Acharya Nagarjuna University (ANU) 2006 M.Com Commerce IV - ADVANCED COST AND MANAGEMENT ACCOUNTING - Question Paper

M.Com. (Final) DEGREE EXAMINATION, DECEMBER 2006.
(A - ACCOUNTING)
Paper IV - ADVANCED COST AND MANAGEMENT ACCOUNTING

Time : 3 hours Maximum : 100 marks

part A - (5 X four = 20 marks)
ans any 5 of the subsequent.

1. (a) What is the scope of Cost Accounting?

(b) elaborate the objectives of Cost Accounting?

(c) Distinguish among costs, expenses and losses.

(d) What do you mean by absorption cost?

(e) elaborate the features of job costing?

(f) discuss the profit regarding to the uncompleted contract.

(g) What is meant by Learning Curve Effect?

(h) What is flexible budgeting?

(i) What is Factory Ledger?

(j) Life Cycle Costing Analysis.

part B - (4 X 10 = 40 marks)
ans any 4 of the subsequent.

2. Distinguish ranging from routine and special report. State the different matters which are sent to
management under routine and special reports.

3. The subsequent balances were shown in a cost ledger as at April 1, 2004:
Dr. Cr.
Rs. Rs.
Finished goods control account 20,000
Work-in-progress control account 40,000
Stores ledger control account 1,00,000
Cost ledger control account ----- 1,60,000

1,60,000 1,60,000

Transactions for the year ended March 31st. 2005 were:
Rs.
Purchase of materials 5,90,000
Purchase of materials for special jobs 36,000
Return to suppliers stores 4,000

Wages/Salaries paid: Rs.
Direct 4,10,000
Factory indirect 90,000
Administration staff 78,000
Selling and Distribution 48,000
Abnormal idle time 6,000
6,32,000
Expenses (Direct) 44,000
Production expenses 1,02,000
Administration Expenses 82,000
Selling and Distribution expenses 52,000
Materials issued to production 6,10,000
Materials lost by fire in stores 8,000
Stores issued to maintenance account 26,000

Production overhead recovered at 20%
on prime cost administration overhead
recovered from finished goods 1,56,000

Selling and Distribution overhead recovered
from cost of sales at 6.5% on sales value

Finished goods produced 13,20,000
Finished goods sold at cost 14,00,000
Sales 16,00,000

Write up necessary accounts in the cost ledger to record the above transactions and prepare a Trial Balance as at 31-3-2005.

4. elaborate the similarities and dissimilarities ranging from Absorption Costing and Marginal Costing?

5. The Rao Ink Ltd.s income statement for the preceding year is presented beneath. other than as noted, the cost/revenue relationship for the coming year is expexted to follow the the identical trend as preceding year. Income statement for the year ending March 31 is as follows:

Earning:   Approval pending.