Cma Final 2017 18

Seat No:______________ Enrollment No:______________
PARUL UNIVERSITY
FACULTY OF MANAGEMENT
MBA Remedial Winter 2017 - 18 Examination
Semester: 2 Date:09/01/2018
Subject Code: 06200151 Time: 02:00pm to 04:30pm
Subject Name: Cost & Management Accounting Total Marks: 60
Instructions
1. All questions are compulsory.
2. Figures to the right indicate full marks.
3. Make suitable assumptions wherever necessary.
4. Start new question on new page.
Q.1Do as Directed.
A).Multiple choice type questions/Fill in the blanks. (Each of 1 mark) (05)
1. In „make or buy‟ decision, it is profitable to buy from outside only when the supplier‟s price is below
the firm‟s own ____________________________.
a) Fixed cost c) prime cost

b) total cost d) opportunity cost
2. When actual loss in a process is less than Anticipated Loss, the difference is considered as
_____________________
a) Abnormal Loss c) Abnormal Gain
b) Normal Loss d) Normal Gain

3. Overhead refers to ____________________
a) Direct cost c) indirect cost
b) product cost d) None of the above.
4. Cost of Production equals to________________
a) Work Cost Plus Administrative Overhead c) Work overhead plus Administrative

Overhead
b) Prime Cost Plus Work Cost d) Prime Cost Plus Work Overhead
5. The P/v ratio of a company is 50% and margin of safety is 40%. Of sales. If present sales is Rs.
30,00,000 then Break Even Point in Rs. will be _________
a) Rs.900000 c) Rs.500000
b) Rs.18,00,000 d) Rs.589000
B).Define the following. (Each of 1 mark) (05)
1. Cost accountancy
2. Cost Unit
3. Cost Driver
4. Sunk Cost
5. Marginal cost
C).Direct questions. (05)
1.Abnormal Gain
2. Discretionary cost
3. Imputed Costs
Page 1 of 3
4. Cost Pool
5. Semi variable cost
Q.2Answer the following questions.
A).Distinguish between Time rate and Piece rate system of remuneration. (07)
B). The standard labour cost of manufacturing product shows the following standards: (08)
Materials Qty Standard Price Amount
A 40 Kgs 75 3000
B 10Kgs 50 500
C 50 Kgs 20 1000
The standard mix is 100 Kgs and the standard output of the finished product is 90 kgs. The actual
results for the period are:
A 240000 kgs 80 per /kg
B 40000 kgs 52 per/kg
C 220000 kgs 21 per/kg
The Actual output of the finished product is 420000 kgs. You are required to calculate: Material Cost
Variance, Material Price Variance, Material Usage Variance and Material Mix Variance.
Q.3Answer the following questions.
A). “Cost accounting system has emerged to overcome the deficiencies of Financial Accounting. Cost (07)
Accounting has proved to serve the organization for the purpose of cost control and cost reduction, but
despite this fact there are certain obligations against its installation.” Justify the statement by
explaining its advantages and obligations.
B). Krishna engineering works manufactured and sold 1000 units of sewing machines in the year 2015. (08)
The following are the particulars obtained from the records of the company:
Particulars Amount
Cost of Materials 80,000
Wages Paid 120000
Manufacturing Expenses 50000
Salaries 60000
Rent, Rates and Insurance 10000
Selling Expenses 30000
General Expenses 20000
Sales 400000
The company plans to manufacture 1200 sewing machines in the year 2016. You are required to
submit a Cost Sheet for the current period and a Tender Sheet showing the price at which the machine
would be sold so as to earn a profit of 10% on selling price. The following additional information is
supplied to you.
1. The price of the material will rise by 20% over the previous year‟s level.
2. Wages will rise by 5%.
3. Manufacturing expenses per unit will rise in the proportion to the combined cost of materials
and wages.
4. Selling price per unit will remain unchanged.
5. Other expenses will remain unaffected by the rise in output.
Page 2 of 3
Q.4Attempt any two questions. (Each of 7.5 mark) (15)
1.What are the main features of Job and Batch Costing? Distinguish between both the methods of costing
and list out the industries in which these techniques are applicable.
2.Write a note on ABC Analysis and EOQ.
3. Discuss the Bin Card Method and Store Ledger.
4. Distinguish between allocation, apportionment and absorption of overheads.
Page 3 of 3

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Seat No: Enrollment No:

A).Multiple choice type questions/Fill in the blanks. (Each of 1 mark) (05)

a) Fixed cost c) prime cost

b) Normal Loss d) Normal Gain

a) Work Cost Plus Administrative Overhead c) Work overhead plus Administrative

5. Semi variable cost

Q.2Answer the following questions.

Q.3Answer the following questions.

2.Write a note on ABC Analysis and EOQ.

3. Discuss the Bin Card Method and Store Ledger.

4. Distinguish between allocation, apportionment and absorption of overheads.

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