Cost And Management Accounting 2023 Question Paper [BCom 4th Sem Gauhati University]

In this post, we have shared the Gauhati University Cost and Management Accounting Question Paper 2023 (CBCS) BCom 4th Sem. This question paper is highly beneficial for FYUGP NEP 4th Semester all Major students . It is particularly relevant for students pursuing  Finance Major, HRM Major, and Marketing Management Major, as the syllabus for both CBCS and NEP patterns is quite similar.

We strongly recommend studying this Gauhati University FYUGP NEP BCom 4th Sem Cost and Management Accounting question paper 2023 thoroughly to enhance your preparation for the FYUGP NEP 4th Semester Honours Course. This previous year’s CBCS question paper will be a valuable resource for all major courses under the FYUGP NEP 4th-semester syllabus

2023

COMMERCE

(Honours Core/Regular)

Paper:COM-HC-4016/COM-RC-4026

(Cost Accounting)

Full Marks: 80

Time: Three hours

The figures in the margin indicate full marks for the questions. 

1. Answer the following as directed: 1x10=10

(a) Cost accounting is a method of______cost. 

(Fill in the blank with appropriate word)

(b) A______cost is an irrecoverable cost. (Fill in the blank with appropriate word)

(c) Indirect labour is treated as part of

(i) finished goods

(ii) work-in-progress

(iii) factory overhead

(iv) product

(Select the correct answer) 

(d) Material is the first element of cost. (State whether the statement is true or False)

(e)______Method of valuing material issues is suitable in the times of falling price. (Fill in the blank with appropriate word)

(f) Bin card is a part of accounting record. (State whether the statement is true or false)

(g) Which of the following is not a part of time-keeping?

(i) Punch card 

(ii) Job card

(ii) Attendance register

(iv) None of the above

(Select the correct answer)

(h) Depreciation is a semi-variable expense. (State whether the statement is true or false)

(i) What is process costing ? 

(j) Write the meaning of 'relevant cost' in cost accounting. 

2. Answer the following questions : 2x5=10 

(a) What is the concept of cost ?

(b) State the meaning of motion study in labour costing.

(c) State two important features of p process costing.

(d) What is operating costing ?

(e) Name from the following the method of costing and cost unit for:

(i) Aircraft

(ii) Transport

3. Answer any four of the following questions: 5×4=20

(a) Mention five objectives of cost accounting.

(b) A consignment of sugar was received by Murli Brothers. The invoice reveals the following data:

Quantity  600 kg

Rate per kg   25

GST  @12%

Freight  22,130

After receiving the consignment, it was noticed that there is a shortage of 300kgs. What stock rate would you adopt for the product assuming a provision of 5% towards further deterioration ?

(c) What is 'payment by result' method of labour remuneration? Mention two advantages and two disadvantages of this system. 1+(2+2)=5

(d) The following data pertain to a material ''

Supply period : 4 to 8 months

Consumption Rate : 

Maximum : 1200 units per month

Minimum : 600 units per month:

Normal : 900 units per month

Yearly : 110800 units 

Storage costs are 50% of stock value 

Ordering costs are 2400 per order

Price per unit of material ₹ 100

Compute the minimum stock level.

(e) Explain the five reasons of abnormal idle time of labour cost. 

(f) How is abnormal gain calculated and treated in process costing ? 2+3=5 

4. Answer any four of the following questions: 10×4=40

(a) What are the various costs classified under functional classification'? Give a brief description of each of these costs.

(b) Assam Manufacturing Company uses copper wire which is purchased from the market as and when necessary. Following purchases and issues were made during the month of January, 2023:

January 1 : Opening balance 300 kgs at₹50 / kg 

January 3 : Purchased 500 kgs at 252/kg

January 7 : Issued 220 kgs 

January 11 : Issued 440kgs 

January 18: Purchased 490 kgs at 246/kg

January 24 : Issued 300kgs 

January 28 : Surplus 20 kgs returned to store out of quantity issued on 7th January

(c) During the first week of January 2023, the workman Mr. Santosh produces 150 articles. He received wages for a guaranteed 48 hours a week @50 per hour. The estimated time to produce one article is 20 minutes and under incentive scheme the allowed is increased by 20%. Calculate his gross wages according to-

(i) Piece works with guaranteed weekly wages;

(ii) Rowan premium bonus plan;

(iii) Halsey premium bonus plan.

(d) Explain 'under-absorption' and 'over- absorption of overheads. What are the causes for under and over-absorption of overheads? (2+2)+6=10

(e) A firm of building contractors began to trade on 1st April, 2022. Following was the expenditure on a contract for Rs. 9,00,000.

Material (HR) 1,44,000

Plant issued  30,000

Wages incurred 1,48,000

Other expenses incurred 30,000

Cash received on account of 31st March, 2023 amounted to 4,00,000; being 80% of the work certified. Of the Plant and Materials charged to contract, Plant which cost 6,000 and Materials which cost 5,000 were lost. On 31st March, 2023 Plant cost 4,000 was returned to stores, the cost of work done but uncertified was 20,000 and materials costing 24,600 were in hand on site.

Charge 15% depreciation on plant and prepare Contract Account.

(f) Briefly describe the need for and procedure for integration of Cost Accounting and Financial Accounting. 5+5=10

(i) What is allocation and apportionment of overheads?

(ii) A company has four departments. The actual cost for the period are given below. Apportion the cost to the various departments by using the most equitable method- 2+8=10

Rent : 5,000

Depreciation : 4,800

Supervision  : 9,000

Employer's Liability Insurance : 900

Insurance  : 3,000

The following data are also available in respect of four departments;

Particulars	A	B	C	D
Area	50	40	30	30
Number of workers	24	16	12	8
Value of plant (in ₹)	12,000	9,000	6,000	3,000
Total wages (₹)	4,000	3,000	2,000	1,000
Value of stock(₹)	15,000	9,000	6,000	_____

(h) A manufacturing company disclosed a net loss of ₹ 2,91,000 as per their cost accounts for the year ended on March 31st, 2023. The following information was revealed as a result of scrutiny of the figures of both the sets of books.

Factory overhead over absorbed : 8,000

Administrative overhead under absorbed : 12,000

Depreciation charged in financial accounts : 1,10,000

Depreciation charged in cost accounts : 1,22,000

Income tax provided : 75,000

Interest on loans fund in financial accounts : 1,34,000

Interest on investments not included in cost accounts : 32,000

Transfer fees (Credit financial books) : 8,000

Stores adjustment (Credit in financial books) : 24,000

Prepare a Reconciliation Statement from the above information.

*******

2023

COMMERCE

(Honours Elective)

Paper: COM-HE-5016

(Management Accounting)

FULL MARKS: 80

1. Answer as directed : 1×10=10

(a) Management Accounting aims at providing decisions to the manageme. (State whether the statement is True or False) 

(b) What is Angle of Incidence?

(c)_______ contains many information which are required for effective budgetary planning.

(Fill in the blank)

(d) Trading on equity refers to the use of fixed interest bearing securities by a firm to earn more than their cost so as to increase the return on owners equity. 

(State whether the statement is True or False)

(e) _______refers to the ability of a concern to meet its current obligations as and when they become due.

(Fill in the blank)

(f) An unfavourable material price variance occurs when :

(i) there is increase in price of raw materials

(ii) there is decrease in price of raw materials

(iii) wastage is less than anticipated in the manufacturing process

(iv) wastage is more than anticipated in the manufacturing process

(Choose the correct answer)

(g) How is Break-even analysis' interpreted in its narrower sense?

(h) At break-even point :

(i) there is neither profit nor loss

(ii) total revenue is equal to total costs

(iii) contribution is equal to fixed costs

(iv) All of the above

(Choose the correct answer)

(i) _______budget does not take into consideration any change in expenditure arising out of changes in the level of activity.

(Fill in the blank) 

(j) Which of the following transactions will improve the current ratio ?

(i) Purchase of goods for cash

(ii) Payment to trade payables

(iii) Credit purchase of goods

(iv) Collection of cash from trade receivables

(Choose the correct answer)

2. Give brief answers to the following questions : 2×5=10

(a) Mention two managerial uses of ratio analysis.

(b) Write any two characteristic features of management accounting.

(c) What is PV ratio?

(d) What do you mean by Material Pric Variance?

(e) Mention two limitations of Ratio analysis.

3. Answer the following questions : (any four) 5×4=20

(a) Explain briefly the role of a management accountant in a business enterprise.

(b) Describe briefly any five requisites for a successful budgetary control system.

(c) Sale of a company for two consecutive months 3,80,000 and ₹4,20,000. The company's net profit for these months amounted to ₹24,000 and ₹40,000 respectively. Assuming that there is no any other change, calculate P/V ratio and fixed cost.

(d) Distinguish between Budgetary Control and Standard Costing.

(e) What do you mean by variance analysis? Discuss its importance briefly.

(f) Write any five limitations of Financial Statement analysis.

4. Answer the following questions : (any four)

(a) "The subject of management accounting is very important and useful for optimum utilisation of resources. It is an indispensable discipline for management.” Elucidate this statement. 10

(b) What is meant by Zero-based budgeting? State the advantages and limitations of Zero-based budgeting.  2+4+4=10

(c) Describe briefly the limitations of Financial Accounting and point out how Management Accounting helps in overcoming them. 10

(d) The expenses for the production of 5,000 units of a product in a factory are given as follow :

Description	Per Unit ₹
Materials	50.00
Labour	20.00
Variable factory overheads	15.00
Fixed factory overheads	10.00
Administrative expenses (5% variable)	10.00
Variable selling expenses (80% variable)	4.80
Fixed distribution expenses (10% fixed)	0.50

The total cost of sales per unit was ₹116.00. You are required to prepare a budget for the production of 8,000 units.

(e) 5+5=10

(i) Given :

Profit ₹200

Sales ₹2,000

Variable Cost 75% of sales Find break-even sales and profit when sales are ₹3,200.

(ii) Given :

Break-even sales ₹8,000

Fixed Costs ₹3,200

Find profit when sales are ₹ 10,000 and sales when profit is ₹2,400.

(f) “Ratio analysis is only a technique for making judgements and not substitute for judgements." Explain. 

(g) From the following particulars find out : 10

(i) Material cost variance

(ii) Material price variance and

(iii) Material usage variance

Quantity of material purchased 3,000 units

Value of material purchased 3 9,000

Standard quantity of material required per tonne of finished product 25 units

Standard rate of material ₹2 per unit

Opening stock of material Nil

Closing stock of material 500 units

Finished production during the year 80 tonnes

(h) 5+5=10

(i) Write an explanatory note on common-size statement.

(ii) Given:

Sales ₹3,50,000

Sales returns ₹ 20,000

Gross profit ratio 20%

Inventory turnover ratio 8 times

Opening inventory exceeds closing

(ii) Given :

Sales ₹3,50,000

Sales returns ₹ 20,000

Gross profit ratio 20%

Inventory turnover ratio 8 times

Opening inventory exceeds closing inventory by ₹ 14,000.

Find opening and closing inventory.

-00000-

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