COST ACCOUNTING THEORY QUESTIONS




Difference between periodic and perpetual inventory systems. What are the advantages and drawbacks of each ?
What do you understand by escalation clause  and cost + contract in cost accounting?
What are the advantages of introducing costing system in an industrial organisation?

What is idle time? Do a 360 degree appraisal of idle time. How is it treated in cost accounting?

What are the reasons for disagreements of profits as per FA and CA? Explain
What are the causes of under/over absorption of  WOHs? How are they treated in CA?
Differentiate between controllable and non  controllable costs
What is the role of a cost accountant in a manufacturing organisation ?
Explain normal and abnormal process loss. How are they treated in Cost accounting?
What is labour turnover? What are its causes ?
Enumerate the different methods of absorption of WOH
Why is reconciliation of profits required between cost and FA ?
Limitation of FA has given rise to CA. Do you agree? Why/Why not?

I have come across this very interesting question to check your knowledge on pricing of material

March 2020                                  Receipts                                                  Issues
                                               Qty       Value ( Rs)                                   Qty       Value ( Rs)


5                                           500          1600                                            -                -

8                                            200         1200                                             -                -

12                                            -                -                                             350            1400


17                                         250           1000                                           -                    -

20                                         200             2400                                          -                   -

25                                                                                                             500            3000

26                                         500            4000

30                                                                                                                 400          2900

Find the method and complete the stores ledger


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