Loyola College B.B.A. Business Administration April 2009 Cost & Management Accounting Question Paper PDF Download



JQ 13






Date & Time: 17/04/2009 / 9:00 – 12:00   Dept. No.                                                       Max. : 100 Marks



(Answer All Questions)                                                      (10x 2=20)


1.Define a cost center.

2.Write a note on  EOQ?

3.What is a Bincard?

4.Explain the term “labour turnover”

5.From the following figures, calculate EOQ and number of orders to be placed in a  year

Annual consumption of material -4000 units

Cost of buying per order –Rs.5

Cost per unit –Rs.2 per unit

Storage and carrying cost – 8% on average inventory.

6.Define the term ‘fund’

7.What is P/V ratio

8.Explain the meaning and significance of ‘current ratio’

9.From the following, calculate Stock Turnover ratio:

Opening Stock Rs.    40,000

Closing Stock  Rs.    44,000.

Sales               Rs.   4,15,000

Gross profit ratio – 20%

10.Selling price per unit: Rs.10

Variable cost per unit: Rs.7.5

Fixed cost                   ; Rs.2,00,000

Budgeted profit            : Rs.50,000

How many units must be sold to earn budgeted profit?


SECTION –B                (5×8=40)

(Answer any FIVE questions, choosing not less than TWO questions from each group)



11.Explain the meaning and purposes of preparing cost sheet.

12.Two components X and Y are used as follows:

Minimum usage           :50 units per week each

Maximum usage          ;150 units per week each

Normal usage              :100 units per week each

Ordering quantities     :X-600 units    Y-1000 units

Delivery periods          :X – 4 to 6 weeks        Y-2 to 4 weeks

Maximum  reorder period for emergency purchases X: 2 weeks Y: 2 weeks

Calculate for each component:

a)Reorder Level

b)Maximum Level

c)Minimum Level

d)Danger Level

13.On the basis of the following information, calculate the earnings of A and B under straight

piece Rate system and Taylor’s Differential Piece-rate System:

Standard production-8 units per hour

Hourly rate-     Re.0.40 per hour

Differential to be applied:

80% of piece-rate below standard

120% of piece-rate at or above standard

In a nine-hour day, A produces 54 units and B produces 75 units

14.In a factory, there are two service departments P & Q and three production departments A,

B and C. In April 2008, the departmental expenses were:

A- Rs.6,50,000            B- Rs.6,00,000            C- Rs.5,00,000

P- Rs.1,20,000            Q- Rs.1,00,000

The service department expenses are allocated on a percentage basis as follows:

Service departments    A         B         C         P          Q

P                      30%     40%     15%     –           15%

Q                     40%     30%     25%     5%       –

Prepare secondary distribution summary under Simultaneous equation method



15.Distinguish between Cost Accounting and Management Accounting

16.Write short notes on the following:

a)Cash from operation

b)Solvency Ratios

c)Marginal Cost

d)Break Even Analysis

17.From the following Balance Sheets you are required to prepare a Cash Flow Statement

Liabilities        2007                2008                Assets              2007                2008

Rs                    Rs                                            Rs                    Rs

Share Capital     3,00,000          3,50,000          Land                70,000             86,000

Profit &Loss a/c    20,000            33,000          Stock                90,000         1,00,000

Current Liabilities 90,000             65,000          Debtor           1,20,000         1,15,000

Cash              1,30,000         1,47,000

————-        ———–                            ————–     ————-

4,10,000          4,48,000                               4,10,000         4,48,000



18.The following are obtained from the records of a factory

Sales(4000 units @ Rs.25 each) Rs. 1,00,000

Variable cost                               Rs     72,000

Fixed cost                                    Rs     16,800

Calculate a) P/V ratio   b)Break-even Sales   c)Margin of safety

  1.       d) What additional units should be sold to obtain the same amount of profit if the

selling price is reduced to Rs.20


(Answer any TWO questions   2×20=40)

19.a)The following figures have been obtained from the costing records of R.Ltd. for the year 2007.                                Rs                                                                    Rs

Cost of material          2,40,000                      Administrative Expenses 1,34,400

Wages for Labour       2,00,000                      Selling Expenses                 89,600

Factory Overhead       1,20,000                      Profit                                1,68,000

Distribution Expenses    56,000

A work has been executed in 2008 and the expenses have been incurred- Cost of the material Rs.32,000 and Wages for labour Rs.20,000.

Assuming that in 2008 the rate for Factory overhead went up by 20%, distribution expenses went down by 10% and selling and administration charges up by 12.5%, at what price should the order be quoted so as to earn the same rate of profit on the selling price? Show the full working. Distribution, Administration and Selling charges are based on Factory cost.


19.b)Prepare a stores ledger using a)Weighted Average Method

b)FIFO Method of material issue


March  1   Balance 1,000 units @ Rs.70 per unit

  • Purchased 2,000 units @ 80 per unit
  • Issued 500 units
  • Issued 1,000 units

15  Purchased 2,000 units at   Rs.80 per unit

  • Issued 400 units
  • Received back 25 units out of the issue made on 5th March
  • Issued 1,500 units
  • Returned to supplier 30 units out of purchases made on 15th March
  • Purchased 1,000 units at Rs.75 per unit
  • Issued 1,000 units.

Physical verification  on 21st  March revealed a shortage of 15 units and 20 units shortage                    on 30th March.




20.a) From the following financial statements of X.Ltd. calculate

i)Current ratio ii)Liquid ratio  iii)Gross profit ratio  iv)Net profit ratio v)Net profit to capital employed  vi)Fixed asset turnover ratio  vii)Sales to capital employed  viii)Debtor turnover ratio



Income Statement for the year ending 2007

Particular                                 Rs                                Rs.                                                       ————————————————————————–


Cash                            64,000

Credit                       6,84,000

————                         7,48,000

Less: Cost of sales                                                      5,96,000


Gross Profit                                                     1,52,000

Less: Expenses:

Warehouse and transport        48,000

Administration                        38,000

Selling                                     28,000

Debenture interest                     4,000                       1,18,000


Net Profit                                                            34,000

Balance Sheet as on 31-12-2007


Liabilities                                Rs.                   Assets                          Rs.

Share Capital               1,50,000                      Fixed Asset(net)                 80,000

Reserves                         60,000                      Current Asset

Profit &Loss                  24,000                                  Stock                    1,88,000

Debenture                      60,000                                  Debtor                  1,64,000

Current Liabilities      1,52,000                                   Cash                        14,000

———–                                                                  ———

4,46,000                                                               4,46,000


20.b)Following are the Balance sheets of A Ltd as on 31st Dec. 2006 & 2007

Liabilities         Rs                      Rs     Assets                          Rs                    Rs

2006                2007                                        2006                2007

Share Capital            1,00,000    1,50.000    Land &Building          1,00,000            90,000

General reserve           50,000       60,000  Plant&Machine             1,00,000          1,19,000

Profit&Loss                30,500       30,000    Stock                              50,000             24,000

Bank Loan                  70,000                   –  Debtor                            75,000             63,000

Sundry Creditor           50,000      37,200    Cash                                   500                1,200

Provision for Tax         32,000      35,000    Bank                                 2,000             15,000

Goodwill                          5,000                      –

3,32,500          3,12,200                                  3,32,500          3,12,200

Additional information

i)Dividend of Rs.23,000 was paid during 2007. ii) Depreciation written off on  building Rs10,000 and Machinery Rs.14,000. ii) Income tax paid during the year Rs.28,000.

Prepare a Fund Flow Statement for 2007.


Go To Main Page

Latest Govt Job & Exam Updates:

View Full List ...

© Copyright Entrance India - Engineering and Medical Entrance Exams in India | Website Maintained by Firewall Firm - IT Monteur