B.Com DCM2103 Cost Accounting

Description

SESSION	September 2023
PROGRAM	BACHELOR of COMMERCE (B COM)
SEMESTER	III
course CODE & NAME	DCM2103 – Cost Accounting
CREDITS	4
nUMBER OF ASSIGNMENTS & Marks	02 30 Marks each

 

Set – 1

Questions

 

1. A. Discusstheclassificationof cost on the basis of behaviour.

Ans:

Classification of Costs:

Costs incurred can be grouped according to some common characteristics.

Most popularly used classification of costs is as follows (detail explanation in the next chapter):

1. Based on the nature of time period like Historical Costs, Pre determined Costs
2. Classification

Its Half solved only

Buy Complete from our online store

 

https://smuassignment.in/online-store/

 

MUJ Fully solved assignment available for session SEPT  2023.

 

Lowest price guarantee with quality.

Charges INR 198 only per assignment. For more information you can get via mail or Whats app also

Mail id is aapkieducation@gmail.com

 

Our website www.smuassignment.in

After mail, we will reply you instant or maximum

1 hour.

Otherwise you can also contact on our

whatsapp no 8791490301.

 

1. Explain the causes of labour turnover.

Ans:

 

Causes of labour turnover:

The three categories below can be used to group the primary causes of labour turnover in an organisation or sector:

1. Personal Causes
2. Unavoidable Causes, and
3. Avoidable

 

2. The following information is in respect of Material.

Re-order quantity = 6000 units

Re-order period = 8 – 12 weeks 

Maximum Consumption = 1600 units per week

Normal consumption = 1200 units per week

Minimum consumption = 1000 units per week 

Emergency Re- order period = 4weeks 

Calculate: (a). Re-order level (b) Minimum Level (c) Maximum Level (d) Average stock level (e) Danger Level

Ans:

To calculate various inventory levels, we can use the following formulas: 

Re-order Level (ROL):  = Maximum Consumption × Re-order Period ROL=Maximum Consumption×Re-order Period

Minimum Level (

 

3. a. Discuss the various sources from where information of overheads can be collected?

Ans:Collecting information about overheads is essential for cost accounting and managerial decision-making. Overheads represent indirect costs that are not directly attributable to a specific product or service.

Here are

 

Set – 2

Questions

 

M Ltd. produced and sold are 5000 units @ ₹ 50 per unit. From given data prepare cost sheet with per unit.
Particulars	Amount	Particulars	Amount
Direct Material	100000	Office Rent	6000
Direct Wages	25000	Direct Expenses	10000
Office Stationery	1000	Wages Of Foremen	8000
Telephone Charges	250	Director’s Fees	2600
Advertising	3500	Depreciation-Factory	4000
Factory Rent	17000	Carriage Outwards	750
Factory Lighting	3000	Salesmen’s Salary	2500
Depreciation-Office	2400	Oil & water	1000

 

 

 

 

 

 

 

Ans: It appears you have a list of expenses categorized into direct and indirect costs. Let’s organize these expenses into different categories to understand their classification better: 

Direct Costs: 

Direct Material: ₹100,000

Direct Wages: ₹25,000

Office Stationery: ₹1,000

Telephone

 

 

5 a.  Explain the advantages of cost accounting.

Ans: Here are some advantages of cost accounting: 

Cost Control:  Cost accounting helps in controlling costs by establishing standards, comparing actual costs with standards, and identifying variances. This enables management to take corrective actions to control costs and improve efficiency.

Cost Planning:  It aids

 

1. Q Ltd. produces a product involving 2 distinct processes of manufacture. The identical units are introduced in process A and the entire output is transferred to process B.

From the following particulars prepare the relevant process accounts.

 

Particulars	₹
Materials
Process A (10560 units introduced)	395925
Process B	83415
Direct Labour
Process A	94500
Process B	198000

There was no opening or closing stock in process A and process B. Works overheads are absorbed @ 40% of Direct labour in all processes. There were no spoiled units in any process.

Ans:To prepare the relevant process accounts, we’ll create two accounts: one for Process A and another for Process B.

 

6. a. Explain operating costing its features.

Ans:Operating costing is a form of service costing that is applied to industries where the output is not homogeneous and cannot be expressed in terms of units. It is particularly suitable for businesses involved in providing services or producing customized products where the production process is

 

1. Explain any 5 reasons for differences in profit as per costing records and financial records.

Ans: Here are five common reasons for such differences: 

Treatment of Fixed and Variable Costs: 

Costing Records Perspective: Costing records often distinguish between fixed and variable costs for the purpose of product costing. Fixed costs may be absorbed based on a predetermined absorption rate, and variable costs are directly attributed to units produced.

Financial Records