OCTOBER 2011 P/ID 28506/PCMF

Time : Three hours Maximum : 100 marks

PART A — (10 × 2 = 20 marks)

Answer ALL questions.

All questions carry equal marks.

Each answer should not exceed 50 words.

1. Define Cost Accounting.

AhUP ·í°U PnUQ¤µ & ¶íª¤Ë.

2. State four objectives of Cost Accounting.

AhUP Âø»U PnUQ¯¼ß ÷|õUP[PÎÀ |õßQøÚU TÖP.

3. What is Normal Loss?

\õuõµn CǨ¦ GßÓõÀ GßÚ?

4. Write the formula for calculating Abnormal Loss.

A\õuõµn©õÚ CǨø£U PnUQk® `zvµzøuU TÖP.

5. What is Inter-Process Profit?

£i•øÓPÎøh÷¯ C»õ£® GßÓõÀ GßÚ?

6. What is Process Costing?

–i•øÓ AhUP Âø»U PnUS •øÓ GßÓõÀ GßÚ?

7. What is Management Accounting?

÷©»õsø©U PnUQ¯À GßÓõÀ GßÚ?

8. What is Funds Flow Statement?

{v Kmh AÔUøP GßÓõÀ GßÚ?

9. What are Financial Statements?

{v{ø» AÔUøPPÒ ¯õøÁ?

10. What do you mean by a Budget?

vmhœ–mi¤µ GßÓõÀ GßÚ?

P/ID 28506/PCMF

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PART B — (5 × 6 = 30 marks)

Answer ALL questions.

All questions carry equal marks.

Each answer should not exceed 250 words.

11. (a) What are the objectives of Cost Accounting?

AhUPÂø» PnUQ¯¼ß ÷|õUP[PÒ ¯õøÁ?

Or

(b) In process A 100 units of raw materials were introduced at

a cost of Rs. 1,000. The other expenditure incurred by the

process was Rs. 602 of the units introduced 10% are

normally lost in the course of manufacture and the possess

a scrap value of Rs. 3 each. The output of process A was

only 75 units. Prepare process "A" A/C.

¹. 1,000 AhUPÂø» Ai¨£øh°À £i•øÓ A &US 100

A»SPÒ Aݨ£¨£kQÓx. £i•øÓ°À Cuµa ö\»ÄPÒ

¹. 602 Aݨ£¨£mh A»SPÎÀ 10% EØ£zv •øÓ°À

HØ£k® \õuõµn |mh©õP Gvº¨£õºUP¨£kQÓx. |mh¨

ö£õ¸øÍ A»S JßÖ ¹. 3 Ãu® ÂØP¨£kQÓx. £i•øÓ°À

HØ£mh EØ£zv 75 A»SPÒ £i•øÓ

""A'' PnUøPz u¯õ›UPÄ®.

12. (a) Distinguish between Cost Control and Cost Reduction.

AhUPÂø»U Pmk¨£õmiØS®, AhUP Âø»U SøÓ¨¦US®

EÒÍ ÷ÁÖ£õk ¯õøÁ?

Or

(b) Write short notes :

(i) Fixed budget.

(ii) Flexible budget.

SÔ¨ö£ÊxP :

(i) {ø»¯õÚ vmh¨£mi¯À

(ii) ©õÖ£mh vmh¨£mi¯À

P/ID 28506/PCMF

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13. (a) Write down the three types of scraps?

Gg]¯¨ ö£õ¸Îß ‰ßÖ ÁøPPøÍ GÊxP.

Or

(b) (i) Calculate break even point from the following :

Sales 1,000 units at Rs. 10 each.

Variable cost Rs. 6 per unit

Fixed cost of Rs. 8,000.

(ii) If the selling price is reduced to Rs. 9. What is the

new break even point?

(i) RÌUPõq® £µ[Pμ¸¢x C»õ£ |mh©ØÓ \©{ø»¨ ¦ÒÎø¯ PnUQkP.

ÂØ£øÚ 1,000 A»SPÒ ¹. 10 Ãu®

©õÖ® ö\»Ä A»QØS ¹. 6.

{ø»a ö\»Ä ¹. 8,000.

(ii) ÂØ£øÚ Âø»ø¯ A»QØS ¹. 9&US SøÓzuõÀ ¦v¯ »õ£|mh©ØÓ \©{ø»¨ ¦ÒÎ GßÚ?

14. (a) List the objectives of management accounting?

ì©°êsí©U PnUQ¤±Ô ÷|õUP[PøÍ £mi¯¼kP.

Or

(b) From the following particulars you are required to

calculate the average collection period for year 2009.

Total sales Rs. 1,00,000

Cash sales (included above) Rs. 20,000

Sales returns Rs. 7,000

Total debtors on (31.12.2009) Rs. 9,000

Bills receivable on (31.12.2009) Rs. 2,000

Provision for doubtful debts on (31.12.2009) Rs. 1,000

Total creditors on 31.12.2009 Rs. 10,000.

P/ID 28506/PCMF

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¤ßÁ¸® £µ[Pμ¸¢x 2009&® BskUPõÚ \µõ\› Á`À Põ»zøu PnUQkP.

ö©õzu ÂØ£øÚ ¹. 1,00,000

öµõUP ÂØ£øÚ (÷©¾ÒÍvÀ EÒÍh[Q¯x) ¹. 20,000

ÂØ£øÚz v¸¨£® ¹. 7,000.

ö©õzu PhÚõÎ 31.12.2009 ¹. 9,000

ö£ÖuØS›¯ ©õØÖa^mk 31.12.2009 ¹. 2,000

I¯UPhß JxUS 31.12.2009 ¹. 1,000

ö©õzu PhÜ¢÷uõº 31.12.2009 ¹. 10,000.

15. (a) What are the benefits of ratio analysis?

ÂQu B´Âß |ßø©PÒ ¯õøÁ?

Or

(b) From the following Information relating to Siva Ltd,

calculate funds lost in operations.

Net loss for the year Rs. 90,000

Dividend received Rs. 7,000

Depreciation charged Rs. 10,000

Profit on sale of asset Rs. 5,000

Refund of tax Rs. 2,000.

RÌUPõq® £µ[PøÍ öPõsk ]Áõ {ÖÁÚzvß ö\¯À£õmk {v |mhzøu PnUQkP.

{Pµ |mh® ¹. 90,000

£[Põu¯® ö£ØÓx ¹. 7,000

÷u´©õÚ® ¹. 10,000

ö\õzxUPÒ ÂØÓvÀ C»õ£® ¹. 5,000

Á› v¸®£ ö£ØÓx ¹. 2,000.

P/ID 28506/PCMF

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PART C — (5 × 10 = 50 marks)

Answer ALL questions.

All questions carry equal marks.

Each answer should not exceed 500 words.

16. (a) Explain the advantages of Cost Accounting.

AhUPÂø» PnUQ¯¼ß |ßø©PøÍ ÂÍUSP.

Or

(b) A product passes through two distinct processes A and B

and there after, it is transferred finished stocks. From the

following information you are required to prepare processes

accounts :

Particulars Process Process

A B

Material (Rs.) 12,000 6,000

Direct labour (Rs.) 14,000 8,000

Manufacturing expenses (Rs.) 4,000 4,000

Input in process A (tonns) 10,000 –

Input in process A (value) Rs. 10,000 –

Output (tonns) 9,400 8,300

Normal wastage (percentages) 5% 10%

Value of normal wastage (per 100 units) Rs. 8 10

J¸ EØ£zv C¸ ÁÈPÒ A ©ØÖ® B ø¯ Ph¢x •Ê¨ö£õ¸øÍ AøhQÓx. R÷Ç öPõkUP¨£mkÒÍ ÂÁµ[PøÍU öPõsk ÁÈ•øÓ PnUSPøÍ u¯õº ö\´¯Ä®.

£µ[PÒ ÁÈ•øÓ ÁÈ•øÓ

A B

‰»¨ö£õ¸Ò (¹.) 12,000 6,000

÷|µiU T¼ (¹.) 14,000 8,000

EØ£zva ö\»ÄPÒ (¹.) 4,000 4,000

£i•øÓ A &°ß EÒö\¾zxuÀ (hß) 10,000 –

£i•øÓ B &°ß EÒö\¾zxuÀ (¹.) 10,000 –

EØ£zv (hßPÎÀ) 9,400 8,300

\õuõµn |mh® (\uÃu®) 5% 10%

\õuõµn |mhzvß ©v¨¦ (100 A»QØS ¹.) 8 10

P/ID 28506/PCMF

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17. (a) Difference between Job Costing and process Costing.

£oÁÈ AhUPÂø» •øÓUS®, £i•øÓ AhUPÂø» •øÓUS® EÒÍ ÷ÁÖ£õkPøÍ GÊxP.

Or

(b) Following are the ratios, relating to the trading activities of

National Traders Ltd.

Debtors Velocity — 3 months

Stock velocity – 8 months

Creditors velocity – 2 months

Gross profit ratio – 25%.

Gross profit for the year ended 31.12.2008 amounted to

Rs. 4,00,000. Closing stock of the year is Rs. 10,000 above

the opening stock. Bills receivable amount Rs. 25,000 and

bills payable to Rs. 10,000. Find out

(i) Sales

(ii) Sundry debtors

(iii) Closing stock and

(iv) Sundry creditors.

÷|åÚÀ i÷µhºì ¼ªöhmiß Â¯õ£õµ |hÁiUøPPÐUPõÚ ÂQu[PÒ Á¸©õÖ :

PhÚõÎPÒ _ÇÀ ÷ÁP® – 3 ©õu[PÒ.

\µUQ¸¨¦ _ÇÀ ÷ÁP® – 8 ©õu[PÒ

PhÜ¢÷uõº _ÇÀ ÷ÁP® – 2 ©õu[PÒ

ö©õzu C»õ£ ÂQu® – 25%

31.12.2008 &À •iÁøh¢u Bsiß ö©õzu C»õ£® ¹. 4,00,000. CÖv \µUQ¸¨¦ Bµ®£ \µUQ¸¨ø£ Âh ¹. 10,000 AvP®. ÁµÄUS›¯ ©õØÖa^mk ¹. 25,000, ö\¾zxuØS›¯ ©õØÖa^mk ¹. 10,000.

(i) ÂØ£øÚ

(ii) £Ø£» PhÚõÎPÒ

(iii) CÖv \µUQ¸¨¦

(iv) £Ø£» PhÜ¢÷uõº BQ¯ÁØøÓU PnUQkP.

P/ID 28506/PCMF

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18. (a) What is budgetary control? What are its advantages?

vmh Pmk¨£õk GßÓõÀ GßÚ? Auß |ßø©PÒ ¯õøÁ?

Or

(b) The following details are available from a company

31.12.07 31.12.08 31.12.07 31.12.08

Rs. Rs. Rs. Rs.

Share capital 70,000 74,000 Cash 9,000 7,800

Debentures 12,000 6,000 Debtors 14,900 17,700

Reserve and

surplus

700 800 Stock 49,200 42,700

Trade creditors 10,360 11,840 Land 20,000 30,000

P & L A/C 10,040 10,560 Good

will

10,000 5,000

1,03,100 1,03,200 1,03,100 1,03,200

In addition you are given :

(i) Dividend paid total Rs. 3,500.

(ii) Land was purchased for Rs. 10,000

(iii) Amount provided for Amortisation Goodwill

Rs. 5,000.

(iv) Debentures paid off Rs. 6,000.

Prepare cashflow statement.

J¸ {ÖÁÚzvß Â£µ[PÒ R÷Ç öPõkUP¨£mkÒÍÚ

31.12.07 31.12.08 31.12.07 31.12.08

¹. ¹. ¹. ¹.

£[S•uÀ 70,000 74,000 öµõUP® 9,000 7,800

PhÜmk¨ £zvµ® 12,000 6,000 PhÚõÎPÒ 14,900 17,700

P/ID 28506/PCMF

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31.12.07 31.12.08 31.12.07 31.12.08

¹. ¹. ¹. ¹.

Põ¨¦ (©) E£› 700 800 \µUQ¸¨¦ 49,200 42,700

¯õ£õµ PhÜ¢÷uõº 10,360 11,840 {»® 20,000 30,000

C»õ£ |mh P/S 10,040 10,560 |Øö£¯º 10,000 5,000

1,03,100 1,03,200 1,03,100 1,03,200

Czxhß ÷\ºzx u[PÐUS öPõkUP¨£mhøÁ

(i) £[Põuõ¯® ö\¾zv¯x ¹. 3,500.

(ii) {»®, öPõÒ•uÀ ö\´ux ¹. 10,000.

(iii) |Øö£¯º GÊv }UQ¯x ¹. 5,000

(iv) PhÜmk¨ £zvµ® v¸¨¤a ö\¾zv¯x ¹. 6,000,

÷©ØTÔ¯ £µ[Pμ¸¢x öµõUP Kmh AÔUøPø¯z u¯õ›UP.

19. (a) Explain the functions of management accounting.

ì©°êsí© PnUQ¤¼ß £oPøÍ ÂÍUSP.

Or

(b) Draw up a flexible budget for production at 75% and 100%

capacity on the basis of the following data for a 50%

activity.

Details Per units

Rs.

Materials 100

Labour 50

Variable expenses (direct) 10

Administrative expenses (50% fixed) 40,000

Selling and distribution expenses (60% fixed) 50,000

Present production (50% activity) 1000 units

P/ID 28506/PCMF

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50% ö\¯Ø£õmiøÚ Ai¨£øh¯õPU öPõsk 75% ©ØÖ® 100% öPõÒÍÍÄ EÒÍ EØ£zvUPõÚ ö|QÌÄz ußø© vmh¨£mi¯À ÁøµP.

£µ[PÒ Jº A»QØS

¹.

ö£õ¸mPÒ 100

T¼ 50

©õÖ£k® ö\»Ä (÷|µi¯õÚx) 10

{ºÁõPa ö\»Ä (50% {ø»¯õÚx) 40,000

ÂØ£øÚ ©ØÖ® £QºÄ ö\»ÄPÒ (60% {ø»¯õÚx) 50,000

uØ÷£õøu¯ EØ£zv (50% ö\¯Ø£õk) 1000 A»SPÒ

20. (a) From the following information compute :

(i) Material price variance.

(ii) Material usage variance

(iii) Material mix variance.

Material Quantity units Standard std - unit price Total

Rs. Rs.

A 4 1 4

B 2 2 4

C 2 4 8

8 16

Material Quantity units Actual Actual unit price Total

Rs. Rs.

A 2 3.50 7.00

B 1 2.00 2.00

C 3 3.00 9.00

6 18

¤ßÁ¸® ö\´vPøÍU öPõsk

(i) ö£õ¸Ò Âø» ©õÖ£õmiøÚ²®

(ii) ö£õ¸Ò £¯ß£õmk ©õÖ£õmiøÚ²®

(iii) ö£õ¸Ò P»øÁ ©õÖ£õmiøÚ²® PnUQkP.

P/ID 28506/PCMF

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ö£õ¸Ò AÍÄ A»SPÎÀ {ø»¯õÚx {ø»¯õÚ Âø» ö©õzu®

J¸ A»QØS ¹. ¹.

A 4 1 4

B 2 2 4

C 2 4 8

8 16

ö£õ¸Ò AÍÄ A»SPÎÀ Esø©¯õÚx Esø© Âø» ö©õzu®

J¸ A»QØS ¹. ¹.

A 2 3.50 7.00

B 1 2.00 2.00

C 3 3.00 9.00

6 18

Or

(b) What are the Merits and Demerits of Standard Costing?

vmha ö\»Âß |ßø©PÒ ©ØÖ® wø©PÒ ¯õøÁ?

——————————