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.
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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
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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)
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