## Tuesday, October 25, 2011

### Dibrugarh University - Cost and Management Accounting 2011

1.    a) Explain the concepts of Cost Accounting. Explain how costs are classified in cost accounting.
OR
b) What are the nature and functions of management accounting? Discuss in detail.

2.     a) Describe in detail the essentials of material control for an industrial concern.
OR
b) For a certain work order, the standard time is 20 hours, wages Rs 5 per hour, the actual time taken is 13 hours and factory overhead charges are 80% of standard time. Set out a comparative statement showing the effect of paying wages according to
(i)   the Halsey bonus system, and
(ii) The Rowan incentive bonus system.

3.    a) What is Job Costing? What are the main features of job order costing? Give a proforma cost sheet under such a system.
OR
b) Explain normal loss, abnormal loss and abnormal gain and state how they should be dealt with in process cost accounts.

4.    a) “Marginal and differential costing can be used as a tool for management decision madding process.” Explain.
OR
b) Assuming that the cost structure and selling prices remain the same in period I and II, you are required to find out: Solution available here
(i) Profit –volume ratio
(ii) Fixed cost
(iii) Break-even point in sales
(iv)Profit when sales are of Rs 1, 00,000
(v) Sales required earning a profit of Rs 20,000
(vi) Margin of safety at a profit of Rs 15,000
(vii) Variable cost in period II
Period            Sales (Rs)                Profit (Rs)
I                     1, 20,000                 9,000
II                     1, 40,000                 13,000

OR
The expenses budgeted for production of 10,000 units in a factory is furnished below:

 Particualars Per Unit Materials                                                                      Labour Variable factory overheads Fixed factory overheads (Rs 1, 00,000) Variable expenses (direct) Selling expenses (10% fixed) Distribution expenses (20% fixed) Administrative expenses (Fixed Rs 50,000)                             Total cost of sales per unit 70 25 20 10 5 13 7 5 155
You are required to prepare a budget for the production of 6,000 and 8,000 units. Solution available here