PREMIER ACADEMY

No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28,
07418548404 visit www.premieracademy.in www.cahariharan.blogspot.com
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COSTING AND FINANCIAL

MANAGEMENT
IMPORTANT THEORY QUESTIONS
FOR CA IPCC – May.2015 EXAM
1) Short notes:
- Cost Driver
- Responsibility centre
- Differential cost
- Pre-production cost
- Opportunity cost
- Cost Object
- Out-of-pocket cost
- Conversion cost
- Retention money
- sunk costs
- Discretionary costs
- Escalation clause
- Idle time
- ABC analysis
- Key factor
- integrated accounting system
- split off point
- Angle of incidence
- External Commercial Borrowings (ECB)
- Debt securitization
- Zero Coupon Bonds
- Aging schedule

2) Differentiate:

CA IPCC – May.15 Exam FB id: CA K HARIHARAN 1|Page

 - Product costs & period costs
- Controllable & uncontrollable
- Implicit costs& explicit costs
- Bin Cards & Stores Ledger
- cost reduction and cost control
- cost centre vs. cost unit
- Scrap & wastage
- Spoilage & defective
- Casual Worker and Outworker
- Allocation and apportionment
- BOM Vs.MRN
- VED, FSN
- Perpetual inventory & continuous stock taking
- Time Keeping and Time Booking
- Job Evaluation & Merit Rating
- Marginal costing and absorption costing
- Fixed and flexible budget
- Blanket overhead rates & departmental rates
- Job & contract costing
- Operation cost & operating cost
- Job costing & process costing
- Job Vs. batch costing
- Joint-product and by-product
- Profit maximization vs. wealth maximization
- Implicit vs. Explicit cost of capital
- Working capital cycle
- Open ended & close ended lease
- Business risk & financial risk
- funds flow statement & cash flow statement
- ADR Vs. GDR
- Concentration banking & lock box system
- Miller – Orr cash management model
- Bridge finance and seed capital assistance

CA IPCC – May.15 Exam FB id: CA K HARIHARAN 2|Page

 3) Discuss the concept of overtime premium & its accounting treatment
4) Identify the causes of labour turnover

5) Enumerate the objectives of cost accounting

6) Discuss essential features of a good cost accounting system
7) Methods of segregating Semi-variable costs into fixed and variable costs
8) Costs which are associated with labour turnover
9) Treatment of under-absorbed overheads in cost accounting
10) List down the advantages of cost plus contract
11) Discuss the accounting treatment of by-product
12) Discuss cost-volume-profit analysis
13) Discuss General ledger adjustment account
14) Costing accounting treatment of under absorption and over absorption of
overhead
15) Discuss the role of CFO.
16) List down the functions of the treasury department:
17) Enumerate the pre-requisites for integrated accounts
18) Identify the causes for differences between Income under cost and
financial accounts
19) Discuss basic aspects of financial management
20) List down characteristics of source of funds
21) Different types of packing credit facilities
22) List down the features of commercial papers
23) Discuss the types of floats in the context of cash management
24) Discuss the procedure for factoring
25) Methods of computation of time value of money
26) List down the assumptions in capital structure theories
27) List down the assumptions under Modigliani and miller approach (MM)
28) Brief on concept of trading on Equity
29) Discuss Modified internal rate of return method
30) Define optimum capital structure and its benefits.
31) Need for debt service coverage ratio
32) Discuss Du Pont chart for calculating return on equity
33) List down methods of Venture Capital Financing
34) Briefly discuss lease financing
35) Discuss on ploughing back of profit

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