Biju Patnaik University of Technology 2009-2nd Sem B.Tech Information Technology 3rd/4th sem -enggeconomics & costing - Question Paper

BPUT 3rd/4th sem 2009 -engg. economics & costing for all branch

	Process A	ProcewB	Process C
Direct material	RS. 5,200	Rs 4.000	Rs, 6,000
Direct wages	Rs 4.000	Rs. 6.000	Rs. 8.000
Output in units	950	650	700
Normal loss in units	50	100	150
Value of scrap per unit	Rs. 4	Rs. 5	Rs. 10

Additional information :

(a)    1000 units @ Rs. 6 per unit were introduced in Process A.

(b)    The production overhead was Rs. 18,000 for the month which is to be apportioned among A, B and C on the basis of Direct wages.

You are required to prepare Process Accounts for the above period.    1G

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Total number of printed pages - 7    B. Tech

HSSM4201

Fourth Semester Examination - 2009 ENGINEERING ECONOMICS AND COSTING

Full Marks-70 Time:3 Hours

Answer Question No. 1 which is compulsory and any five from the rest.

Figures in the right hand margin indicate marks.

1. Answer the following questions ; 2x10

(a)    What is present worth comparison ?

(b)    Draw a cash flow diagram taking imaginary figures.

P.T.O.

(c)    Why depreciation is charged in Diminishing Balance Method ?

(d)    What do you mean by standard costing ?

(e)    Give the acceptance ruies of IRR,

(f)    What do you mean by single parameter sensitivity analysis ?

(g)    What is meant by Pay back period comparison ?

(h)    What do you mean by Labour Cost Variance ?

(i)    How do you calculate Break Even Point ?

0) How do you calculate Abnormal Process Loss ?

HSSM 4201    2    Contd.

What are the reasons of Depreciation of fixed assets ? Also explain the needs for charging Depreciation.    5+5

I. A firm has two alternative proposals for investing in either Machine X or Machine Y. The following data are available:

	Machln* X	Machine Y
Initial purchase price Estimated service life Salvage value at the end Annua! maintenance cost	Rs. 4,00.000 4 years Rs. 2.00,000 Rs. 40,000	Rs. 8,00,000 4 years Rs. 5,50.000 Nil

By using future worth method of comparison determine the machine which is more suitable for the firm. The prevailing interest rate is 12%

10

3    P.T.O.

4.    How do you make a Cost Benefit Analysis of a public project ? Explain with the help of one example.    7+3

*

5.    Discuss the basic present worth comparison patterns of Assets having unequal lives and infinite Jives.    5+5

6.    "Cost Control and Cost Reduction are thoroughly interrelated." Justify the truth or otherwise of this statement.    10

7.    The following data are obtained from ABC Co. Ltd. :

Sales    Rs. 1,00.000

Variable cost    Rs. 60,000

Fixed cost    R_s. 30,000

You are required to calculate :    10

(a)    PA/ ratio

(b)    Break Even Point

(c)    Margin of Safety

(d)    Break Even Point when there is 20% uioD' increase in selling price

(e)    Break Even Point when there is 10% decrease in Fixed cost.

A product is obtained after passing through three processes A. B and C. The following information is collected in January, 2007 :

HSSM 4201    5    P.T.O.

Attachment: biju-patnaik-university-of-technology-2009-b-tech-information-technology-36262-1.pdf

Earning:   Approval pending.