Q.

1)
(a) Match the following correctly:
Pareto distribution Cost reduction
Set : 4
Angle of incidence Semi-variable cost
Standard costing Engineered cost
Electricity under taking Prot earning capacity
Direct materials Cost control Telephone
charges perating costing
!argin of safety
A"C analysis
#elevant cost
(b) Fill in the blanks suitably:
$i% T&o broad methods of costing are '''''''''''' and ''''''''''''
$ii% A cost &hich does not involve any cash out (o& is called '''''''''''' or
$iii% #eorder level is '''''''''''' multiplied by '''''''''''')
$iv% The normal value of current ratio is '''''''''''' and that of *uick ratio is
$v% !argin of safety is '''''''''''' or '''''''''''')
$vi% !aterial usage variance is the sum of '''''''''''' and '''''''''''')
(c) Choose the correct answer from the brackets gi!ing brief workings:
$i% The budgeted annual sales of a rm is #s) +, lakhs and -./ of the same is cash sales) 0f the
average amount of debtors of the rm is #s) . lakhs1 the average collection period of credit sales
'''''''''''' months)
$23-4 2 4 2)23-%
$ii% A rm re*uires 251,,, nos of a certain component &hich it buys at #s) 5, each) The cost of
placing an order and follo&ing it up is #s) 2-, and the annual storage charges &orks out to
2,/ of the cost of the item) To get ma6imum bene t the rm should place order for
'''''''''''' units at a time) $2,,,4 7,,4 +,,%
$iii% The repairs and maintenance of machinery in a factory is found to be a semi-variable cost having
some relationship &ith the no) of machine hours run) 0t &as #s) 281.,, during ctober -,,9 for
81.,, machine hours &orked and #s) 2.19,, for :ovember -,,9 &hen only .19,, machine hours
&ere &orked) The budgeted cost of repairs and maintenance for December -,,9 &hen 51-,,
machine hours are e6pected to be &orked &ill be #s) '''''''''''' $281-,,4 251+,,4 251-,,%
$iv% The standard variable overhead cost of a product is #s) 2, $. hours ; #s)
-3hr)%) 0n a certain months it took 21+,, hours at a cost of #s) 91-,, to
manufacture 9,, units) The variable overhead e6penditure and efficiency variances
are '''''''''''' and '''''''''''' respectively) <#s) 5,, $=% and #s) 9,, $=%4 #s) 5,, $A%
and #s) 9,, $=%4 #s) 5,, $=% and #s) 9,,$A%>
"ns.1)
(a) Match the following correctly:
Pareto distribution A"C analysis
Angle of incidence Prot earning
capacity Standard costing Cost
Control Electricity undertaking
perating Costing Direct materials
Engineering Cost Telephone charges
Semi-variable cost
(b) $i% Specic order costing1 peration Costing
$ii% :otional Cost1 0mputed Cost
$iii% !a6imum usage1 !a6imum lead period
$iv% -12
$v% Sales minus ")E) Sales1 Prot 3 $C3S%
$vi% !i6 variance1 ?ield variance
(c) $i% @ 2 month4 $ii% @ +,, unit $EA%4
$iii% #s) 251-,,4 $iv% @ Bariable overhead e6penditure variance C #s)5,, $A%