P/ID 28506/PCMF

OCTOBER 2012
Time : Three hours

Maximum : 100 marks

PART A (10 2 = 20 marks)
Answer ALL questions.

All questions carry equal marks.

Each question should not exceed 50 words.
1.

What is Cost?

AhUP G G?
2.

Define Spoilage.

\u CUPn P.
3.

What do you mean by Inter process profit?

iPh C G G?
4.

What is Flexible budget?

mk mm G G?
5.

What do you mean by normal loss?

C C } Ax x?
6.

What is Direct Labour?

|i T G G?
7.

What do you mean by operating costing?

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8.

Write the formula for calculating Abnormal gain.

A\un Czu PsQk `zvzuU TP.

9.

What is Management Accounting?

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10.

What do you mean by cash flow statement?

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PART B (5 6 = 30 marks)
Answer ALL the questions.
All questions carry equal marks.
Answer to theory question should not exceed 250 words.
11.

(a)

Calculate fund from operations from the following P and L

A/C.
Rs.
Rs.

To Exps. Paid

1,00,000 By Gross profit

2,00,000

To Depreciation

40,000 By Gain of sale of machinery

To loss on sale of
building

15,500

To Discount

500

To Goodwill

12,000

To Net Profit

52,000
2,20,000

20,000

2,20,000

RUPq C |mh PnUQx \mk {v

PnUQh.
.
.
\P

1,00,000

40,000

Pmih |mh

15,500

ui

500

12,000

{P C

52,000

zu C

2,00,000

Cv C

2,20,000

20,000

2,20,000

Or
(b)

What are the functions of Cost Accounting?

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12.

(a)

Opening stock Rs. 56,000

Closing stock Rs. 24,000
Sales Rs. 4,00,000
Gross profit ratio 30% on sales
Calculate stock turnover Ratio.
2

P/ID 28506/PCMF

B \UQ . 56,000
Cv \UQ . 24,000
. 4,00,000
zu C Qu 30%
\US Jmh Qu PnUQkP.
Or
(b)

What are the Limitation of Ratio analysis?

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13.

(a)

From the following information relating to Palani Brothers

Ltd. you are required to findout.
(i)

P/V Ratio

(ii)

Break even point

(iii) Profit
(iv)

Margin of safety

(v)

Volume of sales to earn profit of Rs. 6,000.

Rs.
Total Fixed Costs

4,500

Total Variable Costs

7,500

Total Sales

15,000

\PuP {zv PkUPmk [PU

Psk Pski
(i)

[P Qu

(ii)

|mh

(iii) C
(iv)

xP G

(v)

Qhzu C . 6,000.
zu { \ . 4,500
zu k \ . 7,500
zu . 15,000
Or
3

P/ID 28506/PCMF

(b)

What are the benefits of Fund Flow Statement?

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14.

(a) Calculate the material mix variance from the following :

Material
Std
Actual
A

90 units @ Rs. 12 each 100 units @ Rs. 12 each

60 units @ Rs. 15 each

\vPU
mi PsP.

{x

50 units at Rs. 16 each

Psk

Esx

90 ASP J AS . 12 100 ASP J AS . 12

60 ASP J AS . 15

(b)

50 ASP J AS . 16

Or
What are the advantages of process costing?

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15.

(a)

In process B 75 units of a commodity were introduced at

a cost of Rs. 1,310. The additional expenses incurred by the
process were Rs. 190. of the units introduced 10% are
normally lost in the course of manufacture and they
possess a scrap value of Rs. 4 each. The output of the
process was 70 units. Prepare process B A/C.
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BUPkQx. i Cu \ . 190.
BUPmh 10% \un |mh. Cu
v AS JS . 4 i Ezv 70
ASP, i B PnUQz uUP.
(b)

Or
Discuss the scope of Management Accounting.

s PnUQ |UP G .

16.

PART C (5 10 = 50 marks)
Answer ALL the questions.
All questions carry equal marks.
Answer to theory question should not exceed 500 words.
(a) The expenses for Budget production of 10,000 units in a
factory are as follows :
Particulars
Per unit
Rs.
Material

70

Labour

25

Variable overhead

20
4

P/ID 28506/PCMF

Particulars

Per unit
Rs.

Fixed overhead (Rs. 1,00,000)

10

Variable expenses

Selling exps. (10% Fixed)

13

Distribution exp. (20% Fixed)

Admn. exps. (Rs. 50,000)

Total cost per unit

155

Prepare a flexiable budget for

(i)

8000 units and

(ii)

6000 units.

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\P :
[P
J AQS
.

70

25

\P

20

{ \P (. 1,00,000)

10

\P (|i)

\P (10% {x)

13

{P \P (20% {x)

{P \P ({x . 50,000)

5
155

(i)

8000 ASP

(ii)

6000 ASP
uUP.

uuP

|Q

vmhzu

Or
(b)

Explain the Essentials of a Good costing system.

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17.

(a)

From the following information compute :

(i)

material cost variance

(ii)

material usage variance

5

P/ID 28506/PCMF

Material

Std

Actual

Qty Price Total Qty Price Total

A

10

20

15

20

60

10

60

20

120

15

75

Total

50

200

30

150

\vPU Psk
(i)

AhUP mi

(ii)

mk mi PnUQk
{x
Esx

A zu A zu
A

10

20

15

20

60

10

60

20

120

15

75

zu

50

200

30

150

Or
(b)

Explain the functions of Management Accounting.

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18.

(a)

From the following particulars prepare a statement

showing the proprietors find as on 31.12.2010
(i)

Current Ratio : 2.5 : 1

(ii)

Acid Test Ratio : 1.5 : 1

(iii) Fixed Assets to proprietary fund 0.75 : 1

(iv)

Working capital Rs. 60,000

(v)

Reserve and surplus Rs. 40,000

(vi)

Bank overdraft Rs. 10,000.

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J 31 i\ 2010 Ei u \.
(i)

|h Qu - 2.5 : 1

(ii)

Pkg \u Qu 1.5 : 1

(iii) { \zx, [Su {v vP 0.75 : 1

6

P/ID 28506/PCMF

(iv)

|h u . 60,000

(v)

JxUS, P . 40,000

(vi)

[Q AvP . 10,000.
Or

(b)

Explain the disadvantages of Budgetary control.

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19.

(a)

The following in the Balance Sheet of A Ltd. Prepare Fund

Flow statement
Liabilities

31.12.09 31.12.10

Assets

31.12.09 31.12.10

Share Capital

8,000

8,500 Land

5,000

5,000

P & L A/C (App)

1,450

2,450 Plant

2,400

3,400

1,650

1,950

900

700

400

900

10,350

11,950

Creditors

900

Mortgage loan

500 Debtors

500 Stock
Cash at Bank

10,350

11,950

A {zv C {U SU Psk {v |hmh

AUP uUP
P

31.12.09 31.12.10

\zxP

31.12.09 31.12.10

[S u

8,000

8,500 {

5,000

5,000

C & |mh (App)

1,450

2,450 Pmih

2,400

3,400

900

500 Ph

1,650

1,950

900

700

400

900

10,350

11,950

Phu
Ahzv Ph

500 \UQ
P UP

10,350

11,950

Or
(b)

Distinguish between process cost and Job Cost.

i AhUP US, o AhUP US

Ch E kP GxP.
20.

(a)

From the particulars given below calculate.

(i)

Break even point

(ii)

Profit or loss when sales are Rs. 12,000 and

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P/ID 28506/PCMF

(iii) Sales required to earn a profit of Rs. 5,000

Sales Profit/Loss
Rs.
Rs.
Period 1 10,000

500

Period 2 14,000

1,500

R PkUPmk [P Psk RPsh

PnUQkP.
(i)

C |mh {

(ii)

. 12,000 G C

(iii) . 5,000 C u .

C (A) |mh
.
.
P 1

10,000

500

P 2

14,000

1,500

Or
(b)

Distinguish between Management Accounting and Cost

Accounting.

s PnUQUS, AhUP PnUQS Ch

E kP GxP.
_____________________

P/ID 28506/PCMF