Calicut University 2006 Certification CWA/ICWA Institute Of Cost and Works Accountants Of India, - Question Paper

CWA/ICWA Inter :: Cost and Management Accounting: June 2006
ans ques. No. one which is compulsory and any 5 from the rest.

1. (a) Match the subsequent correctly. 1x5=5

Make or buy decision Over head absorption
Brick making Process costing
Motion study Work study
Supplementary rate Gilbreth
Split-off point Single output costing
Differential cost analysis
Joint cost

(b) In the subsequent cases 1 of the answers is accurate. select the accurate ans and provide your workings/reasons briefly: 2x5=10
(i) Tom Company Ltd. has Sales of Rs. 200,000 with variable expenses of Rs. 150,000, Fixed expenses of Rs. 60,000
and an operating loss of Rs. 10,000. How much would Tom Company have to increase its Sales in order to achieve an
operating income of 10% of Sales?
A: Rs. 400,000
B: Rs. 251,000
C: Rs. 231,000
D: Rs. 200,000
(ii) Warfied Company having net working Capital of Rs. three lakh has the current ratio of 1.8 and liquid ratio of 1.6. Its
value of Stock is
A: Rs. 55,000
B: Rs. 65,000
C: Rs. 75,000
D: Rs. 85,000
(iii) In a factory of ZB Ltd. operating standard cost system, 2,000 Kgs. of material @ Rs. 12 per Kg. were used for a
product, resulting in price variance of Rs. 6,000 (FAV) and usage variance of Rs. 3,000 (Adv.). Then standard
material cost of true production was
A: Rs. 24,000
B: Rs. 27,000
C: Rs. 30,000
D: Rs. 33,000
(iv) The standard time needed per unit of a product is 20 minutes. In a day of eight working hours a worker provide an output
of 30 units. If he gets a time rate of Rs. 20 per hour, his total earnings under Halsey Bonus Scheme will be
A: Rs. 200
B: Rs. 192
C: Rs. 180
D: Rs. 160

(v) A manufacturer used 400 units of a Component every month and buys them entirely from an outside supplier @ Rs.
40 per unit. The order placing and receiving cost is Rs. 100 and storage and carrying cost is 15% of the value of
Stock. To get maximum benefit the manufacturer should place order at a time for
A: 300 units
B: 400 units
C: 450 units
D: 500 units.
(c) State whether the subsequent statements are actual (T) or False (F): 1x5=5

(i) National expenses are not included for ascertaining cost.

Earning:   Approval pending.