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com IMT 58 Management Accounting M2 PART - A Q1. State three points of similarities between financial accounting and cost acc ounting. Q2. Prepare a chart showing the different elements of cost. Q3. What is cost centre and does it related to cost units. Q4. What is the difference between allocation and apportionment of overheads? Q5. Discuss the importance of machine hour rate as a basis for the absorption of factory overheads. PART - B Q1. Give four points essential of job costing. Q2. Describe briefly the main features of process costing. Name the industries w here process costing can be applied. Also compare process costing with job costi ng. Q3. What is absorption costing? Give the main limitations of absorption costing. Q4. Define cost-volume profit analysis and explain its main features. Q5. From the following particulars, calculate all material variances. Standard Actual Qty. Kgs. Price Qty. Kgs. Price A 10 8 10 7 B 8 6

9 7 C 4 12 5 11 PART - C Q1. Distinguish between a. Budgetary control and standard costing b. Standard cost and standard costing c. Standard costing and estimated costing d. Basic standard and current standard Q2. Compare and contrast differential cost analysis and marginal costing. Q3. A product passes through three processes. During March, 2011, 1,000 finished units are produced with the following expenditure: Process A (Rs.) Process B (Rs.) Process C (Rs.) Direct Material 1,500 2,600 2,600 2,000 Direct Labour 5,000 4,000 4,000 3,000 Overhead expenses amounted in all to Rs. 6000. They are to be apportioned on the

basis of direct wages. Main raw materials issued to Process A (besides above) w ere worth Rs. 6,000. Ignoring the question of stock prepare the Process Accounts concerned. Q4. From the following particulars calculate (i) Contribution (ii) P/V Ratio (ii i) Break even point in units and in rupees. (iv) What will be the selling price per unit if the break even point is brought down to 25, 000 units? Fixed expenses Rs.2,50,000 Variable cost per unit Rs. 12 Selling price per unit Rs.18 Q5. Define the term 'budget' as used in cost accounting, and explain what is mea nt by 'budgeting control'. FOURTH SET OF ASSIGNMENTS Assignment-IV = 2.5 Each Case Study CASE STUDY - I CASE STUDY - I Two manufacturing companies which have the following operating details decided t o merge: Company No. 1 Company No.2 Capacity utilization (%) 90 60 Sales (Rs. lakhs) 540 300 Variable costs (Rs. lakhs) 396 225 Fixed costs (Rs. Lakhs) 80 50 Assume that the proposal is implemented, calculate: Break even sales of the merged plant and the capacity at that stage. Profitability of the merged plant at 80% capacity utilization. Sales turnover of the merged plant to earn profit of Rs. 75 lakhs. When the merged plant is woking at a capacity t earn a profit of Rs. 75 lakhs wh at percentage increase in selling price is required to sustain an increase of 5% in fixed overheads. CASE STUDY - II ASE STUDY-II The cost sheet of a product is given as follows: Rs. Direct Materials 10 Direct Wages 5 Factory overheads Fixed 1

Variable 2 Administration expenses 1.5 Selling & Distribution Overheads Fixed 0.5 Variable 1 __________ 21 __________ The selling price per unit is Rs. 25. The above figures are for an output of 50, 000 units whereas the capacity of the firm is 60,000 units. A foreign customer i s desirous of buying 10,000 units at a price of Rs. 19 per unit. The extra cost of exporting the product is Re. 0.5 per unit. Advise the manufacturer as to whet her the order should be accepted. Contact www.solvedhub.com for best and lowest cost solution or email solvedhub@g mail.com