point if fixed cost increases by 10%

Q-6. Explain different type of budgets. Give the merits and limitations of budgets. (20)

Q-7. Explain the method of reconciliation of cost and financial account. (20)

Section C

Q-8. From the understated particulars you are required to prepare a monthly cost sheet of soap manufactures ltd. (20)

Opening inventory (1-1-2010)
Raw Material	6000
Work in progress	9620
Finished goods 1000 units	13,680
Closing inventory (13.1.2010)
Raw material	7,000
Work in progress	8020
Finished goods	?
Raw material purchased	72,000
Import duty on raw material purchased	14,400
Productive wages	18,000
Machine hours worked	21,600 hours
Machine hour rate	1.50
Chargeable expenses	2,000
Office and administration expenses	Rs. 1 per unit
Selling expenses	Rs. 0.9 per unit
Units sold	8000 units
Unit produced	8,200 units
Profit on sale	10%