4

10. Describe the essential steps of a Budgetary

control system.

Fixed Overheads Variance.

11. From the following information, compute :

(i)
Expenditure Variance.

Actual

(ii)
(iii) Volume Variance.

10,000

10,400

Rs. 20,000 Rs.20,400

Budget

Efficiency Variance.

(iv) Capacity variance.

(v)

Fixed overheads for

November
Unit of production
in November

2 hours
- 20,100 hours.

Standard time for 1 unit Actual hours worked

Register Number :

Name of the Candidate :

5 58 8

M.Com (ACCOUNTING AND FINANCE)

DEGREE EXAMINATION, 2008

( SECOND YEAR )

( PAPER - X)

(5 8 = 40)

[ Time : 3 Hours

650. COST CONTROL TECHNIQUES

December ]

Maximum : 100 Marks

SECTION - A

Answer any FIVE questions.

All questions carry equal marks.

1. Mention the causes for low productivity in

organizations.

2. Briefly explain the limitations of budgetary

control.

3. What is standard costing ? State its advantages.

4. What is meant by cost volume profit analysis.

Explain its importance.

Turn over

- Rs. 4 per unit.

- 6,000.
- Rs 350 per hour

Standard wage rate

Actual hours

Actual wage rate

- Rs. 2 per unit.

- Rs. 20 per unit.

Variable cost

Selling price

express the margin of safety available to it.

If the company is earning a profit of Rs. 36,000,

- Rs. 1,80,000.

Fixed overhead

earn a profit of Rs. 36,000.

7. From the following information, calculate the

break - even - point and turnover required to

300 hours.

Time lost on account of machinery breakdown

- 5,000.

Standard hours

variance :

labour efficiency varinance and idle time

Rs. 050 each.

Other variables

(3 20 = 60)

625

and cost reduction.

reduction ? compare and contrast cost control

9. What do you understand by the term cost

All questions carry equal marks.

Answer any THREE questions.

SECTION - B

Should you make or buy ?

other fixed cost

Rs. 125 each.

Rs. 175 each.

Labour

Depreciation and

Rs. 275 each.

Materials

supply. The break down of cost is :

Rs. 485 each, with an assurance of continued

it costs Rs. 625 to make each component X

2730, the same is available in the market at

8. A radio manufacturing company finds that while

5. Write a note on the problems in transfer pricing.

6. Using the following information, calculate

labour cost variance, labour rate variance,

(iv) Profit when sales are Rs. 10,00,000

(iii) The number of units to earn a

profit of Rs. 40,000.

(ii)

(i)
The number of units to break even.

The amount of fixed expenses.

The selling price per unit can be assumed

at Rs. 100.

(iv) Profit when sales are Rs. 10,00,000

(iii) The number of units to earn a

profit of Rs. 40,000.

(ii)

(i)

The number of units to break even.

The amount of fixed expenses.

12. From the following information, calculate :

The selling price per unit can be assumed

at Rs. 100.

The company sold in two successive

periods 7,000 units and 9,000 units and
has incurred a loss of Rs. 10,000 and earned
Rs. 10,000 as profit respectively.

12. From the following information, calculate :

The company sold in two successive

periods 7,000 units and 9,000 units and
has incurred a loss of Rs. 10,000 and earned
Rs. 10,000 as profit respectively.

13. What are the various methods of inventory

valuation ? Discuss the importance of each

method on working and results.

13. What are the various methods of inventory

valuation ? Discuss the importance of each
method on working and results.