Annamalai University Question Paper December 2014
B.Com DEGREE EXAMINATION, December 2014
(FINANCE & INVESTMENT)
(SECOND YEAR)
650: COSTING
Time: Three hours Maximum: 100 marks
SECTION - A
Answer any FIVE questions. (5 × 8 = 40)
1. Define Cost Accounting and state the objectives of Cost Accounting.
2. State the advantages of Cost Accounting to
a) Management b) Workers c) Creditors
d) Government and e) General Public.
3. What is Economic order Quantity? And Explain the ABC Analysis as a technique
of Inventory Control.
4. A publishing house purchases 2,000 units of a particular item per year at a unit
cost of `20. The ordering cost per order is `50 and the inventory carrying cost is
25%. Find the optimal order quantity and the minimum total cost including
purchases cost. If 3% discount is offered by the supplier for the purchase in lots
of 1,000 or more, should the publishing house accept the offer?
5. Describe the steps involved in overhead accounting.
6. Explain the following items 1) Cost Allocation 2) Cost Apportionment
3) Cost Classification and 4) Cost Absorbtion
7. International motors manufacture crankshafts for jeeps and trucks, they have
furnished the following particulars for the quarters ended March 31, 1998.
Materials `2,89,000; Direct Wages `42,000; Stores Expenses `20,000;
Machinery Maintenance `4,600; Depreciation `22,300; Staff Welfare `12,000;
General Expenses `30,000; Administration and Selling Expenses 27,000.
Additional information provided from them:
5661
2
Jeep Trucks
1. Production(Nos.) 300 400
2. Material cost ration per vehicle 1 2
3. Direct Labour Ratio 2 3
4. Machine hour Ratio 1 2
Calculate the cost per crankshaft of each vehicle indicating the basis of
apportionment adopted by you.
8. What is process costing? Distinguish between Job Costing and process costing.
SECTION - B
Answer any THREE questions. (3 ×20 = 60)
9. Discuss the role of cost accountant in a manufacturing firm.
10. What is Bin Card and just in Time purchases and its advantages?
11. Explain the following items
1) Inventory Control 2) Re-order level 3) ABC Analysis
4) Perpetual Inventory 5) Economic order Quantity 6) Danger level.
12. What are the main features of job order costing and give a proforma cost sheet
under such a system.
13. Discuss Merits and Demerits of FIFO Average Cost Method for valuation of
work-in-progress.
$$$$$$$
B.Com DEGREE EXAMINATION, December 2014
(FINANCE & INVESTMENT)
(SECOND YEAR)
650: COSTING
Time: Three hours Maximum: 100 marks
SECTION - A
Answer any FIVE questions. (5 × 8 = 40)
1. Define Cost Accounting and state the objectives of Cost Accounting.
2. State the advantages of Cost Accounting to
a) Management b) Workers c) Creditors
d) Government and e) General Public.
3. What is Economic order Quantity? And Explain the ABC Analysis as a technique
of Inventory Control.
4. A publishing house purchases 2,000 units of a particular item per year at a unit
cost of `20. The ordering cost per order is `50 and the inventory carrying cost is
25%. Find the optimal order quantity and the minimum total cost including
purchases cost. If 3% discount is offered by the supplier for the purchase in lots
of 1,000 or more, should the publishing house accept the offer?
5. Describe the steps involved in overhead accounting.
6. Explain the following items 1) Cost Allocation 2) Cost Apportionment
3) Cost Classification and 4) Cost Absorbtion
7. International motors manufacture crankshafts for jeeps and trucks, they have
furnished the following particulars for the quarters ended March 31, 1998.
Materials `2,89,000; Direct Wages `42,000; Stores Expenses `20,000;
Machinery Maintenance `4,600; Depreciation `22,300; Staff Welfare `12,000;
General Expenses `30,000; Administration and Selling Expenses 27,000.
Additional information provided from them:
5661
2
Jeep Trucks
1. Production(Nos.) 300 400
2. Material cost ration per vehicle 1 2
3. Direct Labour Ratio 2 3
4. Machine hour Ratio 1 2
Calculate the cost per crankshaft of each vehicle indicating the basis of
apportionment adopted by you.
8. What is process costing? Distinguish between Job Costing and process costing.
SECTION - B
Answer any THREE questions. (3 ×20 = 60)
9. Discuss the role of cost accountant in a manufacturing firm.
10. What is Bin Card and just in Time purchases and its advantages?
11. Explain the following items
1) Inventory Control 2) Re-order level 3) ABC Analysis
4) Perpetual Inventory 5) Economic order Quantity 6) Danger level.
12. What are the main features of job order costing and give a proforma cost sheet
under such a system.
13. Discuss Merits and Demerits of FIFO Average Cost Method for valuation of
work-in-progress.
$$$$$$$
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