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Date Submitted: 12/07/2012 09:29 PM
[ December ¯ 2011 ]
INTERMEDIATE EXAMINATION
(REVISED SYLLABUS - 2008)
GROUP - II
Paper-8 : COST AND MANAGEMENT ACCOUNTING
Q. 1. (a) Match the statement in Column 1 with the most appropriate statement in Column 2 :
Column I
Value analysis
Performance of public enterprise
Balance score card
Residual income
Variance analysis
Column II
Performance analysis
Management by exception
Measures divisional performance
Technique of cost reduction
Shows profitability and capacity utilisation
Q. 1. (b) State whether the following statements are True (T) or False (F) :
(i)
(ii)
(iii)
(iv)
(v)
Profit planning and control is not a part of budgetary control mechanism.
Cost industry makes use of output costing.
Idle time variance is always adverse.
Ash produced in thermal power plant is an example of co-product.
The stock turnover ratio indicates the slow moving stocks.
Q. 1. (c) In the following cases one out of four answers is correct. You are required to indicate the correct
answer and give reasons for answer :
(i) The cost data pertaining to Product “X” of XL Ltd. are as follows :
Maximum capacity
30,000 units
Normal capacity
15,000 units
Increase in inventory 1,880 units
Variable cost per unit Rs. 12
Selling price per unit Rs. 50
Fixed manufacturing overhead costs
Rs. 3,60,000
If the profit under Absorption costing method is Rs. 1,01,000, the profit under Marginal
costing method would be
A. Rs. 1,46,120
B. Rs. 1,23,560
C. Rs. 55,880
D. Rs. 73,340
2
[ December ¯ 2011 ]
Revisionary Test Paper (Revised Syllabus-2008)
(ii) Which of the following does not influence the use of activity-based costing?
A. High proportion of overhead costs
B. Product complexity
C. Monopoly position
D. Volume diversity
(iii) Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is
1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening
finished goods...