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{"id":5453,"date":"2021-08-07T13:36:50","date_gmt":"2021-08-07T07:51:50","guid":{"rendered":"https:\/\/eponlinestudy.com\/?p=5453"},"modified":"2021-08-07T13:36:50","modified_gmt":"2021-08-07T07:51:50","slug":"cost-and-management-accounting-syllabus-and-model-question-bbs-second-year","status":"publish","type":"post","link":"https:\/\/eponlinestudy.com\/cost-and-management-accounting-syllabus-and-model-question-bbs-second-year\/","title":{"rendered":"Cost and Management Accounting | Syllabus and Model Question"},"content":{"rendered":"

\"\"\u00a0<\/span><\/p>\n

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Bachelor of Business Studies (BBS)<\/span><\/b><\/p>\n

Programme objective<\/span><\/b><\/p>\n

The\u00a0 objective\u00a0 of\u00a0 the\u00a0 BBS\u00a0 programme\u00a0 at\u00a0 the\u00a0 FOM\u00a0 is\u00a0 to\u00a0 develop\u00a0 students\u00a0 into\u00a0 competent\u00a0 managers\u00a0 for\u00a0 any sector\u00a0 of\u00a0 organized\u00a0 activity.\u00a0 The\u00a0 programme\u00a0 is\u00a0 based\u00a0 on\u00a0 the\u00a0 principle\u00a0 that\u00a0 graduates\u00a0 will\u00a0 spend\u00a0 a\u00a0 major portion of their life in a constantly changing environment. Therefore, the student should have an opportunity to\u00a0 obtain\u00a0 a\u00a0 broad\u00a0 knowledge\u00a0 of\u00a0 the\u00a0 concepts\u00a0 and\u00a0 reality based skills\u00a0 underlying\u00a0 the\u00a0 operation\u00a0 and management of organizations.<\/span><\/p>\n

Upon graduation, students should be equipped to function as a manager in business, industry and government. <\/span><\/p>\n

The\u00a0 graduate\u00a0 should\u00a0 also\u00a0 have\u00a0 a\u00a0 variety\u00a0 of\u00a0 career\u00a0 opportunities\u00a0 in\u00a0 different\u00a0 sectors\u00a0 of\u00a0 business\u00a0 including entrepreneurship and create much needed jobs for others.<\/span><\/p>\n

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The BBS programme specially attempts to:<\/span><\/b><\/p>\n

1.<\/span> Equip the students with the required conceptual knowledge of business and administration to develop a general management perspective in them. <\/span><\/p>\n

2. Develop required attitudes, abilities and practical skill in students, which constitute a foundation for their growth into competent and responsible business managers.<\/span><\/p>\n

3. Encourage\u00a0 entrepreneurial\u00a0 capabilities\u00a0 in\u00a0 students\u00a0 to\u00a0 make\u00a0 them\u00a0 effective\u00a0 change\u00a0 agents\u00a0 in\u00a0 the Nepalese society.\u00a0\u00a0 <\/span><\/p>\n

4. Develop\u00a0 necessary\u00a0 foundation\u00a0 for\u00a0 higher\u00a0 studies\u00a0 in\u00a0 management\u00a0 and\u00a0 thereafter\u00a0 take\u00a0 up careers\u00a0 in teaching, research and consultancy.\u00a0\u00a0\u00a0 <\/span><\/p>\n

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Curricular structure <\/span><\/b><\/p>\n

The\u00a0 FOM\u00a0 recognizes\u00a0 the\u00a0 need\u00a0 for\u00a0 both\u00a0 breadth\u00a0 and\u00a0 depth\u00a0 in\u00a0 the\u00a0 total\u00a0 academic\u00a0 pattern.\u00a0 <\/span><\/p>\n

Therefore, the curriculum for BBS degree comprises four separate and distinct course components:<\/span><\/p>\n

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1.<\/span> A strong foundation\u00a0 allied areas of business such as language, economic analysis, legal environment and\u00a0\u00a0 quantitative\u00a0\u00a0 method\u00a0\u00a0 to\u00a0\u00a0 prepare\u00a0\u00a0 graduates\u00a0\u00a0 to\u00a0\u00a0 understand,\u00a0\u00a0 analyze\u00a0\u00a0 and\u00a0\u00a0 comprehend\u00a0\u00a0 the management concepts, theories and practices. <\/span><\/p>\n

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2.<\/span> Core business studies encompassing and integrating all functional areas to provide graduates with and appreciation of the diversity and inter-relationship of business and management issues. <\/span><\/p>\n

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3.<\/span> The\u00a0 opportunity\u00a0 to\u00a0 concentrate\u00a0 in\u00a0 one\u00a0 area\u00a0 of\u00a0 specialization\u00a0 such\u00a0 as\u00a0 accounting,\u00a0 finance,\u00a0 human resources\u00a0 management\u00a0 and\u00a0 marketing\u00a0 in\u00a0 order\u00a0 to\u00a0 provide\u00a0 graduates\u00a0 with\u00a0 some\u00a0 degree\u00a0 of\u00a0 functional expertise. <\/span><\/p>\n

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The Second Year Programme <\/span><\/b><\/b><\/p>\n

The purpose of the second year programme is to provide basic concepts, tools and understanding of the foundation and core courses. <\/span><\/p>\n

The foundations courses are required to develop understand business practices. <\/span><\/p>\n

The core courses provide essentials of learning which are basic in the broad area of business studies. <\/span><\/p>\n

The second-year programme is therefore organized into the following core and compulsory courses: <\/span><\/p>\n

Second Year (500) <\/span><\/p>\n

MGT 205: Business Communication 100 <\/span><\/p>\n

MGT 209: Macroeconomics for Business 100 <\/span><\/p>\n

MGT 212: Cost and Management Accounting 100 <\/span><\/p>\n

MGT 223: Organizational Behavior & Human Resource Management 100<\/span><\/p>\n

MGT 215: Fundamentals of Financial Management 100<\/span><\/p>\n

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Click on the book cover for <\/span>FREE<\/span> e<\/span>Book<\/span><\/p>\n

\"\"<\/a>

BBS Second year eBooks | Business Communication | Cost and Management Accounting | Organizational Behavior | Human Resource Management | Fundamentals of Financial Management<\/p><\/div>\n

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Cost and Management Accounting (MGT 212)<\/strong><\/span><\/b><\/h2>\n

Full Marks: 100<\/span><\/b><\/p>\n

Lecture Hours: 150<\/span><\/b><\/p>\n

Pass Marks: 35<\/span><\/b><\/p>\n

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Course Objectives <\/span><\/b><\/p>\n

The objectives of the course are to provide the students with in-depth knowledge of cost and management accounting in order to enable them to develop, arrange and classify cost information required for decision making for maximizing the profit and reducing \/ eliminating losses. <\/span><\/p>\n

The course further aims at developing a sound base for higher study in accounting besides in practical knowledge required by the middle level managers to handle cost information independently. <\/span><\/p>\n

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Course Description <\/span><\/b><\/p>\n

This course contains conceptual and theoretical foundation of cost and management accounting; It also comprises classification and segregation of cost, accounting for material and labour, allocation, apportionment and absorption of overhead cost, costing in different situations such as service costing, job and contract costing, process costing etc., <\/span><\/p>\n

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Income statement under variable and absorption costing techniques, standard costing system with material and labour cost variance, flexible budgeting under different levels of activities, overhead cost variance, <\/span><\/p>\n

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Course Details <\/span><\/b><\/p>\n

Unit 1: Conceptual Foundation 15 LHs <\/span><\/b><\/p>\n

Cost accounting and cost accountancy; Meaning, objectives, importance, scope, advantages and limitations of cost and management accounting; <\/span><\/p>\n

Limitations of financial accounting; <\/span><\/p>\n

Similarities and dissimilarities in financial, cost and management accounting Concept, importance; <\/span><\/p>\n

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Classification of cost: basic concept of cost, expense, loss cost center, profit center and cost unit, cost classification: based on function, identification, behavior, controllability, decision making, time of recording, monetary expression, planning and control, period and product cost; <\/span><\/p>\n

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Cost segregation and estimation:<\/span><\/b> concept and methods of cost segregation: (i) Two point method; (ii) Least square method; (iii) Estimation of cost <\/span><\/p>\n

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Unit 2: Accounting for Materials 12 LHs <\/span><\/b><\/p>\n

Materials\/Inventory: <\/span><\/b>Concept, reasons and objectives for holding material\/inventory. <\/span><\/p>\n

Inventory control: <\/span>Meaning, importance and techniques; <\/span><\/p>\n

Economic order quantity: <\/span>concept, techniques, formula, graphic and trial & error approaches-considering discount under certainty condition; <\/span><\/p>\n

Re-order, maximum, minimum, average stock levels, danger level and safety stock; <\/span><\/p>\n

Concept and techniques of perpetual inventory system; <\/span><\/p>\n

Stock control through ABC analysis and just in time inventory:<\/span><\/b> concept, advantages and limitations; Material productivity and Inventory or material turnover.<\/span><\/p>\n

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Unit 3: Accounting for Labour Cost 15 LHs <\/span><\/b><\/p>\n

Labour Cost:<\/span><\/b> Concept and need for control of labour cost; <\/span><\/p>\n

Remuneration without premium plan: Features of good remuneration system, time and piece wage system; <\/span><\/p>\n

Remuneration with premium Plan: Features of premium plan, premium bonus scheme-Halsey and Rowan Plan, Taylor’s Differential Piece Rate, Gant’s Task and Bonus Plan, <\/span><\/p>\n

Group Bonus Scheme: Priestman\u2019s and Scalon\u2019s Plan <\/span><\/p>\n

Labour Turnover:<\/span><\/b> Concept, causes and effects, cost of labour turnover: preventive and replacement cost and calculations, labour turnover ratios. <\/span><\/p>\n

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Unit 4: Accounting for Overhead Cost: 8 LHs <\/span><\/b><\/p>\n

Overhead Cost:<\/span><\/b> Meaning, features, importance and classification; <\/span><\/p>\n

Allocation, apportionment and absorption of overhead: meaning and importance; <\/span><\/p>\n

Apportionment and absorption of overhead cost based on volume, direct labour hours and machine hours; <\/span><\/p>\n

Concept, importance, features, elements of Activity Based Costing, <\/span><\/p>\n

ABC vs Traditional Costing, procedures of absorption of overhead cost under ABC technique;<\/span><\/p>\n

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Unit 5: Costing in Different Situations 42 LHS <\/span><\/b><\/p>\n

Service Costing:<\/span><\/b> Concept, features and scope of service costing; <\/span><\/p>\n

Preparation of cost sheet for transport service for passenger, hospital, hotel and restaurant services; <\/span><\/p>\n

Limitations of service costing;<\/span><\/p>\n

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Job Order Costing:<\/span><\/b> Concept and features; measuring direct material, direct labour and manufacturing overhead cost; <\/span><\/p>\n

Accounting for job order: Preparation of job order cost sheet showing non- manufacturing costs & determination of cost of goods manufactured, cost of goods sold and unit cost. <\/span><\/p>\n

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Batch Costing:<\/span><\/b> Concept and features; <\/span><\/p>\n

Determination of Economic Batch Quantity (EBQ);<\/span><\/p>\n

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Contract Costing:<\/span><\/b> Concept and features; Similarities and dissimilarities in job and contract costing; Contract costing procedures: preparation of contract account in the case of incomplete, near to completion and complete contract, work certified and work uncertified, contractee\u2019s account, work in progress account and balance sheet; Cost plus contract; Escalation and de-escalation clauses. <\/span><\/p>\n

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Process Costing:<\/span><\/b> Concept, features and application; comparison of job costing and process costing; preparation of process accounts with\/without beginning and ending work-inprogress inventory, partial and total transfer of output to next process, accounting for process loss\/gain: normal and abnormal loss, abnormal effective\/gain and computation of unit costs, and treatment of spoilage, wastage, scrap and defective unit; accounting for inter process profit, reserve for unrealized profit. <\/span><\/p>\n

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Joint Product and By Product Costing:<\/span><\/b> Concept, features and objectives of joint and byproduct, difference between joint product, main product and by-product; Apportionment of joint costs under unit of output and revenue basis; Accounting for joint and by-products. <\/span><\/p>\n

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Unit 6: Accounting for Profit Planning 20 LHs <\/span><\/b><\/p>\n

Absorption Costing:<\/span><\/b> Concept, features, importance and preparation of income statement under absorption costing, treatment of normal capacity and fixed manufacturing overhead rate, treatment of opening and closing stock, over and under absorption of fixed manufacturing overhead and adjustment and limitations of absorption costing. <\/span><\/p>\n

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Variable Costing:<\/span><\/b> Concept, features, use and importance preparation of income statement under variable costing, treatment of manufacturing overheads, treatment of opening and closing stock limitations and treatment of other expenses; limitations of variable costing. <\/span><\/p>\n

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Reconciliation of profit or loss between absorption and variable costing techniques showing the causes of differences. <\/span><\/p>\n

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Cost Volume Profit Analysis:<\/span><\/b> Meaning, importance; assumptions and limitations of CVP analysis; <\/span><\/p>\n

Contribution margin and ratio, profit volume ratio; <\/span><\/p>\n

Break even analysis using contribution margin, algebraic and graphic approaches; <\/span><\/p>\n

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Break-even-analysis:<\/span><\/b> under various situations: changes on selling price, fixed cost, variable cost, under step fixed cost, multi-products situations, margin of safety and determination of selling price to realize desired profit ; <\/span><\/p>\n

Advantages and limitations of break-even analysis;<\/span><\/p>\n

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Unit 7: Cost Accounting for Planning and Control 30 LHs <\/span><\/b><\/p>\n

Standard Costing:<\/span><\/b> Concept of standard cost and standard costing, features, application, advantages and limitations; Difference between standard and budget. Variance Analysis; <\/span><\/p>\n

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Material variances:<\/span><\/b> Concept and calculation of cost, price, usage, mix and yield variances; <\/span><\/p>\n

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Labour variances:<\/span><\/b> Concept and calculation of cost, efficiency, rate, mix, idle time and yield variances. <\/span><\/p>\n

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Overhead Cost Variance:<\/span><\/b> Concept and calculation of capacity, efficiency and spending variances. <\/span><\/p>\n

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Budget:<\/span><\/b> concept, features and importance of budget; budget and budgetary control; <\/span><\/p>\n

Types of budget: sales budget, production budget, material budget and merchandize purchase budget, labour budget, manufacturing overhead budget, cost of goods manufactured budget, selling\/distribution & administrative expenses budget and cost of goods sold budget. <\/span><\/p>\n

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Fixed and Flexible Budgeting:<\/span><\/b> Concept and importance of fixed and flexible budgets; Difference between fixed and flexible budgets; Flexible budgeting for overhead cost control on activity levels and budget allowance for actual level attained. <\/span><\/p>\n

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Unit 8: Cost Reduction 8 LHs <\/span><\/b><\/p>\n

Cost Reduction and Cost Control:<\/span><\/b> Cost reduction-pre-requisites, techniques, steps, responsibility and limitations; <\/span><\/p>\n

Value Engineering (analysis): <\/span><\/b>Concept, advantages, tools and techniques for cost reduction; <\/span><\/p>\n

Value Analysis:<\/span><\/b> Concept, objectives, importance, advantages and techniques of value analysis.<\/span><\/p>\n

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*****<\/span><\/p>\n

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Click on the link for <\/span>YouTube<\/span><\/b> videos<\/span><\/p>\n<\/td>\n<\/tr>\n

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Accounting Equation<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/c89jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Journal Entries in Nepali<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/uaakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Journal Entries<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/8aakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Journal Entry and Ledger<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/caakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Ledger<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/haakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Subsidiary Book<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/399jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Cashbook<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/889jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Trial Balance and Adjusted Trial Balance<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/c59jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Bank Reconciliation Statement (BRS)<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/q59jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Depreciation<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/ugakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Click on the link for <\/span>YouTube<\/span> videos chapter wise\u00a0 <\/span><\/p>\n<\/td>\n

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Financial Accounting and Analysis (All videos)<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/jlersz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Accounting Process<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/mlersz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Accounting for Long Lived Assets<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/plersz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n

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Analysis of Financial Statement<\/span><\/p>\n<\/td>\n

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http:\/\/tiny.cc\/slersz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Cost and Management Accountancy (MGT 212)<\/span><\/strong><\/p>\n

Model Question Paper <\/span><\/strong><\/p>\n

Full Marks: 100<\/span><\/strong><\/p>\n

Time: 3 hours<\/span><\/strong><\/p>\n

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Candidates are required to give their answers in their own words as far as practicable.<\/span><\/i><\/p>\n

The figures in the margin indicate full marks.<\/span><\/i><\/p>\n

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Group A<\/span><\/b><\/p>\n

Brief questions answers [10 \u00d7 2 marks = 20 marks]<\/span><\/b><\/p>\n

Attempt all questions<\/span><\/b><\/p>\n

Q: 1. <\/span>State any two objectives of government accounting.<\/span><\/p>\n

Q: 2. <\/span>Mention any two advantages of management accounting.<\/span><\/p>\n

Q: 3. <\/span>Briefly explain the classification of cost on the basis of behaviour.<\/span><\/p>\n

Q: 4. <\/span>Write in short, the unavoidable causes of labour turnover.<\/span><\/p>\n

Q: 5. <\/span>What are the motives of holding inventories?<\/span><\/p>\n

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Q: 6. <\/span>The following extracted information is given:<\/span><\/p>\n

Yearly requirements 25,000 units<\/span><\/p>\n

Purchase price per unit $10<\/span><\/p>\n

Ordering cost $20 per order<\/span><\/p>\n

Inventory carrying cost is 10% of purchase price.<\/span><\/p>\n

Required:\u00a0Total cost at economic order quantity<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Q: 7. <\/span>A company\u2019s cost structure of two different level of out are given as:<\/span><\/p>\n\n\n\n\n
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Total cost ($)<\/span><\/p>\n<\/td>\n

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2,00,000<\/span><\/p>\n<\/td>\n

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3,00,000<\/span><\/p>\n<\/td>\n

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\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

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Output (units)<\/span><\/p>\n<\/td>\n

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50,000<\/span><\/p>\n<\/td>\n

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60,000<\/span><\/p>\n<\/td>\n

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\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Cost into variable and fixed components.<\/span><\/p>\n

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Q: 8. <\/span>The Following extracted data particulars of a worker are provided:<\/span><\/p>\n

Standard time 20 hours<\/span><\/p>\n

Actual time taken 15 hours<\/span><\/p>\n

Hourly wage rate $30<\/span><\/p>\n

Required:\u00a0Total earning of worker under Halsey Premium Plan.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Q: 9. <\/span>The following extracted information are provided to you:<\/span><\/p>\n

Consumption per day\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 400 \u2013 600 units<\/span><\/p>\n

Delivery Period\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3 \u2013 5 days<\/span><\/p>\n

Re-order level\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4500 units<\/span><\/p>\n

Required:\u00a0Minimum stock level<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Q: 10. <\/span>The following extracted information is provided:<\/span><\/p>\n

Cost Raw material $18000<\/span><\/p>\n

Direct labour cost for 900 hours @ $10 per hour<\/span><\/p>\n

Overhead for 4000 hours @ $20,000<\/span><\/p>\n

Required: Job cost sheet.<\/span><\/p>\n

\u00a0<\/span><\/b><\/p>\n

Group B<\/span><\/b><\/p>\n

Short questions answer [5 \u00d7 10 marks = 50 marks]<\/span><\/b><\/p>\n

Attempt five questions<\/span><\/b><\/p>\n

Q: 11. <\/span>Pokhara Factory has three production departments and one service department. Other details are as follows:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Particulars <\/span><\/p>\n<\/td>\n

\n

Production Department<\/span><\/p>\n<\/td>\n

\n

Service Department <\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

A<\/span><\/p>\n<\/td>\n

\n

B<\/span><\/p>\n<\/td>\n

\n

C<\/span><\/p>\n<\/td>\n

\n

S<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Direct materials ($)<\/span><\/p>\n<\/td>\n

\n

20,000<\/span><\/p>\n<\/td>\n

\n

30,000<\/span><\/p>\n<\/td>\n

\n

20,000<\/span><\/p>\n<\/td>\n

\n

5,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Direct wages ($)<\/span><\/p>\n<\/td>\n

\n

25,000<\/span><\/p>\n<\/td>\n

\n

20,000<\/span><\/p>\n<\/td>\n

\n

15,000<\/span><\/p>\n<\/td>\n

\n

5,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Labour hours <\/span><\/p>\n<\/td>\n

\n

3,000<\/span><\/p>\n<\/td>\n

\n

2,000<\/span><\/p>\n<\/td>\n

\n

2,000<\/span><\/p>\n<\/td>\n

\n

–<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Area in squire feet<\/span><\/p>\n<\/td>\n

\n

400<\/span><\/p>\n<\/td>\n

\n

300<\/span><\/p>\n<\/td>\n

\n

200<\/span><\/p>\n<\/td>\n

\n

100<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Light points <\/span><\/p>\n<\/td>\n

\n

5<\/span><\/p>\n<\/td>\n

\n

3<\/span><\/p>\n<\/td>\n

\n

2<\/span><\/p>\n<\/td>\n

\n

2<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Horse power<\/span><\/p>\n<\/td>\n

\n

6<\/span><\/p>\n<\/td>\n

\n

3<\/span><\/p>\n<\/td>\n

\n

2<\/span><\/p>\n<\/td>\n

\n

1<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Fixed assets value (in Lack (Million $)<\/span><\/p>\n<\/td>\n

\n

10<\/span><\/p>\n<\/td>\n

\n

5<\/span><\/p>\n<\/td>\n

\n

3<\/span><\/p>\n<\/td>\n

\n

2<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Service rendered by service department\u00a0 <\/span><\/p>\n<\/td>\n

\n

50%<\/span><\/p>\n<\/td>\n

\n

30%<\/span><\/p>\n<\/td>\n

\n

20%<\/span><\/p>\n<\/td>\n

\n

–<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/span><\/p>\n

Other information:<\/span><\/p>\n\n\n\n\n\n
\n

Rent <\/span><\/p>\n<\/td>\n

\n

$10,000<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Depreciation <\/span><\/p>\n<\/td>\n

\n

$20,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Electricity light <\/span><\/p>\n<\/td>\n

\n

$12,000<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

General overhead <\/span><\/p>\n<\/td>\n

\n

$13,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Power <\/span><\/p>\n<\/td>\n

\n

$20,000<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Required: (i) Total overhead to each department; (ii) Labour hour rate of production department [8+2 = 10]<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Q: 12. <\/span>A company provided the following particulars:<\/span><\/p>\n

Selling price per unit $40<\/span><\/p>\n

Variable cost per unit $24<\/span><\/p>\n

Fixed cost for the year $240,000<\/span><\/p>\n

Corporate tax rate is 25%<\/span><\/p>\n

Required: (i) Profit Volume Ratio (PVR); (ii) BEP in amount; (iii) BEP in amount if variable cost per unit decreases to $20; <\/span><\/p>\n

(iv) Sales amount to earn after tax profit of $40,000.<\/span><\/p>\n

(v) If the company desires to sell 10,000 units; what would be the selling price per unit to earn a profit of $20,000. [2\u00d75]<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Q: 13. <\/span>The following extracted details of ABC Manufacturing Company are given:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Units <\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Amount ($)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Normal capacity units<\/span><\/p>\n<\/td>\n

\n

10,000<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Selling price per unit<\/span><\/p>\n<\/td>\n

\n

$60<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Production units <\/span><\/p>\n<\/td>\n

\n

12,000<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Direct materials per unit<\/span><\/p>\n<\/td>\n

\n

$20<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Sales units <\/span><\/p>\n<\/td>\n

\n

14,000<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Direct labour per unit <\/span><\/p>\n<\/td>\n

\n

$10<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Closing stock units <\/span><\/p>\n<\/td>\n

\n

2,000<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Variable manufacturing overhead per unit<\/span><\/p>\n<\/td>\n

\n

$5<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Fixed manufacturing overhead <\/span><\/p>\n<\/td>\n

\n

$100,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Variable office and selling overhead per unit<\/span><\/p>\n<\/td>\n

\n

$3<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Fixed office and selling overhead<\/span><\/p>\n<\/td>\n

\n

$150,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Required: (i) Income Statement under Absorption costing; (ii) Reconciliation statement [7+3]<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Q: 14a. <\/span>AM Manufacturing House provided following details:<\/span><\/p>\n\n\n\n\n
\n

Months <\/span><\/p>\n<\/td>\n

\n

Jan<\/span><\/p>\n<\/td>\n

\n

Feb<\/span><\/p>\n<\/td>\n

\n

Mar<\/span><\/p>\n<\/td>\n

\n

Apr<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Sales amount\u00a0 ($)<\/span><\/p>\n<\/td>\n

\n

500,000<\/span><\/p>\n<\/td>\n

\n

600,000<\/span><\/p>\n<\/td>\n

\n

400,000<\/span><\/p>\n<\/td>\n

\n

500,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Selling price per unit is $100. The company has a policy to keep ending inventory of finished goods is 50% of next month sales need. The beginning inventory of finished goods for January is 2500 units. Each unit of finished goods will require three units of raw material.<\/span><\/p>\n

Required:\u00a0(i) Production budget for three months ending March;<\/span><\/p>\n

(ii) \u00a0Raw material consumption budget for three months ending March. [4+1]<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Q: 14b. <\/span>Enumerate briefly the perpetual inventory system for inventory control. [15]<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Q: 15a. <\/span>ABC Transport Company provides the following particulars:<\/span><\/p>\n

Cost of vehicle $40,00,000<\/span><\/p>\n

Estimated life 10 years<\/span><\/p>\n

Estimated scrap value at the end of 10 years life is $500,000.<\/span><\/p>\n

The vehicle covers 20,000 km in a year.<\/span><\/p>\n

Other annual expenses are:<\/span><\/p>\n\n\n\n\n\n\n
\n

Garage rent<\/span><\/p>\n<\/td>\n

\n

$15,000<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Other expenses<\/span><\/p>\n<\/td>\n

\n

$20,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Road License<\/span><\/p>\n<\/td>\n

\n

$20,000<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Fuel consumption<\/span><\/p>\n<\/td>\n

\n

10 km per liter<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Insurance charges<\/span><\/p>\n<\/td>\n

\n

$25,000<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Cost of fuel per liter<\/span><\/p>\n<\/td>\n

\n

$90<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Driver\u2019s salary<\/span><\/p>\n<\/td>\n

\n

$60,000<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Required: Operating cost sheet showing standing and running charges [5]<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Q: 15b. <\/span>Write briefly the system of wage payment under Taylor\u2019s differential piece rat and Grant Task and bonus scheme. [5]<\/span><\/p>\n

Q: 16. <\/span>Define standard costing and differentiate it from budgetary control. [10]<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Group C<\/span><\/b><\/p>\n

Long questions answer [2 \u00d7 15 marks = 30 marks]<\/span><\/b><\/p>\n

Attempt any two questions.<\/span><\/b><\/p>\n

Q: 17. <\/span>A company provided the following particulars for the period ended:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
\n

Items <\/span><\/p>\n<\/td>\n

\n

Cost drivers<\/span><\/p>\n<\/td>\n

\n

Products<\/span><\/p>\n<\/td>\n

\n

Overhead ($)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

P<\/span><\/p>\n<\/td>\n

\n

Q<\/span><\/p>\n<\/td>\n

\n

R<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Production units <\/span><\/p>\n<\/td>\n

\n

–<\/span><\/p>\n<\/td>\n

\n

5,000<\/span><\/p>\n<\/td>\n

\n

4,000<\/span><\/p>\n<\/td>\n

\n

3,000<\/span><\/p>\n<\/td>\n

\n

–<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Materials purchase cost <\/span><\/p>\n<\/td>\n

\n

Order executed <\/span><\/p>\n<\/td>\n

\n

7<\/span><\/p>\n<\/td>\n

\n

8<\/span><\/p>\n<\/td>\n

\n

3<\/span><\/p>\n<\/td>\n

\n

36,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Set up cost<\/span><\/p>\n<\/td>\n

\n

Production runs <\/span><\/p>\n<\/td>\n

\n

10<\/span><\/p>\n<\/td>\n

\n

9<\/span><\/p>\n<\/td>\n

\n

6<\/span><\/p>\n<\/td>\n

\n

50,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Maintenance cost <\/span><\/p>\n<\/td>\n

\n

Machine hours <\/span><\/p>\n<\/td>\n

\n

7,000<\/span><\/p>\n<\/td>\n

\n

4,000<\/span><\/p>\n<\/td>\n

\n

2,000<\/span><\/p>\n<\/td>\n

\n

26,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Materials handling cost <\/span><\/p>\n<\/td>\n

\n

Quantity of\u00a0 materials <\/span><\/p>\n<\/td>\n

\n

4,000<\/span><\/p>\n<\/td>\n

\n

3,000<\/span><\/p>\n<\/td>\n

\n

2,000<\/span><\/p>\n<\/td>\n

\n

18,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Direct material cost per unit\u00a0 ($)<\/span><\/p>\n<\/td>\n

\n

–<\/span><\/p>\n<\/td>\n

\n

$4<\/span><\/p>\n<\/td>\n

\n

$5<\/span><\/p>\n<\/td>\n

\n

$6<\/span><\/p>\n<\/td>\n

\n

–<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Direct labour per unit ($)<\/span><\/p>\n<\/td>\n

\n

–<\/span><\/p>\n<\/td>\n

\n

$6<\/span><\/p>\n<\/td>\n

\n

$5<\/span><\/p>\n<\/td>\n

\n

$4<\/span><\/p>\n<\/td>\n

\n

–<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Required:\u00a0Total cost and cost per unit under (i) Traditional costing system based on machine hours<\/span><\/p>\n

(ii) Activity based costing (ABC) [6+9 = 15]<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Q: 18. <\/span>A product passes through three processes X, Y and Z. <\/span><\/p>\n

The output of process X becomes input for process Y and the output of process Y becomes input for process Z. <\/span><\/p>\n

The entire outputs of process Z were transferred to ware house as finished product. <\/span><\/p>\n

The other details of processes during the period are given as under:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
\n

Particulars <\/span><\/p>\n<\/td>\n

\n

Process X<\/span><\/p>\n<\/td>\n

\n

Process Y<\/span><\/p>\n<\/td>\n

\n

Process Z<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Raw material input 2,000 units<\/span><\/p>\n<\/td>\n

\n

50,000<\/span><\/p>\n<\/td>\n

\n

–<\/span><\/p>\n<\/td>\n

\n

–<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Other material ($)<\/span><\/p>\n<\/td>\n

\n

20,000<\/span><\/p>\n<\/td>\n

\n

30,000<\/span><\/p>\n<\/td>\n

\n

34,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Direct labour ($)<\/span><\/p>\n<\/td>\n

\n

34,000<\/span><\/p>\n<\/td>\n

\n

42,000<\/span><\/p>\n<\/td>\n

\n

50,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Production overhead ($)<\/span><\/p>\n<\/td>\n

\n

15,000<\/span><\/p>\n<\/td>\n

\n

20,000<\/span><\/p>\n<\/td>\n

\n

25,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Normal wastage<\/span><\/p>\n<\/td>\n

\n

10%<\/span><\/p>\n<\/td>\n

\n

5%<\/span><\/p>\n<\/td>\n

\n

10%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Wastage realized per unit ($)<\/span><\/p>\n<\/td>\n

\n

10<\/span><\/p>\n<\/td>\n

\n

20<\/span><\/p>\n<\/td>\n

\n

15<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Actual output units<\/span><\/p>\n<\/td>\n

\n

1,820<\/span><\/p>\n<\/td>\n

\n

1,700<\/span><\/p>\n<\/td>\n

\n

1,600<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Required: (a) Process accounts; (b) Abnormal loss account; (c) Abnormal gain account [11+2+2 = 15]<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Q: 19a. <\/span>Define cost reduction and explain the areas of cost reduction.<\/span><\/p>\n

Q: 19b. <\/span>Describe the methods of apportioning joint cost of the product with suitable examples. [9+6]<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

***** #EP<\/span>Online<\/span>Study *****<\/span><\/p>\n

Thank you for investing your time.<\/span><\/i><\/p>\n

Please comment on the article.<\/span><\/i><\/p>\n

You can help us by sharing this post on your social media platform.<\/span><\/i><\/p>\n

\u00a0<\/span><\/p>\n

Jay G<\/span>o<\/span>o<\/span>g<\/span>l<\/span>e<\/span>, Jay YouTube<\/span>, Jay Social Media<\/span><\/span><\/p>\n

\u091c\u092f<\/span> \u0917\u0942<\/span>\u0917<\/span>\u0932<\/span>.<\/span> \u091c\u092f<\/span> \u092f\u0941\u091f\u094d\u092f\u0941\u092c<\/span>,<\/span> \u091c\u092f<\/span> \u0938\u094b\u0936\u0932<\/span> \u092e\u0940\u0921\u093f\u092f\u093e <\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0 \u00a0 \u00a0 Bachelor of Business Studies (BBS) Programme objective The\u00a0 objective\u00a0 of\u00a0 the\u00a0 BBS\u00a0 programme\u00a0 at\u00a0 the\u00a0 FOM\u00a0 is\u00a0 to\u00a0 develop\u00a0 students\u00a0 into\u00a0 competent\u00a0 managers\u00a0 for\u00a0 any sector\u00a0 of\u00a0 organized\u00a0 activity.\u00a0 The\u00a0 programme\u00a0 is\u00a0 based\u00a0 on\u00a0 the\u00a0 principle\u00a0 that\u00a0 graduates\u00a0 will\u00a0 spend\u00a0 a\u00a0 major portion of their life in a constantly changing environment. Therefore, […]<\/p>\n","protected":false},"author":19997,"featured_media":5454,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2578,11],"tags":[2593,591,2592,2002],"writers":[2584],"yoast_head":"\nCost and Management Accounting | Syllabus and Model Question<\/title>\n<meta name=\"description\" content=\"Accounting for Materials , Labour and Overhead, \u00a0Service Costing, Job Order Costing, Batch Costing, Contract Costing, Process Costing etc.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/eponlinestudy.com\/cost-and-management-accounting-syllabus-and-model-question-bbs-second-year\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cost and Management Accounting | Syllabus and Model 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