Cost & Management Accounting (MGT 212)

Tribhuvan University · Cost & Management Accounting (BBS 2nd Year) · 2082 BS — 19 questions — a free old question paper on Goodone.club’s exam-paper archive.

  1. Write any two objectives of financial accounting. [2 marks]
  2. Mention the causes of labour turnover. [2 marks]
  3. Explain about economic order quantity. [2 marks]
  4. What are the two limitations of budget? [2 marks]
  5. Write down the meaning of main-product. [2 marks]
  6. The following information is available in respect of a material. Annual requirement = 36,000 units; Minimum stock level = 300 units; Re-order period = 10 days. Required: Re-order level. [2 marks]
  7. The following data are given to you: Standard time allowed 16 hours; Actual time spent 14 hours; Wage rate per hour Rs. 20. Required: Wages under Halsey Premium Plan. [2 marks]
  8. The following information are provided to you: (Production Dept. A / Production Dept. B) Rent (Rs) 60,000 / 74,000; Store overhead (Rs) 40,000 / 26,000; Labour hours 6,000 / 10,400; Idle time (hours) 500 / 400. Required: Labour hour rate of the production departments. [2 marks]
  9. The following particulars are extracted from the records of a company: Average number of employees was 300. Number of employees quit and discharged was 40 and 30 respectively. Employees replaced during the period were 50. Required: Labour Turnover Rate Flux method. [2 marks]
  10. The following information are provided to you: Expected price of product = Rs.5,000; Expected discount = 5% on price; Expected production cost of product = Rs.500; Expected designing cost of product = Rs.50. Required: Value of product. [2 marks]
  11. a. What are the importance of flexible budget? (5) b. The production unit forecasts for coming four months of a company are: Months Baishak/Jestha/Ashad/Shawan; Outputs 5,000/6,000/6,000/5,000. Each unit of finished product needs 2 kg of material @ Rs.3 per kg. The company's has a policy of keeping ending inventory of raw material is 100 percent of next month's production need. Similarly, each unit of finished goods need 2 labour hours and rate per hour is Rs.3. Required: Material Purchase Budget and Labour Budget for the three months from Baisakh to Ashad. (3+2) [10 marks]
  12. a. What are the assumptions of cost volume profit analysis? (5) b. AB manufacturing company with normal capacity of 30,000 units provides the following particulars for the year ending 2082: Production units 32,000; Sales units 30,000; Variable manufacturing cost per unit Rs.6; Fixed manufacturing cost per unit Rs.4; Variable selling cost per unit Rs.3; Fixed selling and administrative cost Rs.40,000; Selling price per unit Rs.20. Required: i) Income statement under absorption costing system. ii) Reconciliation statement. (5) [10 marks]
  13. The following information are given: Standard: Labour / Number / Rate per hour — Skilled 5 / Rs.20; Semi-skilled 8 / Rs.15; Unskilled 7 / Rs.10. Actual: Skilled 6 / Rs.21; Semi-skilled 9 / Rs.16; Un-skilled 5 / Rs.9. Standard and actual time is 30 hours. Standard and actual outputs are 200 units and 220 units respectively. Required: Labour Variances. (5x2=10) [10 marks]
  14. The sales revenue and cost of a manufacturing company for two years were as follows: Year / Sales Revenue (Rs) / Profit (Rs): 2024 500,000 20,000; 2025 600,000 40,000. Required: i) Brake-even point in Rs. ii) Break-even point in units if selling price per unit is Rs.50. iii) Sales to earn desired profit after tax of Rs.75,000 if tax rate is 25%. iv) Profit when sales are Rs.800,000. v) Margin of safety if profit is Rs.70,000. (3+1+2+2+2) [10 marks]
  15. What is value analysis? Explain the different techniques of cost reduction? (4+6) [10 marks]
  16. Define activity based costing. Why is it important? (5+5) [10 marks]
  17. The following information pertaining to a contract are provided: Material = Rs.1,400,000; Wages (including outstanding of Rs.20,000) = Rs.1,720,000; Other expenses = Rs.80,000; Plant = Rs.400,000; Work certified = 80%; Cash received = Rs.3,200,000; Material at site = Rs.150,000; Depreciation on plant = 15%; Work uncertified = Rs.20,000; Ignore depreciation of plant for the use on uncertified portion of the work; Contract price = Rs.5,000,000. Contract was commenced on 1st Shrawan and account are closed on 31st Ashad every year. Required: a. Contract Account b. Contractee's Account c. Work in P... [15 marks]
  18. Product XY passes through two processes X and Y before it is transferred to finished stock. The other information are: (Process X / Process Y / Finished Stock) Opening Stock 10,000 / 12,000 / 20,000; Direct Material 13,000 / 18,000 / -; Direct Wages 14,000 / 16,000 / -; Factory Overhead 8,000 / 6,000 / -; Closing Stock 4,000 / 4,000 / 6,000; Inter-process profit included in Opening Stock - / 2,000 / 3,500. The output of process X is transferred to process Y at 20% profit on the transfer price. The output of process Y is transferred to finished stock at 25% profit on cost price. The stock in pr... [15 marks]
  19. "Management accounting involves the presentation of financial information for internal purposes to be used by management in making key business decisions". Discuss. (15) [15 marks]