Consolidated Papers of Cost Accounting

Q1. Answer the Following Short Questions?

1. Define Cost?
2. Differentiate between cost and Expense?
3. Enlist any two differences between Product Cost and Period Cost?
4. What is Purpose of Three concept?
5. Why absorption costing is also termed as full costing?
6. Enlist any two characteristics of a single Process in Process costing?
7. What is the difference between waste and scrap?
8. Enlist various methods to allocate joint cost?
9. Define cost driver?
10. Write down the %profit formula in BEP and CVP analysis?
11. How you differentiate common cost with joint cost?
12. Distinction between opportunity cost and Sunk cost?
13. Define indirect cost?
14. Define joint cost and standard cost?
15. Define normal standards?
16. Exemplify a bottleneck in the process and how you resolve it?
17. Enlist three differences between Financial and Management Accounting?
18. Write down the formula of Margin of safety?
19. Draw the Decision tree of relevant cost for Material?
20. How labor time ticket work?
21. How you differentiate between gross profit and gross margin?
22. How you differentiate the purpose of Budgeted Fixed FOH and Applied Fixed FOH?
23. What is Reciprocal Servicing?
24. Write four lines about what you expect from an accountant in the actual work setting, who has completed CIMA Diploma in Management Accounting?
25. Give example of each basic, ideal and normal standard?
26. Define standard?
27. Any two difference between using FIFO and Average methods for process costing
28. Any two unique characteristic of using marginal costing technique?
29. Write down the profit% formula in CVP analysis
30. Write down the formula for Margin of Safety in CVP analysis
31. Define standard costing?
32. What do you know about relevant costs?
33. Draw the flow chart/decision tree of how relevant cost of labor is judged?
34. Write any two definitions of the both “opportunity cost” and “sunk cost”. Also provide example of each
35. What is the criterion to judge limiting factor under single constraint?
36. What is the difference between actual, normal and allowed capacity?
37. Draw a standard cost card of material though an example of you own choice?
38. Enlist the seven requirements to calculate the variances for FOH?
39. Enlist any 10 types of major decision in the business as a Management accountant you may face?

Define the Following terms with example of each

• Opportunity cost
• Differential cost
• Common cost
• Cost driver
• Cost vs. expense
• Differential cost
• Marginal cost
• Sunk cost
• Labor time ticket
• Process
• Indirect cost

MCQs /OTQs (Marks 1+1+1+1+1+1+1+1+4+8=20)

1. Which one of the following is indivisible cost?

(a) Joint Cost (b) Incremental cost (c) differential cost (d) historical costs

2. Which one of the following is not relevant to decision making? You may encircle more than one answer?

(a) Historical cost (b) opportunity costs (c) direct labor cost (d) Sunk cost (e) Carrying value/book value (f) Net Realizable value/market value of non-current assets