Question Bank

Subject: MS22104 - Accounting for Management

Unit-3
Q. Mark
Question CL CO
No. s
Part-A
CO
1 Define cost accounting. 2 Re
3
CO
2 What do you mean by sunk cost? 2 Re
3
CO
3 What are the main features of job order costing? 2 Un
3
CO
4 What is a cost sheet? 2 Un
3
CO
5 What do you mean by costing system? 2 Un
3
CO
6 Define Job Costing. 2 Re
3
CO
7 Define Process Costing. 2 Re
3
CO
8 What are the objectives of Activity Based Costing? 2 Un
3
CO
9 What is Normal and Abnormal loss? 2 Un
3
CO
10 What are the treatment of abnormal loss and abnormal gain in process accounting? 2 Un
3
CO
11 Distinguish between normal and abnormal loss. 2 Un
3
CO
12 What is Work -in-Progress? 2 Un
3
CO
13 List out the features of process costing. 2 Un
3
CO
14 Distinguish between joint products and by- products. 2 Un
3
CO
15 What is mean by Joint Products? 2 Re
3
Part-B
i) Explain the concept of Job order costing. (8)
CO
1 16 Un
3
ii) Explain the different methods of Costing. (8)
The costing information related to the year ended 31st march 2022 of ABC Ltd is as
follows: CO
2 16 An
2
Prepare a cost sheet and find out the costing profit.
i) Discuss the methods of Joint Products and By Products. (8)
CO
3 16 An
3
ii) Differences between Process costing and Job costing. (8)
From the following details calculate prime cost, factory cost, cost of production , cost
of sales and profit from the following particulars. CO
4 16 An
3
 The following extracts of costing information relate to product Z for the year ending
31/12/2023 CO
5 16 An
3
Calculate the cost of production and extend the cost sheet to show the profit also.
The following extracts of costing information relate to product Z for the year ending
31/12/2023 CO
6 16 An
2
Calculate the cost of production and extend the cost sheet to show the profit also.
CO
7 Explain the elements of costing. 16 Un
3

i) Explain the applications of process costing in different industries. (8)

CO
8 16 Un
3
ii) What is Batch costing? Explain the procedures of determining of economic Batch
quantity. (8)
Prepare process cost accounts from the following data:
CO
9 16 An
3
.
CO
10 Explain the concept of Activity Based on Costing. 16 Un
3
Product X is obtained after it passes through distinct processes. You are required to
prepare process accounts from the following information. CO
11 16 An
3

Unit-4
Q. Mark
Question CL CO
No. s
Part-A
CO
1 Define Marginal Costing. 2 Re
4
CO
2 What is contribution? 2 Un
4
CO
3 What is P/V Ratio? 2 Un
4
CO
4 Give Marginal Cost equation & explain it. 2 Un
4
CO
5 What is Break Even Point? 2 Un
4
CO
6 What do you mean by Margin of Safety? 2 Un
4
CO
7 What is Target Costing? 2 Un
4
CO
8 List out the advantages of Marginal costing. 2 Un
4
CO
9 Define Break Even Analysis. 2 Re
4
The following information relating to a company is given to you calculate BEP
CO
10 2 An
4
CO
11 Define Make or Buy Decision. 2 Re
4
12 List out the features of Marginal costing. 2 Un CO
 4
CO
13 What do you mean by Exploring new markets? 2 Un
4
CO
14 What are the bases for add or drop the new product or existed product decision? 2 Un
4
CO
15 What are the types of contract costing? 2 Un
4
Part-B
CO
1 What is marginal costing? Discuss its Application. 16 Un
4
CO
2 Explain the concepts of Break Even Chart. 16 Un
4
From the following information relating to Ajin Pvt .you are require to find out

Ø P/V Ratio

Ø BEP
CO
3 16 An
4
Ø Profit

Ø Margin of safety

Ø Volume of sales to earn a profit

Two businesses Sell the same type of product in the same type of market.

Their budgeted profit and loss accounts for the coming year are as follows:

You are require to calculate BEP

CO
4 Ø The sales volume at which each business will earn 16 An
4
Ø State which business is likely to earn greater profit in conditions of:

 Heavy demand for the product

 Low demand for the product

A manufacturing company produces three products namely X,Y and Z. The

information related to the production and sales of these products for ending 30th June
2022 are as follows:
CO
5 Prepare a statement of cost by 16 An
4
a) Marginal costing method,

b) Absorption costing method.

CO
6 "Marginal costing is a valuable aid for managerial Decisions" - Discuss. 16 An
4
7 Assuming that the cost structure and selling prices remain the same in both the 16 An CO
periods, compute the following. 4

 Profit volume ratio

 BEP for sales
 Profit when sales are
  Sales required to earn a profit Safety margin in both the periods.

CO
8 Explain the applications of the Cost Profit Volume Analysis. 16 Un
4
The components of an item are manufactured by another unit under the same
management. The unit at present manufactures …… units the present requirements of
CO
9 the main factory) at the following cost: 16 An
4
Suggest which will be better.
CO
10 Explain the concept of Exploring New Market & Add or Drop products. 16 Un
4
Company A has three product lines, X, Y, and Z. The performance of all products
can be seen below: CO
11 16 An
4
As the cost accountant, please advise the company if they should drop produce Y.