BIRLA INSTITUTE OF TECHNOLOGY INTERNATIONAL CENTER, RAK- UAE

QUESTION BANK Department: Management Class: BBA Question Bank No: I Semester: IV Subject: Management & Control of Cost Subject Code: BBA 403 Date of Question Bank given to Students: 01/3/2010 Module No: 1 Module Coverage: Cost concepts and cost object, Methods of Costing, Techniques of Costing, Costing vis--vis other functions of an organization, Classification of Costs and Cost elements, Profit centre, Cost unit, Preparation of Cost sheet.

1. Define the term cost. Explain the important objectives of cost accounting. 2. Distinguish between Financial Accounting and Cost Accounting. 3. Explain the classification of cost according to responsibility. 4. What are the essential principles of a good costing system? What are the objections to the introduction of a costing system? 5. Explain Job costing. Also explain the variants of job costing. 6. How costs can be classified on the basis of their identification. Explain with suitable examples. 7. Write short notes on (i) Marginal Costing (ii) Absorption Costing. 8. What is cost accounting? Discuss briefly its importance and scope. 9. Explain the different methods of costing. 10. A good system of costing serves as a means of control over expenditure and helps to secure economy in manufacture. Discuss. 11. Distinguish between variable, semi variable and fixed cost. 12. Explain the meaning and features of relevant costs. Give suitable examples to support your explanation. 13. Explain the functional classification of cost.

14. Describe briefly the role of cost accounting in a manufacturing organization. 15. Explain the terms (i) Cost Centre (ii) Cost Unit 16. What does management expect of a costing system? 17. Distinguish between cost, expense and losses. 18. Define direct and indirect wages. Enumerate the considerations that need to be given to any type of labour to distinguish between direct and indirect wages. 19. Distinguish between expired cost and unexpired cost. 20. The classification of costs as controllable and non- controllable depends upon a point of reference. Explain. 21. Enumerate the characteristics of fixed and variable costs. 22. State the important ways of classification of cost and discuss each of them in detail. 23. Distinguish between cost centre and profit centre. 24. Why is cost accounting necessary? Mention steps which should be taken to install a cost accounting system. 25. Explain in brief (i) Product cost (ii) Relevant range (iii) Batch costing. 26. What are the essential principles of a good system of cost accounting?