2015 – Previous Year Question Papers | Cost and Management Accounting | Previous Year – Masters of Commerce (M.Com) | Dibrugarh University

2015 – Previous Year Question Papers | Cost and Management Accounting | Previous Year – Masters of Commerce (M.Com) | Dibrugarh University

2015

(August)

COMMERCE

Paper: 103

(Cost and Management Accounting)

Full Marks – 80

Time – Three Hours

The figures in the margin indicate full marks for the questions.

1. (a) Define ‘Costing’ and ‘Cost accounting’. Describe the importance of cost accounting as a managerial tool. 2+4+10=16

Or

(b) Describe the benefits and limitations of Activity-based costing. 8+8=16

2. (a) (i) Distinguish between Job costing and Process costing 8

(ii) The following data relate to a manufacturing concern:

Production

Cost of production

Normal loss

Actual loss

Scrap value

= 1,000 units

= Rs. 1,850

= 10% of production

= 150 units

= Re. 0.50 per unit

Prepare Process Account and Abnormal Loss Account 8

(b) Why it is necessary for reconciliation of cost and financial accounts? State the reasons for differences between profits shown by both the sets of accounts. 6+10=16

3. (a) Prepare a comparative Balance Sheet of X Co. Ltd. from the following data and show the trend percentages: 16

(Amount in lakhs of Rupees)

2010

2011

2012

2013

2014

Liabilities and owners’ Equity:

Reserves

Long term liabilities

Current liabilities

100

73

304

213

100

78

316

183

135

125

332

235

135

125

425

264

170

96

478

307

Total Liabilities

690

677

827

949

1,051

Assets

2010

2011

2012

2013

2014

Fixed Assets

Current Assets

Investments

154

524

12

182

482

13

221

591

15

270

631

48

309

689

53

Total Assets

690

677

827

949

1,051

Or

(b) What is Common-size Statement? What are its objectives? Describe the utility of such a statement. 4+6+6=16

4. (a) “Ratios are mechanical and incomplete.” Comment on this statement giving justifications in support of your answer. 16

Or

(b) From the following Balance Sheet of a company, you are required to calculate the ratios as given below –

1) Debt-Equity Ratio.

2) Equity Ratio.

3) External Equities to Total Assets Ratio.

4) Fixed Assets or Net Worth Ratio.

5) Current Assets to Net Worth Ratio. 4+(3×4)=16

Balance Sheet

As at ………………

Liabilities

Rs.

Assets

Rs.

3,000 Equity shares @ Rs. 100 each

7% Debentures

Reserve & Surplus

Sundry Creditors

Bills Payable

3,00,000

1,50,000

80,000

30,000

50,000

Buildings

Furniture

Machinery

Stock

Debtors

Cash balances

2,50,000

40,000

2,10,000

60,000

30,000

20,000

6,10,000

6,10,000

5. (a) Explain the meaning of working capital. Describe the factors that affect the amount of working capital requirement. 6+10=16

Or

(b) Prepare a statement showing the working capital needed to finance a level of activity of 3,00,000 units of output for the year. The cost structure for the company’s product for the above mentioned activity level is detailed below –

Elements of Cost

Cost per unit

Raw materials

Direct labour

Overheads

Rs.

20

5

15

Total cost

Profit

40

10

Selling price

50

Raw materials are held in stock, on an average for two months. Work-in-progress will approximate to half-a-month’s production. Finished goods remain in warehouse, on an average, for a month. Suppliers of materials extend one month’s credit. Two months credit is normally allowed to debtors. A minimum cash balance of Rs. 25,000 is expected to be maintained. The production pattern is assumed to be uniform during the year. 16

***

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