(a) 76,0oo
eR84,000 (b) 1,18,000
50.T
Company (d) 1,01,000
manufactures computer stands.
1,07,000; isthe ending What
Cost of Goods Sold is is the
opening
and Cost of Goods balance of Finished stoc
Manufactured 50,000 less than Cost Good
a)R 70,000 of Goods S
(6) R 77,000
(c) 1,57,000
51.The following data relate to two (d) 1,27,000
Machine Hours output levels of a
department:
Overheads () 17,000 18,500
The variable overhead rate 2,46,500 2,51,750
per hour is 3.50. The amount of fixed
(a) 5,250 overheads is
(6)R59,500
R1,87.000 (d)R 2,46,500
19.2 FILL IN THE BLANKS
1. COL is a measurement, in monetary terms, of the amount of resources used for the
of production of goods or rendering services. purp
2.(OSINheans the process of ascertainment of costs.
3. i s the guldance and regulation by executive action of the costs of operating an underta
4. couis the process
of accounting for the costs from the
point at which expenditure is ingu
an smentof its ultimate relationship with cost centres and cost units.
5.C o f costs is the arrangement of items of costs in logical groups having regara ir
nature or purpose.
6. SUbjective / Objective) Classification of costs is the arrangement of items of costs
logical groups having regard to their nature.
7.
(Subjective KObjective)to Classification of costs is the arrangement of items of c o s
logical groups having regard their purpose.
8. Costs are classified, on the basis ofbera into Fixed Cost, Variable Cost and Semi-ixe o
Semi-variable cost.
9. Costs are classified, on the basis of behaviour, into Fixed Cost, Variable Cost and Semi-fixea or
Semi-variable cost, depending upon the response to the changes in evelm
are classified, on the basis of behaviour, into Fixed Cost,
Variable Cost and COst.
10.Costs
11.EyeoCost is the cost which does not vary with the change in the volume of activity in tne sno
run.
in the short
12. Fixed Cost is the cost which does not vary
with the change in the volume of h
run.
in the volume of activity in the .
13. Fixed Cost the cost which does not vary with the change
is
(long short) run.
tends to directly vary with the volume of
activity.
14.U0aCost is the cost of elements which
which tends to directly vary with of activity. the
15. Variable Cost is the cost of elements costs.
and (b) Variable o
two parts (a) Variable Direc cost;
16. Variable cost has
both fixed and variable elements.
17. Costs contain or producing goods or
services.
18. Hste Costs are the
actual costs of acquiring assets
in advance of production, on the
basis of a specification
19. costs for a product are computed
cost and cost data.
of all the factors affectingcalculated in advance of production or even before accepting sales
are costs
20. E costs
order variable costs.
21.Mo Cost is the aggregate of overhead.
of prime cost plus variable
22. MoI Cost is the aggregate actual cash payment computed
is hypothetical or notional cost not involving any
23. ImpCostpurpose of decision-making.
only for the cost which is incurred in the past, and not
relevant to the decision
Cost is historical
24.2 at present.
made by the management
required tg be or atypical cost whose occurrence
is usually irregular and unexpected
25.HbnolCost is an unusual the production.
abnormal situation of
and due to some
Material Cost
111
15.2 FILL IN THE BLANKS
request pra speciti
1. R e a S H i o n
item made in
writing to the
Purchase Department is called a Purcnase
Purchase oraeis a contract between the purchaser and the supplier for the
on agreedmeceivec note supply of materna
Once
3 and the is Tssued by the Stores the material becomes
responsibility of the Stores. the property of the purchasing company
The initial sancion g the
4.
known
mauntity in respect of a job or contractis made through a document
5. Abnomal losses in stock.
(are /are pot) charged to cost of
-
6. Loss due to evaporation is a
(normal production.
materials. avojdable / normal unavoidable/abnormal) loss of
7. The formula for calcylating economic order quantity is EC
8. In ABC analysis,
-(A7B/C) Category of items are about 10% of items having 70% of
value.
9. Under the.
-(Pepétual /
Periodical) inventory system, closing stock is ascertained from
the stock ledger itselt,
after each
receipt or issue.
10.Bin card is maintained by the SEorekeefer
11 Abnoma 8 ofmaterials are charged to osprd L e s NC
12.Reordls that leyelo materials at which new order for material is to be placed.
a
13.eofdleYepreaents that quantity of material which is normally ordered when the materials reacn
ordering level.
14.Under the ABC technique 'A' stands for
value items lepavtmen
15.GoodsReceived Note is prepared by theRcceiuna
Hgh
16. Sonand as shown by the bin cards should agree with quantities on the
17.Under the Method, a new issue price is determined after each purchase.boeigkked
18.The formula for fixing minimum stock
level is eofcle Meve
19. The two perpetual inventory records are incaland lorc Jedgeh
20. A method of recording balances after every receipt
and issue to facilitate regular
obviate closing down for stock taking is known as PeLpel uak 1ANeo checkingand to
21. Two important opposing factors in fixing the economic order
oforttC and cost quantity are cost
of cOa stock,Aoc
22. The method of regular physical verification of materials throughout the year is known as conhruS
stock-taking. outre
23. iscount is a special type of discount allowed for bulk purchases.
4. a documept n which is recorded the transfer of materials from one job or department
to anothe. Maferi Cu
25. is a document which authorises and records the issue of materials for use.Marerua
26. IntFOmethod stock is valued at the latest price paid.
-is a document which records the retun of unused materialsMaheuala Rekuun
NOte
15.3 MATCH THE FOLLOoWINGCOLUMNS
cOLUMN B
cOLUMN A
(A) ABC Analysis Purchase requisition note
(B) Perpetual inventory Selective control
(C) Abnormal material losses . Stores requisition note
4. Costing P&L A/c
(D) Master requisition
Issuing a material item to production 5. Continuous stock-taking
(F) First step in purchase 6. Bill of material
Introductio CostAccounting 31
RouOCb
o
26.- Costs are inescapable costs which are essentially to be incurred, within the imis
noms prQVided for.
27.d
ertost is the change in cost due to change in activity from one level to anothert
28.f an expenditure can be allocated to a cost centre or a cost unit then it is called Aif
is also known as ONeaheao
29.Indirect cost
0. Cost enHtis any unit of cost selected with a view of accumulating all costs under that unit.
31. Cost A i s a form of measurement of volume of production or service.
32 cOst centre
(préct /
Indirect) Material Cost is the cost of material which can be readily allocated to
ora cost object in an economically feasible way.
a
(Disect / Indirect) Labour Cost is the cost of wages of those workers who are readily
33..
identified or linked with a cost centre or cost object.
direct material or direct labour
34. Direct Expenses are the expenses - /
(such as
other than)
which can be identified or linked with the cost centre or cost object.
to be applied to a classified set of items to give a brief
35.(od is "a system of symbols designed collation and analysis."
account reference, facilitating entry
unit of product or service in relation to which ascertained.
costs are
36.AO Sa
is an expenditure which can be economically identified with
and specifically
37.A Pireclcost
measured in respect to a relevant cost object.
38. r i cost i_ the total cost of direct material, direct labour and direct expenses.
materials or services which cannot be
39.An OUI Orecy tost is an expenditure on labour,
economically identified with a specific saleable cost unit. for which
or service location, function, activity or item of equipment
40.A cost enu_is a production
costs are accumulated.
cost which is incurred for an accounting period and which tends to be
41.A XeLcost is a
fiuctuations in the levels of activity.
unaffected by
42.A Wou cost is a cost which related to output.
is directly
43.Cost Accounting Standard deals with Material Cost.
19.3 MATCH THE FOLLOWING
COLUMNB
[A cOLUMNA (a) Financial Accounting
1. Amount of resources used for
production of goods (b) Capital expenditure md.ds
Cost accounting records (c) Intermal records
Used by investors, creditors (d) Cost Accounting rmevc.SE
3.
Cost control (e) Cost
4.
Reduction of costs
(
(g) Regulation of costs
cOLUMN B
cOLUMN A
[B] Remains constant per unit
1. Total fixed cost (a)
(b) Cost not assigned to products
2. Total variable cost
(c) What cost should be?
3. Unit variable cost
(d) Remains constant in total
4. Unit fixed cost be
(e) What costs are expected to
5. Standard cost
() Decreases with rise in output
. Period cost
(g) Added value of a new product
Actual cost ige
(h) Incurred cost
8. Labour and overhead
() Cost of conversion
9 Incremental cost
G) Increase in proportion to output
10. Budgetedcost8
bo loeisod) tunoie
Income From Investments 4,00,000
Reconciliation statement will show
(a) Loss as per Financial records 13,87,440(b) Profit as per financial records -2,92,560
(c) Profit as perfinancial records- 5,87,440 ( 6 s s as per Financial records - 587,440
12.2 FILL IN THE BLANKS
1. Interest paid on Loans appears only in. (finapeial/ cost) accounts.
2. Notional Remuneration to Owner appears onily in . (financial / cost) accounts.
3. Discount on lssue of Debentures appears only in . (financial/cost) accounts.
4. Notional Interest charged to owner for drawings appears only in . (financial /c96t) accounts.
5. Loss on sale of Investment appears only in (finaneial/cost) accounts.
6. Income Tax appears only in, (financial/ cost) accounts.
7. Dividend received appears only in . - (finaricial/cost) accounts.
8. Damages awarded by Court appear only in. (finanefal/ cost) accounts.
9. Expenses which appear only in Cost Accounts and not in Financial Accounts are generally
(nqtional/ actual) items.
10.Under system, there is no need of reconciliation of cost and financial accounts. 1ntegratg
12.3 MATCH THE FOLLOWING
COLUMNA COLUMNB
LA1
1. Interest paid on Loans (a) Income credited only in Cost Accounts
ae dobitod onhy in the Einancial
and Cost Sheets
EM-V) tration of COSIS 367
FILL IN THE BLANKS
production overheads shall be absorbed in production cost based on-
he varia
normal) Capacity. -(acual
charges levied by
y demurrage transport -(shall / shall ot) form part of the cost of
,000 mateeceivable with respect to any material shall be -
Subsidy
(added to/ reducodfrom) cost of
m a t e r i a l s .
materials
primary packing
cost of secondary a l l / shall not) form part of the cost of production.
packing materials shall form part (works/ distriburtion) overheads.
.000 Coial Cost (Ingbdes excludes) cost of procurement, freight inwards, taxes &auue
Matee etc. directly attributable to the acquisition.
insdiscounts, rebates, duty drawbacks, refunds on account of modvat, cenvat, sales tax and
nersimilar items are
other s
(added / deducted) in determining the costs of material
(includes / excludes) salaries and wages paid to temporary employee5.
Labour
9. LabourCost. -(includes/excludes) salaries and wages paid to employees of the contracto
Production 15.000units,
10its, Cost of Sales
Closing Stock of finished Goods 8.000 units.Openingeo
1 5 per unit, Profit @ 25% on sales. Sales amount to
Price 3 0 per
Sales2,40,000, Opening Stock 200 units, and Closing Stock 2,200 units, Selling
unit.
of units
The number producedO00 of
Prime Cost4,77,000, Direct Labour Cost 2,90,000, Direct Expenses 7,000; Cost Haw
materials
is ikO1c00
consumed
Direct Labour
Direct Material Cost 45,000, Direct Expenses 12,000.
13.Prime Cost2,000,
Cost i s 1 2 8,000. Prime Cost is T2,000
14.Work Cost 80,000, Factory Overheads
being 175% of works overheads. Factory
17,500
overheads are o
Labour Cost
15.Direct & Administrative Overheads 25% of Works Cost
16.Cost of Goods produced2,00,000, Office
Works cost is COLOO is
Office & Adm. Overheads 25% of Work
Cost. Cost of goods produced
17.Works Cost 1,00,000,
is
25% of Work Cost. Cost
of goods produced
1,00,000 being
18.Office& Adm. Overheads
0 0 OCO
1,20,000, Profit 20% on Sales. Cost of Sales are 61oe
19.Sales O0000
1,20,000, Profit 20% on cost. Cost of Sales are
20.Sales Profit isR500oO
21.Cost of Sales 1,20,000, Profit 20% on Sales.
Profit 20% on Cost. Profit
is O,000
1,20,000,
22.Sales
1,20,000, Profit 20%
on Sales. Sales amount to Oor0
of Sales 20,000
23.Cost 20% on Cost amounted
to 20,000. Sales amount to
24. Profit
MATCH THE FOLLOWING
5.3
cOLUMN B (Applicable)
cOLUMN A (Method )
[A] Where Job is large and executed on
site
(a)
Job costing (not in-house)
Batch Costing Ascertainment of Costs in cases where
(b)
Contract Costing services are rendered
is
4. Single or Output Costing (c) The cost of production
at each stage
Process Costing ascertained separately
Operating Costing Where all costs can be directly charged
o.
(d)
Multiple Costing to a specific job
Combination of two or more methods
(e)
of costing
Where all costs can be directly charged
()
to a group of products
(g) Cost ascertainment for a single product
Lavo
14.3 FILL IN THE 203
BLANKS
1. means keeping a record of
actual work, idle time, the attendance of the workers and
idle overtime, etc. Tme the time spent by them in
2 means the recording of Keeping
the time spent bya worker on
at the factory. Tme different Jobs during his attendance
Time booking basically
3. is
Boekn
A1oh Card is record ofperformed
a
the
by preparing aob Card.
work done by a worker, indicating
time spent against each the jobs done by him and the
as job.
5. If the Overtime is , (normal/ abnopíal), it debited to Costing Profit& Loss Account.
6 is the time spent
beyond the normal working hours which is usually paid at a
than the normal time rate. ONesthme higher rate
1ou time is the difference between the time for which the employees are
paid and the
employees' time booked against the cost object.
8. Labour Efficiency
(%) (Time Allowed as per standard/ Time toke) x 100.
=
9. Time rate system A (is/ is not) suitable in case of quality control.
10. Piece rate system S ne (is / is not) suitable if the output depends on team work.
11. Under i m e (Time / Piece) Rate System, worker assured of a steady and regular income.
12.me (Time/ Piece) Rate System treats both efficient ans inefficient workers equally.
1S
for 14.4 MATCH THE FOLLOWING COLUMNS
SIC
Match the Terms in A with the Statements in B
COLUMN A (Terms
