COST ACCOUNTING

Select any one out of 4 choices give below

Q1) Which kind of budgeting does not take into consideration previous figures as base.

a) Zero based budgeting

b) Sales budgeting

c) Fixed budgeting

d) Flexible budgeting

Q2) Which is the term used for internal transfers between profit centres.

a) Process costing

b) Standard costing

c) Transfer pricing

d) Marginal costing.

Q3) Labour cost variance means difference between

a) (Std. Time x Std Rate) ? (Actual Time x Act Rate)

b) (Std. Time x Act Rate) ? (Act Time x Act Rate)

c) (Std. Time x Std Rate) ? (Act Time x Std Rate)

d) (Std. Time x Act Rate) ? (Std Time x Std Rate)

Q4) Which of the factor is not relevant for cash flow :

a) Depreciation

b) Asset purchased.

c) Cash purchase made

d) Cash sales made

Q5) Calculate Fixed Cost when :

P. V. Ratio = 50%

Variable cost = Rs 10,000

Break even point = Rs 15,000

Q6) Calculate Break even point in units.

When ?

Fixed cost = Rs 20,000

Total units sold = 10,000 Nos.

Contribution per unit = Rs 2 per unit.

Q7) What is the formula to calculate current ratio.

Q8) Which method values stock at a variable cost level.

a) Absorption costing

b) Marginal costing

c) Target costing

d) Activity based costing.

Q9) Which of following plan summarises budget.

a) Master budget

b) Zero based budgeting

c) Fixed budget

d) Flexible budget

Q10) In which form of costing selling price is finalized first.

a) Target costing

b) Absorption costing

c) Total Quality Management

d) Activity based Costing

Q11) Differentiate between Absorption costing and Marginal costing.

Q12) Expenses of budgeted production of 20,000 units in Factory is as follows.

Rs. Per Unit

Material 140

Labour 50

Variable Overheads 40

Fixed Overheads 20

Variable Expenses (Direct) 10

Selling Expenses (10% Fixed) 26

Distribution Expenses (20% Fixed) 14

Admin Expenses 10

Prepare flexible budget for production of 16,000 units and 12,000 units.

Also find out cost per unit at each level.

Q13) Following details of A G Ltd are furnished for year 1996.

First 6 month Balance 6 months

Sales 45,000 50,000

Total Cost 40,000 43,000

Assume there is no change in price and variable cost and fixed expenses are incurred equally in

two half year periods. Calculate for year 1996.

1) Profit volume ratio.

2) Fixed expenses.

3) Break even sales

4) Margin of safety.

Q14) Labour budget of company for week is as follows :

20 men @ 50 paise p hr for 40 hr = 400

40 men @ 30 paise p hr for 40 hrs = 480

_______

880

======

Actual Labour was as follows :

30 men @ 50 paise for 40 hr = 600

30 men @ 35 paise for 40 hrs = 420

_______

1020

======

Analyse Labour Variances

Q15) Calculate break even point

1) S. price in Rs 20

2) Manufacturing vari cost Rs 10.

3) Selling variable cost Rs 5.

4) Fixed overheads = Rs 5,00,000

5) Selling overheads = Rs 2,00,000

AEREN FOUNDATION'S Maharashtra Govt. Reg. No.: F-11724 AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL SUBJECT : COST ACCOUNTING Total Marks : 80 Select any one out of 4 choices give below (2 Marks each X 10 ) (20 Marks) Q1) Which kind of budgeting does not take into consideration previous figures as base. a) Zero based budgeting b) Sales budgeting c) Fixed budgeting d) Flexible budgeting Q2) Which is the term used for internal transfers between profit centres. a) Process costing b) Standard costing c) Transfer pricing d) Marginal costing. Q3) Labour cost variance means difference between a) (Std. Time x Std Rate) (Actual Time x Act Rate) b) (Std. Time x Act Rate) (Act Time x Act Rate) c) (Std. Time x Std Rate) (Act Time x Std Rate) d) (Std. Time x Act Rate) (Std Time x Std Rate) Q4) Which of the factor is not relevant for cash flow : a) Depreciation b) Asset purchased. c) Cash purchase made d) Cash sales made Q5) Calculate Fixed Cost when : P. V. Ratio = 50% Variable cost = Rs 10,000 Break even point = Rs 15,000 Q6) Calculate Break even point in units. Page 1 Out of 1 When - Fixed cost = Rs 20,000 Total units sold = 10,000 Nos. Contribution per unit = Rs 2 per unit. Q7) What is the formula to calculate current ratio. Q8) Which method values stock at a variable cost level. a) Absorption costing b) Marginal costing c) Target costing d) Activity based costing. Q9) Which of following plan summarises budget. a) Master budget b) Zero based budgeting c) Fixed budget d) Flexible budget Q10) In which form of costing selling price is finalized first. a) Target costing b) Absorption costing c) Total Quality Management d) Activity based Costing Q11) Differentiate between Absorption costing and Marginal costing. (5 Marks) Q12) Expenses of budgeted production of 20,000 units in Factory is as follows. (15 Marks) Material Labour Variable Overheads Fixed Overheads Variable Expenses (Direct) Selling Expenses (10% Fixed) Distribution Expenses (20% Fixed) Admin Expenses Rs. Per Unit 140 50 40 20 10 26 14 10 Prepare flexible budget for production of 16,000 units and 12,000 units. Also find out cost per unit at each level. Q13) Following details of A G Ltd are furnished for year 1996. Sales Total Cost First 6 month 45,000 40,000 (15 Marks) Balance 6 months 50,000 43,000 Page 1 Out of 1 Assume there is no change in price and variable cost and fixed expenses are incurred equally in two half year periods. Calculate for year 1996. 1) Profit volume ratio. 2) Fixed expenses. 3) Break even sales 4) Margin of safety. Q14) Labour budget of company for week is as follows : 20 men @ 50 paise p hr for 40 hr = 400 40 men @ 30 paise p hr for 40 hrs = 480 _______ 880 ====== Actual Labour was as follows : 30 men @ 50 paise for 40 hr = 600 30 men @ 35 paise for 40 hrs = 420 _______ 1020 ====== (15 Marks) Analyse Labour Variances Q15) Calculate break even point 1) S. price in Rs 20 2) Manufacturing vari cost Rs 10. 3) Selling variable cost Rs 5. 4) Fixed overheads = Rs 5,00,000 5) Selling overheads = Rs 2,00,000 (10 Marks) Page 1 Out of 1