Name of the University : University of Pune
Name of the College : MIT Arts Commerce & Science College
Degree : BBA
Subject Code/Name : Cost Accounting
Semester : II
Document Type : Question Bank
Website : mitacsc.ac.in
Download Model/Sample Question Paper :
200802009: https://www.pdfquestion.in/uploads/mitacsc.ac.in/3756.-CA.pdf
Cost Accounting :
CHAPTER 1 Basic Concepts of Cost Accounting :
1. Define the terms :(i) Cost, (ii) Costing, (iii) Cost Accounting,
2. What is Financial Accounting-
Related : MIT Arts Commerce & Science College Business Organisation & systems BBA Question Bank : www.pdfquestion.in/3753.html
3. Define Cost Accounting. State the advantages and
4. Differentiate between Cost Accounting and Financial
5. What is ‘Cost Center’- Explain the various types of cost
CHAPTER 2 : Cost Sheet
1. Define the term ‘Cost’. Explain the various Elements of
2. What is Cost Classification- Explain the need for CostClassification.
3. Why a ‘Cost Sheet’ is to be prepared- Give the specimenof a ‘Simple Cost Sheet’.
4. Prepare Cost-Sheet giving(a) Prime Cost, (b) Works Cost, (c) Cost of Production,
The following data have been extracted from the books of Birla Tractors Ltd., Pune for the year 2007-2008
** Opening Stock of Raw Materials 25,000
** Purchase of Raw Materials 85,000
** Closing Stock of Raw Materials 40,000
** Carriage Inward 5,000
** Wages – Direct 75,000
** Wages – Indirect 10,000
** Other Direct Charges 15,000
** Rent and Rates –
** Factory 5,000
** Office 500
** Indirect Consumption of Material 500
** Depreciation
** Plant and Machinery 1,500
** Office Furniture 100
** Salary –
** Office 2,500
** Salesmen 2,000
** Other Factory Expenses 5,700
** Other Office Expenses 900
** Manager’s Remuneration 12,000
** Bad Debts written off 1,000
** Advertisement Expenses 2,000
** Traveling Expenses of Salesmen 1,100
** Carriage and Freight Outward 1,000
** Sales 2, 50,000
** Advance Income Tax 15,000
** Cash Discount 5,000
The manager has the overall charges of the company and his remuneration is to allocated Rs. 4,000/- to Factory, Rs. 2,000/- to Office and Rs. 6,000/- to the Selling.
From the above particulars prepare a Cost Statement showing” (1) Prime Cost, (2) Factory Cost, (3) Cost of Production, (4) Cost of Sales, and (5) Net Profit.
CHAPTER 3 : Methods of Costing :
1. What is Job Costing- Explain the important features ofJob Costing
2. What are the advantages and limitations of Job Costing-
3. Define “Contract Costing’ Explain the distinguishingfeatures of Contract
4. Define ‘Process Costing’- Describe the main features of
5. Define ‘Normal Loss’. Explain the accounting treatment
6. Define ‘Abnormal Gain’. Explain the accounting
7. What is Operating Costing- Explain the features of
8. The following balances have been extracted from the books of Home Constructions, Haridwar on 31st March 2008
** Materials issued from stores 60,000
** Materials purchased 3,100
** Wages paid 73,000
** Outstanding wages 150
** Plant and machinery purchased and installed
** at site on 1st July 2007 16,000
** Direct expenses 2,500
** Direct expenses accused 650
** Administration on cost 6,000
** Value of work certified 1, 60,000
** Cost of work uncertified 5,600
** Material returned to stores 7,200
** Cash received from contractee 1, 44,000
Depreciation on plant and machinery @20% p.a. Prepare contract Account and Contractee Account for the year ended 31st March 2008 in the books of a contractor
CHAPTER 4 : Budgetary Control :
1. Clearly bring out the meaning of Budget, Budgeting and
2. Discuss the objective, advantages and limitations of
3. Explain the various types of Budget.
4. Kumaran Mohan Ltd. Kurla produces a consumer
Further information :
(i) 5% of the purchases and 10% of the sales are for cash.
(ii) Creditors allowed to customers ½ months.
(iii) Creditors for purchase are paid following the month of purchase.
(iv) Wages are paid every 15 days.
(v) Opening balance of cash as 1st January,2006 is Rs. 15,000/-
6. From the following particulars
Further Information :
(i) 50% of thje purchases and sales are for cash
(ii) Debtors realized after one month
(iii) Creditors paid after two months.
(iv) Payment of wages made after one week
(v) Expenses are paid after one month
(vi) Rend of Rs. 5,000/- per month not considered in expenses
(vii) Income-tax payable in April Rs. 1,500/-
(viii)Cash balance as on 1st April 2006 was Rs. 1,500/-
CHAPTER 5 : Marginal Costing :
1. State the advantages and limitations of Marginal Costing
2. Draw a Break Even Chart taking suitable data and show
3. What do you mean by ‘Cost-Volume-Profit Analysis’-
4. Write short notes on :
5. The turnover and profits during the two periods were as
b) Sales required to earn a Profit of Rs. 5 Lakhs
CHAPTER 6 : Standard Costing :
1. What is Standard Costing- What are its advantages and
2. What is Variance Analysis- Explain in brief the different
3. “Standard osting is a valuable aid to
4. Tip Top Industries, Tarapur furnish the following information.
5. In Swojus Industries, Surat during October 2006 actual