Important Questions

Cost Accounting
Q .1 What is Cost Accounting? Explain its objectives and advantages.
Q. 2 The ordinary trading account is locked store-house of most valuable
information to which cost accounting is the key.” Elucidate the above
statement and explain the difference between Financial and cost
accounts.
Q. 3 What is meant by cost accounting? Discuss the characteristics of an
ideal system of cost accounting.
Q. 4. Explain the different methods of Cost Accounting and state the
industries in which they can be applied.
Q. 5. What do you understand by ‘Elements of Cost’? Explain different
elements of cost.
Q. 6. Explain the different components of total cost with examples.
Q. 7. Explain clearly the concept of Material Mention the main requisites
of an adequate system of materials control.
Q. 8. What do you understand by Minimum Stock Level, Maximum
Stock Level, Re-order Level and Average Stock Level?
Q. 9. Explain the important methods of pricing of materials issued and
state which of these methods is best in your opinion?
Q. 10. What is• an incentive plan for wage payment? Discuss its
importance. Distinguish between Halsey and Rowan system of wage
payment.
Q. 11. What is the difference between apportionment of overheads and
absorption of overheads? What are the different methods of absorption
of factory overheads? Discuss any two of these in detail giving their
merits and demerits.
Q. 12. What do you mean by Cost-sheet? What are its advantages? Why
is it prepared? Prepare a cost sheet with imaginary figures.
Q. 13. Discuss the reasons for difference in results as shown by Cost
Accounts and Financial Accounts. How will you reconcile them?
Q. 14. Define Process Costing. Describe the general principles of this
type of costing and give its salient features. To which industries is this
method applicable?
Q. 15. Explain Normal Wastage, Abnormal Wastage and Abnormal gain
and state how they should be dealt with in Process Cost Accounts?
Q. 16. What is meant by ‘Job costing? Differentiate between job costing
and process costing.
Q. 17. What is meant by retention money in context of contract costing?
What is its objectives?
Q. 18. “The value of scrap generated in a process should be credited to
process account.” Do you agree with this statement?
Q. 19. What do you understand by Operating Costing? Describe its
essential features and state where it can be usefully implemented?
Practical topics:

1) LIFO, FIFO, Simple Average, Weighted Average

2) Labour turnover techniques
3) Incentive plans
4) Allocation of overheads
5) Cost sheet
6) Job costing
7) Contract Costing
8) Process Costing
9) Operating Costing