BACHELOR OF BUSINESS ADMINISTRATION EXAMINATION, 2007

Transcription

1 Ex/BBA/T/202/64/2007 BACHELOR OF BUSINESS ADMINISTRATION EXAMINATION, 2007 (2nd Semester) BUSINESS COSTING Paper Time : Three hours Full Marks : 100 Answer any five questions. All questions carry equal marks. 1. (a) Differentiate between Costing Accounting and Financial Accounting. 6 Prepare a Cost Sheet from the following details extracted from the books of XYZ Co. Ltd. for the year ended 31st March Stock of materials as on 1st April ,000 Stock of materials as on 31st March ,000 Materials purchased 2,08,000 Indirect wages 9,600 Carriage outwords 8,200

2 ( 2 ) ( 9 ) Carriage Inwords 5,100 Cash Discount allowed 3,400 Bad debt written off 4,700 Repairs to plants machinery and tools 10,600 Rent, rates and taxes (factory) 3,000 Calculate (i) P/V Ratio (ii) B.E.P. in (iii) Profit for sales volume 50,000 (iv) Estimate the volume of sales turnover to make a net profit of 10, Explain the types of Report in Management. 8 Rent, rates and taxes (office) 1,600 Travelling expenses 3,100 Traveller's salaries and commission 8,400 Productive wages 40,000 Depriciation on machinery, plant and tools 7,100 Depriciation on furniture 600 Director's fees 20,000 Gas, water charges (factory) 1,500 Gas, water charges (office) 300 General charges 5,000 Manager's salary 12,000 Out of 48 working hrs in a week, the time devoted by the manager to the factory and to the office was 40 hrs and 8 hrs respectively throughout the year. Profit on cost of sales is 10%. 14

3 Number of workers at the beginning of the year 7,600 Number of workers at the end of the year 8,400 During the year 80 workers leave, 320 workers are discharged and 1200 workers are recruited. Of these, 400 workers are recruited because of leavers and the rest are engaged in expansion work scheme (a) State the objectives of Inventory Control. 6 What do you mean by a 'Debit Note'? 2 M/S Tubes Ltd. are the manufacturers of picture tubes for T.V. The following are the details of their operation during 2005 : (i) Average monthly market demand 2000 Tubes (ii) Ordering cost Rs 100 per order (iii) Inventory carrying cost (iv) Cost of tubes ( 4 ) 20% per annum 500 per tube (v) Normal usage 100 tubes per week State the method of costing and unit of cost against each industry : (i) Nursing home (ii) Bridge construction (iii) Biscuits (iv) Chemical Industry (a) Explain 'Margin of Safety'. 2 From the following particulars calculate : (i) (ii) ( 7 ) Total material cost variance Material price variance (iii) Material usage variance Standard Actual Materials Units Price () Units Price () A 2, , B C (vi) Minimum usage 50 tubes per week 12 (vii) Maximum usage (viii) Re-order period 200 tubes per week 6 8 weeks Calculate (i) Labour cost variance (ii) Labour rate variance (iii) Labour efficiency variance from the following: Compute from the above (i) Re-order Quantity (ii) Reorder Level (iii) Minimum Level (iv) Maximum Level (v) Average Level 12 Standard hours : 40@ 3 per hr. Actual hours : 50@ 4 per hr. 6

4 ( 6 ) (7) The Company is to pay dividend to shareholders and bonus to workers of 15,000 and 22,500 repectively in the month of April. (8) Plant has been ordered to be received and paid in May It will cost 1,20, (a) The expenses budgeted for production of 10,000 units in a factory are given below : Per Unit Materials 70 Labour 25 Variable overheads 20 Fixed overheads ( 1,00,000) 10 Variable expenses (direct) 5 Selling expenses (10% fixed) 13 Distribution expenses (20% fixed) 7 Administration expenses ( 50,000) 5 Total cost of sale per unit 155 Prepare a flexible budget for production of 8,000 units and 6,000 units of showing total and per units cost. Assume administration expenses are rigid for all levels of producion (a) Define budget and budgetory control. 4 Prepare a Cash Budget for the months April to June 1998 Month Sales Purchases Wages Factory Office Selling (Rs) (Rs) (Rs) (Rs) (Rs) (Rs) February 75,000 45,000 9,000 7,500 6,000 4,500 March 84,000 48,000 9,750 8,250 6,000 4,500 April 90,000 52,500 10,500 9,000 6,000 5,250 May 1,20,000 60,000 13,500 11,250 6,000 6,570 June 1,35,000 60,000 14,250 14,000 7,000 7,000 Other information : ( 5 ) (1) The company expects to have Rs 37,500 cash in hand on 1st April (2) Period of credit allowed by suppliers -2 months. (3) 20% of sales is for cash and period of credit allowed to customers for credit sales is one month. (4) Delay in payment of wages - 1 (month) (5) Delay in payment of all expenses 1 (month). (6) Income tax of 57,500 is due to be paid on June 15, 1998.

5 ( 8 ) 7. Write short notes on : (any four) (a) ABC system Methods of costing 2. (a) High wages rates do not necessarily mean high labour cost" Elucidate. 3 ( 3 ) From the following particulars calculate the earning of a worker for a week under - Economic order quantity (i) Straight Piece Rate (d) Perpetual inventory system (ii) Differential Piece Rate (e) Classification of cost according to behaviour (iii) Halsey Premium Scheme (f) Zero based Budgeting (iv) Rowan Plan (g) Time Keeping Weekly working hrs : 48 (h) Idle Time Hourly wage rate : 7.50 (i) Types of incentive schemes. 4 5=20 8. (a) You are given the following information in respect of a company : Fixed cost 13,000 Variable cost 14,000 Total cost 27,000 Net Profit 3,000 Net Sales 30,000 Price rate per unit : 3.00 Normal time taken per piece : 24 minutes Normal output per week : 120 pieces. Actual output per week : 150 pieces. Differential piece rate : 80% of piece rate when output is below normal, and 120% of piece rate when output above normal. 12 From the following calculate labour turnover rates under (i) Sepatation Method (ii) Replacement Method (iii) Flux Method.