Q1Economic Order Quantity
0 marks easy
Reliable India Pvt Ltd is a startup company engaged in manufacturing of Agro Tech product from a raw material, which is purchased at ₹190 per kg. The company incurs a handling cost of ₹1,470 plus, freight of ₹770 per order. The incremental carrying cost of inventory of raw material is ₹3 per kg per month. In addition, the cost of working capital finance on the investment in inventory of raw material is ₹20 per kg per annum. The annual production of the product is 1,50,000 units and 3 units are obtained from one kg. of raw material. Assume 360 days in a year.
Q2Labour turnover and flux rate
0 marks easy
Following information are available from the cost records of BMR Limited, CALCULATE Labour turnover rate and Labour flux rate: No. of Employees as on 01.04.2021 = 9,400; No. of Employees as on 31.03.2022 = 10,600; During the year, 160 Employees left while 640 Employees were discharged and 1,500 Employees were recruited during the year; of these, 400 Employees were recruited because of exits and the rest were recruited in accordance with expansion plans.
Q3Overhead distribution and service department allocation
0 marks easy
SANDY Ltd. is a manufacturing company having three production departments, 'A', 'B' and 'C' and two service departments 'X' and 'Y'. [Detailed budget data provided with area, capital value, machine hours, horsepower, and apportionment ratios]
Q4Activity-based costing (ABC)
0 marks easy
Hygiene Care Ltd. is a manufacturer of a range of goods with cost structure for Hand Wash, Detergent Powder, and Dishwasher products. Hygiene Care Ltd. was absorbing overheads on the basis of direct labour hours. Management accountant has suggested that the company should introduce ABC system and has identified cost drivers and cost pools with associated costs and activity details.
Q5Cost of production calculation
0 marks easy
From the following data of Motilal Ltd., CALCULATE Cost of production: [Data includes repair & maintenance, insurance premiums, raw materials, wages, work-in-process values, quality control cost, R&D cost, administrative costs, scrap realization, and packing cost]
Q6Reconciliation of cost and financial accounts
0 marks easy
The financial records of Riva Private Limited showed a net profit of ₹1,69,500 for the year ended 31st March, 2022. The cost accounts, however, disclosed a net loss of ₹88,500 for the same period. [Detailed reconciliation items provided including overheads, depreciation, dividends, obsolescence, taxes, interest, stock valuations, goodwill, and provisions]
Q7Job and batch costing
0 marks easy
A jobbing factory has undertaken to supply 200 pieces of a component per month for the ensuing six months. Every month a batch order is opened against which materials and labour hours are booked at actual. Overheads are levied at a rate per labour hour. The selling price contracted for is ₹80 per piece. [Monthly data provided for batch output, material cost, direct wages, and direct labour hours for January through June]
Q8Contract costing
0 marks easy
XYZ LLP, contractors and civil engineers, are building a new wing to a school. The quoted fixed price for the contract is ₹30,00,000. Work commenced on 1st January 20X2 and is expected to be completed on schedule by 30 June 20X3. [Data provided for plant, materials, wages, expenses, supervisory staff, office expenses, and progress payments with additional information on depreciation, unused materials, accrued wages, budgeted profit, and certified work]
Q9Process costing using average method
0 marks easy
Dairy Wala Private limited is engaged in the production of flavoured milk. Its process involve filtration and boiling of milk after that some sugar, flavour, colour is added and then letting it cool to fill the product into clean and sterile bottles. For Producing 10 litre of flavour milk, 100 litre of Raw milk is required, which extracts only 45 litres of standardized milk. [Detailed process data provided for opening WIP, milk introduced, labour, overheads, abnormal loss, and closing WIP with degree of completion percentages]
Q10Joint product costing using NRV method
0 marks easy
Key Pee Limited produces and sells the following products: [Product data including units, selling prices at split-off point and after further processing, raw material cost, manufacturing expenses, and further processing costs for products A, B, C, D, and E]
Q11Service costing - power generation
0 marks easy
PREPARE cost statement of Panipat Thermal Power Station showing the cost of electricity generated per kwh, from the following data: Total units generated 16,50,000 kWh. [Data provided for operating labour, repairs & maintenance, lubricants, plant supervision, administration overheads, insurance, fuel charges, coal consumption rate, and depreciation on capital cost]
Q12Standard costing and variances
0 marks easy
XYZ Manufacturing Ltd. had prepared the following estimation for the month of January with standard quantities, rates, and costs for Raw Material-DF, Raw Material-CE, skilled labour, and semiskilled labour. Standard loss in the process was expected to be 10% of total input materials and an idle labour time of 5% of expected labour hours was also estimated. [Actual production data and chargeable expenses provided for comparison]
Q13Break-even analysis and marginal costing
0 marks easy
The following data are available from the budget records of Finesign Women's Handbag Company for the forthcoming budget period: Selling Price per unit ₹1000; Variable cost per unit includes Cost of Material used ₹750.00 and Sales commission ₹50.00; Annual fixed expenses include Rent ₹7,00,000, Salaries ₹11,00,000, and Other fixed expenses ₹5,00,000. Although the firm manufactures Bags with different styles, they have identical purchase costs and selling price.
Q14Budget and budgetary control
0 marks easy
EDF Ltd. produces two products using Skilled labour and two types of materials. Shown below the information for the next month's budget: [Product A and B budgeted sales, material consumption per unit, standard labour hours, material and labour costs provided. Additional information on worker efficiency, overtime, working days, and opening and closing stock levels]
Q15Cost accounting concepts and terminology
0 marks easy
Miscellaneous questions on cost accounting concepts and methods.