Acharya Nagarjuna University (ANU) 2006 B.Com Part II - Commerce, III - COST AND MANAGEMENT ACCOUNTING - - Question Paper

B.Com. DEGREE EXAMINATION, DECEMBER 2006
(Examination at the end of Final Year)
Part II - Commerce
Paper III - COST AND MANAGEMENT ACCOUNTING

Time : 3 hours Maximum : 100 marks

part A - (4 X five = 20 marks)
ans any 4 of the subsequent ques..
every ques. carries five marks.

1. elaborate advantages of Management Accounting?

2. Distinguish ranging from Financial and Cost Accounting.

3. elaborate the different costs based on variability?

4. What do you mean by EOQ? List different methods of determining EOQ.

5. elaborate advantages of behaviourwise classification of overheads?

6. Prepare a proforma of Contract Account.

7. explain about the nature of financial statements?

8. elaborate limitations of Accounting Ratios?

part B - (2 X 10 = 20 marks)
ans any 2 of the subsequent ques..
every ques. carries 10 marks.

9. From the subsequent data, compute (a) Maximum level (b) Minimum level (c) Re-ordering level (d) avg. stock level. Re-ordering volume 1500 units, Re-order period four to six weeks. Maximum consumption 400 units per week, minimum consumption 250 units per week, Normal consumption 300 units per week.

10. A company uses Rs.50,000 worth raw material every year. The administration cost per purchase is Rs.50. The Cost per unit is Re. one an the carrying cost is 20% of the avg. inventory. There is an offer of 0.4% discount if they purchase 5 times per year instead of current policy. Should this be acceptable?

11. From the subsequent information, prepare a cost statement for year ended 31st December, 2005:
Opening Balances on 1.1.05 Closing balances on 31.12.05
Stock of raw material Rs.40,000 Stock of raw material Rs.50,000
Work-in-progress Rs.15,000 Work-in-progress Rs.10,000
Stock of finished goods Rs.6,000 Stock of finished goods Rs.15,000

Rs. Rs.
Purchase of raw materials 4,75,000 Carriage inwards 12,500
Work Manager’s salary 30,000 Wages 1,75,000
Factory employee’s salary 60,000 Power expenses 9,500
Factory rent, taxes, insurance 7,250 Other production expenses 42,000
General expenses 32,500 Sales for the year 8,60,000
Income tax 2,750 Dividend 500
Debenture interest 2,500 Goodwill 5,000
Payment of sales tax 8,000

12. From the subsequent profit and loss account prepare a common size income statement:
Particulars 2004 2005 Particulars 2004 2005
Rs. Rs. Rs. Rs.
To Cost of goods sold 6,000 7,500 By Net sales 8,000 10,000
To Administrative exp. 200 200
To Selling expenses 300 400
To Net profit 1,500 1,500

8,000 9,600 8,000 10,000

part C - (3 X 20 = 60 marks)

Earning:   Approval pending.