Mohammad Arshadullah; AP, MED, DCET

DECCAN COLLEGE OF ENGINEERING & TECHNOLOGY

QUESTION BANK
UNIT – I Industrial Organization: Types of various business organisations. Organisation structures and their
relative merits and demerits. Functions of management. Plant location and layouts: Factors affecting the
location of plant and layout. Types of layouts and their merits and demerits.

SHORT ANSWER
Q.1 List out the merit and demerits of product layout.
Q.2 State the types of Business Organisation.
Q.3 Define the term Management and state its functions.
Q.4 List out the merits and demerits of Functional layout.
Q.5 List the factors influencing the selection of a business organization.
Q.6 Differentiate between administration and management.
Q.7 State the Functions of Management.
Q. 8 Define the term Plant Layout.
Q.9 Define Business Organization.
Q.10 List out various factors to be considered in plant layout.
Q.11 Differentiate between private limited company and public limited company.
Q.12 Draw fixed position layout and state its demerits.
Q.13 State the advantages of Private Limited Company.
Q.14 How is organizing different from organization.
Q15 What are the principles of plant layout?
Q.16 Sketch the Taylor’s type of organization structure.
Q.17 What are the advantages of locating an industry in a rural area?
Q.18 What is partnership deed? Write types of partners.
Q.19 Differentiate between share and debenture.
Q.20 State the type of Organization Structure.

LONG ANSWER
Q.21 What is the importance of Organisation structure? Explain the merits of Line and Staff
Organisation structure over Line type of organisation structure.
Q.22 Explain various factors affecting Layout.
Q.23 Define the term plant layout. What factors influence the design of the layout? State
the different types of layouts and explain any one with the help of sketch, stating its advantages
and limitations.

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 Mohammad Arshadullah; AP, MED, DCET
Q.24 Discuss the principle factors in selecting a location for an Industry, citing suitable example.
Q.25 Write short notes on the following
a) Organization Structure and their merits and demerits
b) Functions of Management
Q.26 What is the importance of Organization structure? Explain the merits of Line and Staff
Organization structure over Line or Military type of organization structure.
Q.27 Explain the prime factors which influence the selection of a site for a manufacturing industry with
relevant examples.
Q.28 Sketch and explain any three types of organization structure stating the main advantages and
disadvantages.
Q.29 What is partnership deed? Mention types of partners and compare partnership with sole
proprietorship.
Q.30 List out different types of organization structures and explain any one of them.
Q.31 List out and explain different types of plant layouts.
Q.32 Compare Line layout and Process Layout.
Q.33 Explain Line and Staff organization structure and state its merits and demerits.
Q.34 Explain various business organization and state their merits and demerits.
Q.35 Explain various factors effecting plant location and plant layouts.
Q.36 Distinguish between a public sector and private sector organization.
Q.37 What is the importance of organization structure? Explain the merits of line and staff organization
structure over line type of organization structure.
Q38 State and explain the principles of management.
Q.39 What are prime considerations in designing a plant layout? State the types of layouts.
Q.40 Differentiate between Process layout and Product layout with the help of neat sketch.
Q.41 Describe the Functions of Management in details.

The End

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 Mohammad Arshadullah; AP, MED, DCET
DECCAN COLLEGE OF ENGINEERING & TECHNOLOGY
(Affiliated to OSMANIA University)
Dept. of Electronics and Communication Engineering
Class: BE (ECE) V - Semester
Subject: Industrial Administration and Financial Management (HS104ME)

QUESTION BANK
UNIT – II Work Study: Definitions, objectives of method study and time study. Steps in conducting method
study. Symbols and charts used in method study. Principles of motion economy. Calculation of standard
time by time study and work sampling. Performance rating factor. Types of ratings. Jobs evaluation and
performance appraisal. Wages, incentives, bonus, wage payment plans.

SHORT ANSWER
Q.1 Define the term work study.
Q.2 Enumerate the various symbols used in method study.
Q.3 State the objectives of method study.
Q4 Briefly write about work sampling.
Q.5 What are various wage payment plans?
Q.6 List various wage incentive plans and explain Merick plan.
Q.7 State the factors considered in deciding performance rating factor.
Q.8 Write short note on Halsey plan of wage incentive.
Q.9 Write short note on Job evaluation and Merit rating.
Q.10 Define the term “Performance Rating Factor” used in work measurement.
Q.11 Sate the criteria for selection of a ‘New Job’ under ‘Select’ of method study.
Q.12 List out the types of ratings used in time study and describe anyone them.
Q.13 What do you understand by standard time? How you will calculate it?
Q.14 Explain the term ‘Work study’.
Q.15 Highlight the advantages of work study.
Q.16 Compare job evaluation and merit rating.
Q.17 State the advantages of Time study.
Q.18 What is SIMO chart?
Q.19 Differentiate between job evaluation and performance rating.
Q.20 Distinguish between the term Bonus, Wages and Incentive.
Q.21 To locate a steel manufacturing industry what important factors are to be taken into account.
Q.22 State the objectives of job evaluation.
Q.23 Describe a two-handed process chart.
Q.24 State the application of work study.
Q.25 List out the types of ratings used in time study and describes any one of them in brief.
Q.26 List out the symbols used in process chart.
Q.27 State the importance of job evaluation.

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 Mohammad Arshadullah; AP, MED, DCET
Q.28 List out symbols used in outline process chart and explain their meaning.
Q.29 Define work study and method study.
Q.30 What are the contributions of F. W. Taylor?
Q.31 Define the method study. Explain the procedure for carrying out the name.
Q.31 State the objectives of work sampling.
Q.32 Calculate the standard time from given data:
Observed time= 10.25min; PRF=110%; Allowances=10%

LONG ANSWER
Q.33 Explain various wage incentive plans
Q.34 How do you estimate standard time for a product?
Q.35 Explain the procedure involved in conducting
(a) Stop watch time study
(b) Work sampling
Q.36 Explain any two methods of job evaluation.
Q.37 Explain principle of motion economy related to work place layout.
Q.48 Explain the various procedural steps in conducting a method study.
Q.39 In assembling an electrical gadget, the observed time was 1.8 min. With a rating factor of 112%
and allowances of 5%. Calculate the standard time taken for the assembly of gadget.
Q.40 List out the charts used in method study and describes the symbols used in method study.
Q.41 Write notes on principles of motion economy.
Q.42 Describe the importance of job evaluation. Describe factor comparison method, point method of
job evaluation.
Q.43 State the different types (any three) of recording technique used in a work simplification
programme. Explain any one selecting a suitable example.
Q.44 Distinguish between Job evaluation and Merit Rating.
Q.45 What is job evaluation? Explain the point method of job evaluation.
Q.46 Explain Halsey plan of wage incentives.
Q.47 Write short notes on Symbols and Charts used in method study.
Q.48 How does symbol and charts help in deciding a method study? Explain with an example.
Q.49 Explain various types of factors considered in deciding performance rating factor of a work.
Q.50 Explain the following term used in work simplification programme
(a) Work sampling (b) Performance rating factor
Q.51 Distinguish between the following:
(a) Job evaluation and merit rating
(b) Work simplification and work measurement
Q.52 Explain the procedure to calculate the standard time.
Q.53 What is meant by Job evaluation? Explain any one method of evaluation a given job.
Q.54 Write short notes on ‘Various recording techniques used in a method study programme.
Q.55 Explain the concept of ‘Job Evaluation’. How it helps in fixing wage for a job under consideration.
Q.56 Explain the procedure in calculating the standard time in a production process.

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 Mohammad Arshadullah; AP, MED, DCET
Q.57 Distinguish between Straight line method and differential wage payment plan.
Q.58 State the principles of motion economy related Human Body.
Q.59 A preliminary study indicates that the proportion of idle time of a machine is 30%, rest of the time
it is working. To get a good estimate of the idle time as a fraction with precision of ±2 at 95%
confidence level what should be the sample size?
Q.60 Calculate standard time for the following.
i) Observed time: 12min ii) Performance rating factor: 140%
iii) Performance allowance: 5% iv) Contingency allowance: 2% of observed time.
Q.61 Explain various types of principles of motion economy.
Q.62 Explain stop watch procedure for collecting time study data.
Q.63 Explain the importance of job evaluation and performance appraisal for a service organization.
Q.64 Describe different performance rating systems used in practice.
Q.65 What is “Work measurement”? Explain the methodology of stop-watch technique to carry-out
the study?
Q.66 Write short notes on the Wage Payment Plan (any three)
Q.67 Explain the rules of motion economy.
Q.68 Define the term “Work study” state its advantage and application.
Q.69 Calculate standard time for the following data
Observed time = 13.4 min
Performance rating factor = 130%
Performance allowance = 5%
Fatigue allowance = 10% of observed time Delay allowance = 7%
Q.70 What are the contributions of Frank Gilbreth?
Q.71 What is performance rating factor and various types of Ratings.
Q.72 Explain two handed process charts with suitable example.
Q.73 An operator was kept under observation for 10 days. He was found working on 400 occasions and
abstaining including idle 100 times. He produced 200 jobs during these days. The observation per
day was for 5 hours only and the total number of observations was 500. Take 120 as performance
rating factor for operator and 20% as allowances. Calculate standard time.
Q.74 An operator works for eight hours a day. A work sampling study shows that he was idle 15% of
the day and that he worked the remainder of the day at an average performance index of 110%.
The record shows that he turned out 420 pieces of acceptable quality during the day. Find the
standard time per piece. Assume 15% allowances.
Q.75 Explain briefly wage payment plan.
Q.76 Explain the characteristics of a good wage system.

The End

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 Mohammad Arshadullah; AP, MED, DCET
DECCAN COLLEGE OF ENGINEERING & TECHNOLOGY
(Affiliated to OSMANIA University)
Dept. of Electronics and Communication Engineering
Class: BE (ECE) V - Semester
Subject: Industrial Administration and Financial Management (HS104ME)

QUESTION BANK
UNIT – III Inspection and Quality Control: Types and objectives of inspection S.Q.C, its principles. Quality
control by chart and sampling plans. Quality circles, introduction to ISO.

SHORT ANSWER
Q.1 State the objectives of work sampling.
Q.2 Draw OC curve and mark salient points on it.
Q.3 What is the importance of quality circles?
Q4 Calculate the control limits for R charts required data are given below:
X̅=17.5, R̅ =0.5, AZ=0.18, D3=0.41, D4=1.59
Q.5 State the objectives of S.Q.C.
Q.6 Compare inspection and acceptance sampling.
Q.7 What are the different types of Inspection?
Q.8 Define Quality Circles.
Q.9 State the types and objectives of Inspection.
Q.10 What are the principles of SQC?
Q.11 What is meant by ISO?
Q.12 Differentiate variable and attribute.
Q.13 How ISO is beneficial for product industry?
Q.14 Differentiate between variable data and attribute data and give example for each one.
Q.15 Write short notes on ISO.
Q.16 Explain the concept of Quality circle.
Q.17 What are the different kinds of Inspection?
Q.18 Find the control limits for X̅ chart from the following data.
No. of samples=5 Σx=100 ΣR=30
The constant for this sample size is A₂=0.58 D₃=0 D₄=2.11
Q.19 What is an operating characteristic curve? State its importance.
Q.20 Differentiate between inspection and SQC.
Q.21 Sketch the following charts, state the control limits
a) R̅ chart b) P̅ chart
Q.22 State the simple example how the principles of SQC are used in quality control.
Q.23 Sketch the following Q.C.C. stating the control limits:
a) X̅-R chart b) C̅ chart
Q.24 State the goals of “Quality Circles”.
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 Mohammad Arshadullah; AP, MED, DCET
Q.25 Calculate the control limits for a P chart from the following data:
In 10 days, no. of pieces inspected/day was 300 and no. of defectives found was 300.
LONG ANSWER
Q.26 Differentiate between 100% inspection and acceptance sampling.
Q.27 Explain the importance of ISO for a manufacturing organization.
Q.28 Draw O.C. curve and mark salient points on it and explain each point in detail.
Q.29 The current capacity in Ampere of 5 random samples from each batch is recorded. There are 10
sub batches. Construct X̅ and R chart and comment.
Sl.
X₁ X₂ X₃ X₄ X₅
No.
1 43 61 64 69 72
2 46 54 67 71 79
3 18 23 74 76 81
4 37 49 56 67 70
5 41 44 64 70 74
6 21 24 23 45 51
7 56 61 61 62 84
8 25 38 40 46 71
9 24 34 46 51 66
10 33 38 40 49 58

Q.30 Explain the double sampling plan by means of a flow chart.

The END

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 Mohammad Arshadullah; AP, MED, DCET
DECCAN COLLEGE OF ENGINEERING & TECHNOLOGY
(Affiliated to OSMANIA University)
Dept. of Electronics and Communication Engineering
Class: BE (ECE) V - Semester
Subject: Industrial Administration and Financial Management (HS104ME)

QUESTION BANK
UNIT – IV Optimization: Introduction to linear programming and its graphical solutions. Assignment
problems. Project Management: Introduction to CPM and PERT. Determination of critical path. Material
Management: Classification of materials, Materials planning. Duties of purchase manager. Determination
of economic ordering quantities. Types of materials purchase.
SHORT ANSWER
Q.1 Differentiate between CPM and PERT.
Q.2 With respect to the network analysis chart, explain the following terms:
(a) Event (b) Critical Activity (c) Dummy activity
Q.3 State the standard form of linear programming and its assumptions.
Q.4 State the importance of float in project management. Also define free float.
Q.5 Write the standard form of linear programming and state their application.
Q.6 Where do you use assignment problem?
Q.7 What is meant by a basic feasible solution in linear programming?
Q.8 Write short notes on Optimization.
Q.9 How linear programming techniques useful in industrial administration?
Q.10 State the necessary conditions where PERT is applied in a network analysis.
Q.11 State the basic rules for constructing a Network analysis.
Q.12 List the assumptions of LPP.
Q.13 Distinguish between ‘Activity’ and ‘Event’.
Q.14 Mention the major factors considered in PERT planning techniques.
LONG ANSWER
Q.15 Identify critical path and calculate total float on each activity for the following project.
Activity 1-2 1-3 1-4 2-5 3-5 3-6 4-6 5-7 6-7 7-8
Duration in (days) 2 3 6 2 3 5 4 7 8 9
Q.16 Solve the following LPP graphically:
Minimize Z = 4a + 2b
ST 3a + 1b ≤ 27
-1a -1b ≤ -21
1a + 2b ≥ 30 (both a and b are ≥ 0)
Q.17 Determine the critical path for the following project
Activity 1-2 2-3 2-4 2-5 3-5 4-5 5-6
Time days 16 7 12 10 6 16 18

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 Mohammad Arshadullah; AP, MED, DCET
Q.18 There are 5 jobs namely A, B, C, D and E. Then are to be assigned to 5 machines P, Q, R, S, and T to
minimize the cost of production. The cost matrix is given below design the jobs to machine on
one to one basis.
A B C D E
P 8 7 4 11 6
Q 10 5 5 13 7
R 6 9 8 7 12
S 6 7 2 3 2
T 7 8 8 10 5
Q.19 Solve the following L.P.P by graphical method.
Maximize Z = 6x₁ + 8x₂
Subject to conditions 2x₁ + 4x₂ ≤ 60 4x₁ + 2x₂ ≤ 48 x₁, x₂ ≥ 0
Q.20 Construct network diagram and identify the critical path for the following project. If the activity
5-6 is delayed by 2 days what is the affect on project completion?
Activity 1-2 1-3 2-3 2-5 3-4 3-6 4-5 4-6 5-6 6-7
Duration (Weeks) 15 25 3 5 8 12 1 14 3 14
Q.21 Find the minimum value of Z = 4x₁ +2x₂ by graphical method subject to the constraints:
x₁ + 2x₂ ≥ 2 3x₁ +x₂ ≥ 3 4x₁ + 3x₂ ≥ 6 and x₁, x₂ ≥ 0
Q.22 The following table gives a list of activities and their duration.
Activity 1-2 2-5 1-3 1-4 3-5 4-6 5-6
Duration in days 8 10 4 6 6 8 4
You required to:
1) Draw the network diagram
2) Find EST, EFT, LST, LFT and float of each activity
3) Identify critical path
4) Calculate project completion time
Q.23 Four machine namely lathe, milling, grinding and drilling machine are to be repaired by four
maintenance operators who can perform all the jobs but differ in their efficiency and the task
differ in their intrinsic difficulty. The estimates of the times each man would take to perform each
is given below in the matrix:
Machine
Lathe Milling Grinding Drilling
Operator
Venkat 8 24 17 11
Shyam 13 28 4 26
Sunder 38 19 18 15
Raju 19 26 24 10
How the repair tasks should be allocated to the operators to minimize the total man-hours.

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 Mohammad Arshadullah; AP, MED, DCET
Q.24 A small engineering project consist of nine activities. Draw the network. Calculate EST and LST of
each activity. Calculate total slack for each activity.
Time
Immediate
Activity duration
predecessor
(days)
1-2 6 ---
2-3 13 1-2
1-6 5 ---
6-7 11 1-6
7-8 15 6-7
2-4 4 1-2
3-5 11 2-3
4-5 6 2-4
5-8 3 3-5, 4-5
Q.25 Draw the network diagram for the following project data. Find out the minimum time required to
complete the project. Identify critical path.
Activity A B C D E F G H I J K
Preceding Activity - - - B C A D, E D, E F, G H I, N
Duration (months) 8 5 13 12 6 6 7 9 8 2 6
Q.26 Maximize Z = 1.2x₁ + 1.4x₂
Subject to 40x₁ + 25x₂ ≤ 1000 5x₁ + 4x₂ ≤ 140 5x₁ + 7x₂ ≤ 175 x₁, x₂ ≥ 0
Q.27 Bring out the difference between PERT and CPM.
Q.28 For the network given below, find the initial path.
Activity a b c d e f g h i
Duration 1 5 2 1 1 2 3 1 1
Predecessor - a a b, c a, b d e, f g h
Q.29 Solve the material transportation problem between sources to destinations for minimum cost.
Destination
E F G H
A 3 7 1 4
Sources

B 7 4 3 8
C 4 5 7 9
D 3 3 1 2
Q.30 Maximize: Z = 10X + 5Y
Subject to: 4X + 5Y ≤ 100 2X + 4Y ≤ 80 X₁, X₂ ≥ 0
Q.31 Explain the various steps to be followed in constructing network diagram.
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 Mohammad Arshadullah; AP, MED, DCET

Q.32 Why CPM is called deterministic model and PERT as probabilistic model, with respect to CPM and
PERT what do you know about the following:
i) Dummy activity ii) Critical path iii) Standard time
iv) Beta-Distribution v) Forward vs Backward pass
Q.33 Give an example of a LPP with unbounded solution. What are ‘Non-Negative’ and ‘Redundant’
constraints in LPP.
Q.34 What is meant by a “feasible solution” to a linear programming problem.
Q.35 Solve the following assignment problem.
Job
I II III IV
A 18 26 17 11
Worker

B 13 28 14 26
C 38 19 18 15
D 19 26 24 10
Q.36 Draw the network for the following project and compute the critical path time and total float on
each activity.
Activity A B C D E F G H I
Duration (days) 5 4 6 2 1 7 8 4 3
Immediate
- - A B C C, D E F G, H
predecessor
Q.37 Maximize Z = 2X + 5Y
When X ≤ 4, Y ≤ 6, X + Y ≤ 8, X, Y ≥ 0
Q.38 Find the values of x₁ and x₂ to
Maximize Z = x₁ - x₂
Subject to 3x₁ + 2x₂ ≥ 12 2 ≤ x₁ ≤ 6, 0 ≤ x₂ ≤ 4 Use graphical method.
Q.39 Find the optimum assignment for minimum total cost for the following:
Machines
P Q R S
A 15 13 14 17
B 11 12 15 13
Jobs

C 13 12 10 11
D 15 17 14 16

The End

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 Mohammad Arshadullah; AP, MED, DCET
DECCAN COLLEGE OF ENGINEERING & TECHNOLOGY
(Affiliated to OSMANIA University)
Dept. of Electronics and Communication Engineering
Class: BE (ECE) V - Semester
Subject: Industrial Administration and Financial Management (HS104ME)

QUESTION BANK
UNIT – V Cost Accounting: Elements of cost. Various costs. Types of overheads. Breakeven analysis and its
applications. Depreciation. Methods of calculating depreciation fund. Nature of financial management.
Time value of money. Techniques of capital budgeting and methods. Cost of Capital, Financial leverage.
SHORT ANSWER
Q.1 Give two applications of break-even chart.
Q.2 How do you measure Financial leverage?
Q.3 Explain the term Financial leverage and time value of money.
Q.4 The direct material and indirect labour cost in a manufacturing industry was Rs. 80,000/- and
Rs. 20,000/- respectively. While the indirect material and indirect labour was Rs. 30,000/- and
Rs. 10,000/- respectively. The selling on cost was 10 percent of the prime cost. Calculate the total
cost of production.
Q.5 What is the difference between cost control and cost reduction?
Q.6 Explain the concept of time value of money.
Q.7 Mention any three examples of expenses that are include as Administrative on cost.
Q.8 State at least three method how the “on cost” are distributed.
Q.9 Sketch the Break-even analysis chart and B.E.P.
Q.10 What does a budget reflects?
Q.11 Explain briefly the techniques of capital budgeting.
Q.12 Calculate the prime cost from the following data, direct labour cost Rs. 50,000/-, Direct Material
cost Rs. 60,000/-, Direct expenses Rs. 10,000/-, Indirect Expenses Rs. 20,000/-.
Q.13 Discuss the importance of capital budgeting.
Q.14 Explain how the selling price of a product is determined.
Q.15 How financial leverage is helpful in decision making.
Q.16 What are the elements of costs?
Q.17 What is time value of money?
Q.18 Explain Diminishing balance method of depreciation.
Q.19 What are the various types of over-heads?
Q.20 What is Break-even point?
Q.21 Explain the nature of Financial Management.
Q.22 What are the assumptions in break-even analysis.
Q.23 Write about cost of capital.
Q.24 Explain various overheads of an organization.
Q.25 List the methods of capital budgeting.
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 Mohammad Arshadullah; AP, MED, DCET
Q.26 Derive the expression for BEP stating assumptions.
Q.27 Define the term “on cost”. State the different types of “on cost”.
Q.28 Define the terms depreciation and state the causes of it.
Q.29 An electronic instrument was purchased for Rs. 85,000/- the transport and erection charges
amounted to Rs. 5,000/-. The estimated life of the product was 5 years calculate the annual rate
of depreciation.
Q.30 Mention the salient factors to be considered for preparing a capital budget in any manufacturing
industry.
Q.31 What is the difference between NPV and IPR.
Q.32 How Prime cost differs from Factory cost?

LONG ANSWER
Q.33 Explain break even analysis by graphical method and analytical method.
Q.34 Explain time value of money by taking suitable example.
Q.35 Explain the concept of Break-even analysis and its importance.
Q.36 The fixed cost of the year 2007-08 for a particular product in a manufacturing industry was Rs.
80,000/- the estimated sales for the period was Rs. 40,000/-. The variable cost is Rs. 4/- unit and
selling price per unit of the product is Rs. 20/-. Construct Break-even chart and mark the various
costs.
Q.37 Estimate selling price per unit of electronic component. Following information is for 250 items:
Direct material cost is Rs. 75, 000/-, Direct labour cost is Rs. 45,000/-, direct expense are Rs.
15,000/-, factory on cost is 15%, selling distribution expense are 10%, assume profit is 22%.
Q.38 What is meant by depreciation? State its causes.
Q.39 An electronic instrument was purchased for Rs. 80,000/- and its useful life is estimated to be 10
years. The scrap value is estimated to be Rs. 16,000/-. Calculate by using the diminishing balance
method the following:
(i) Percentage by which value of the instrument is reducing each year.
(ii) Value of the instrument at the end of three years.
Q.40 How break-even analysis is useful for business organization.
Q.41 Estimate selling price per unit of electronic component. Following information is for 300 items:
Direct material cost is Rs. 1,50,000/- Direct labour cost is Rs. 85,000/- direct expense are
Rs. 3,25,000/- factory on cost is 15% selling distribution expense are 10% assume profit is 17%.
Q.42 Write short notes on nature and scope of financial management.
Q.43 Describe various types of overheads. How is selling price of product is determined?
Q.44 What are elements of Cost? If the direct labour cost, direct material cost and factory overheads
are in the ratio of 4: 5: 1 and selling expenditure is 20 per cent of factory cost. Calculate the cost
price, if factory overheads are Rs. 50,000/-.
Q.45 The annual sales of a firm are Rs. 2,60,000/- its total variable costs are Rs. 1,90,000/- and total
fixed costs are Rs. 35,000/-. Determine break-even volume in rupee sales.
Q.46 What are elements of costs and state the various types of “on costs”.
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 Mohammad Arshadullah; AP, MED, DCET

Q.47 The first cost of an equipment is Rs. 50,000/-. It produces annual cash inflows as follows:
Year 1 2 3 4 5
Cash inflow (Rs.) 12,000 15,000 20,000 20,000 10,000
Calculate the Net present value when the time value of money is 10 percent per annum.
Q.48 Explain with the help of a chart, the meaning of break-even point. Derive making necessary
assumption the expression for calculate the B.E.P.
Q.49 Explain the following terms used in cost accounting: (a) Prime Cost, (b) Indirect Cost
For manufacturing 120 units of a product, the following expenditure incurred. Calculate the
selling price for 1 unit, if profits are 20 percent:
Direct material cost = Rs. 1,80,000/-
Direct labour cost = Rs. 70,000/-
Factory on cost = 20 percent
Administrative overheads = 25 percent of the prime cost

Q.50 Distinguish ‘Direct cost’ from ‘Indirect cost’. With respect to a bolt manufacturing identify any two
Direct and Indirect costs.
Q.51 State any two assumptions of BEA. Calculate sales, Break-even sales, fixed cost and Profit if
margin of safety Rs. 10,000 representing 40% of sales and 50% is P/V ratio.
Q.52 A company has to choose one of the following two mutually exclusive projects. Investment
required for each project is Rs. 15,000/-. Both the projects have to be depreciated on Straightline
basis. The tax rate is 50%.
Year Profit before depreciation
Project A (Rs.) Project B (Rs.)
1 4,200 4,200
2 4,800 4,500
3 7,000 4,000
4 7,000 5,000
5 2,000 10,000
Calculate Pay-Back period.
Q.53 Define the term Depreciation. State the causes for it an electronic instrument was purchased for
Rs. 3,20,000/-. Its estimated life was 10 years. The residual value was Rs. 80,000/-
Calculate i) Annual depreciation rate
ii) The value of the instrument at the end of two years.
Derive the formula used.
Q.54 Explain the causes of depreciation and any two methods of depreciation.
Q.55 Explain the importance of a break-even analysis.
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 Mohammad Arshadullah; AP, MED, DCET

Q.56 The following table gives information regarding the two mutually exclusive projects X and Y
Period Net cash flows from project Net cash flows from project
X Y
0 -700 -700
1 450 410
2 450 410
3 300 250
i) Compute the NPV at 10% discount rate
ii) Compute I.R.R
Q.57 A factory produces only one kind of item, which is sells for Rs. 12.50 per unit. It has a fixed cost
equal to Rs. 60,000/- and variable cost Rs. 7.50/- per unit. Calculate the B.E.P.
Q.58 A machine costing Rs. 24,000/- was purchased. The installation and erection charges were
Rs. 1000/- and its useful life is expected to be 10 years. The scrap value of machine after 10 years
was Rs. 5000/- calculate the annual rate of depreciation.
Q.59 Explain sinking fund and sum of year’s digit method of depreciation.

The End

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