Cost & Management Accounting - Why Is It Necessary to Reconcile Cost and Financial Accounts

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Cost & Management Accounting

Note :- Solve any 4 Questions

All Questions Carry equal Marks.

Questions:

1. a) Are all fixed costs sunk costs? Explain

b) What are opportunity costs? Are opportunity costs relevant in decision making? Give examples in support of your answer.

c) What are the various methods by which you would split semi-variable costs in its fixed and variable elements?

2. a) What are the characteristics of companies that are like to be using job order cost system? Specify five concrete situations when use of job order cost system is most appropriate.

b) Why is it difficult to identify manufacturing overheads with products manufactured? Also, state the difference between the manufacturing overheads control account and manufacturing overhead applied account.

3. a) What do you understand by integrated accounts? State the advantages of integrated accounts. State in brief the procedure of installing such a system in a newly started manufacturing firm.

b) Why is it necessary to reconcile cost and financial accounts?

4. a) Explain How budgeting and budgetary control operate together in a total management system.

b) Write a note on the advantages and limitations of budgeting.

5. a) What is “standard costing” and how would you distinguish it from “budgetary control?”

b) How do standards and standard costs facilitate managerial planning and control?

Need Answer Sheet of this Question paper, contact

aravind.banakar@gmail.com

www.mbacasestudyanswers.com

ARAVIND – 09901366442 – 09902787224