Transcription
Chapter 1: Introduction to Cost Accounting 2016Financial ManagementBachelors of Business (Specialized inFinance) –Tutorial QuestionsChapter 1: Introduction to CostAccounting1Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Practice QuestionsQuestion 1“Cost Accounting System is neither unnecessary nor expensive, rather it is profitableinvestment”, Comment.Question 2Discuss the characteristics of an ideal system of Cost Accounting and differentiate between costaccounting and financial accounting.Question 32Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 4How do managers decide whether a cost is a direct or an indirect cost?Question 5How do managers decide whether a cost is a variable or a fixed cost?Question 6How should costs be estimated?Question 7What are the three key features of cost accounting and cost management?Question 8Question 93Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 10Question 11Question 12Question 134Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 145Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 15Question 16Question 17Question 18Calculate prime cost from the following information:Direct material - MVR 40,000, Direct labour - MVR 30,000 Direct expenses - MVR 25.000Question 19Calculate prime cost from the following information:Opening stock of raw material MVR 12,500Purchased raw material MVR 75,000Expenses incurred on raw material MVR 5,000Closing stock of raw material MVR 22,500Wages MVR 47,600 Direct expenses MVR 23,4006Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 20Calculate works cost or factory cost from the following details:-Raw material consumed MVR 50,000Direct wages MVR 20, 000Direct expenses MVR 10,000Factory expenses 80% of direct wagesOpening stock of work in progress MVR 15,000Closing stock of work in progress MVR 21,000Question 21Calculate cost of production from the following information:Raw material purchased MVR 42,500Freight paid MVR 5,000Labour charges MVR 12,500Direct expenses MVR 10,000Factory overhead 80% of Direct labour chargesAdministrative overhead 10% of work costOpening stockClosing stockRaw material8,00010,000Work in progress7,5009,0007Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 22Prepare cost sheet from the following particular in the book of B. M. RehmanRaw material purchased MVR 120,000Paid freight charges MVR 10,000Wages paid to laborers MVR 35,000Directly chargeable expenses MVR 25,000Factory on cost 20% of prime costGeneral and administrative expenses 4% of factory costSelling and distribution expenses 5% of production costProfit 20% on salesOpening stock8Closing stockRaw material15,00020,000Work in progress17,50024,000Finished goods20,00027,500Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 23Prepare cost sheet in the book of M. B. Rehman from the following particulars.Opening stock: -Closing stock: -9Raw material MVR 5,000Finished goods MVR 4,000Raw material MVR 4,000Finished goods MVR 5,000Raw material purchased MVR 50,000Wages paid to laboures MVR 20,000Chargeable expenses MVR 2,000Rent and Taxes MVR 7,400Power MVR 3,000Experimental expenses MVR 600Sale of wastage of material MVR 200Office management salary MVR 4,000Office printing & stationery MVR 200Salaries to salesman MVR 2,000Commission to traveling agents MVR 1,000Sales MVR 100,000Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 24The cost of sale of production ‘A’ is made up as follows:Material used in manufacturingMVR 5,500Material used in packing materialMVR 1,000Material used in selling the productMVR 150Material used in the factoryMVR 175Material used in the officeMVR 125Labour required in productionMVR 1,000Labour required for supervision in factoryMVR 200Expenses direct factoryMVR 500Expenses indirect factoryMVR 100Expenses officeMVR 125Depreciation of office buildingMVR 75Depreciation on factory plantMVR 175Selling expensesMVR 350Freight on materialMVR 500AdvertisingMVR 125Assuming that all products manufactured and sold, what should be the selling price be fixedto obtain a profit of 20% on selling price.10Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 25Mr. Zia furnishes the following data related to the manufacture of a standard product duringthe month of August 2008Raw material consumed-MVR 15,000Direct labour-MVR 5,000Machine hours worked-MVR 900Machine hour rate-MVR 5Administration overheads-20% of works costSelling overheads-MVR 0.50 per unitUnit produced-MVR 17,100Unit sold-16,000 @ MVR 4 per unitYou are required to prepare a cost sheet from the above showing:(a)(b)The cost per unitCost per unit sold and profit for the periodQuestion 2611Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 27Question 28Question 2912Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 30Question 31Question 3213Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 33Question 3414Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 35Question 3615Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 3716Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 38Question 3917Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016Question 4018Ibrahim SameerBachelors of Business – Finance (CMA – Cyryx College)
Chapter 1: Introduction to Cost Accounting 2016 9 Ibrahim Sameer Bachelors of Business – Finance (CMA – Cyryx College) Question 23 Prepare cost sheet in the book of M. B. Rehman from the following particulars. Opening stock: - Raw material MVR 5,000 Finished goods MVR 4,000
