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


Comments

Post a Comment

Popular posts from this blog

Work certified and uncertified

Meaning of Work Certified  When contractor takes the contract to complete any construction work, it may complete in 4 or 5 years. but contractor has to pay different expenses for material, labor and others. So, it is very necessary to pay him some money of contract. This money is given on the basis of work done. So, any part of construction which is completed by contractor will be work certified if it is certified by an authority. Authority may be independent engineer or architect who can estimated the work. He will issue the certificate of work done after certifying the work of construction. On this work certified, contractor has right to get money of contract. Meaning of Work Uncertified Work uncertified means work done but not certified by authority. So, contractee will cut some money on the basis of work uncertified and will keep in his pocket. This will be retention money. Accounting Treatment of Work Certified and Work Uncertified  (I) Work  certified...
Read more

factors influencing choice of advertising agency

The Advertiser looks for an advertising agency whose services and expertise meets his requirements. Following factors should be considered while selecting an advertising agency:- Services offered by Ad-agency  - There are different agencies provides different services, some provides all the services, some provide selected services, some provides only media services. It depends on the requirement of advertiser whether he need a fulls service agency, creative boutique, media buying service agency, or a  sweet shop . Experience of Agency  - An experienced agency performs better then a new agency  because it is familiar with different components of marketing environment like- competitors' policies, taste of consumer, income of consumer, consumer responses, fashions and trends, reputation of different media etc. Location  - A major factor to be considered while selecting ad-agency is location of office of agency. A considerable amou...
Read more

Environment of International Marketing

Image
Apple is so successful because of their effective marketing efforts. They are good in identifying relevant environmental factors and trends which helps in taking advantage of opportunities and minimising threats.  New technological developments, global economic conditions, worldwide population changes, increased competition, legislative requirements, and political events are some of the factors affecting current and future marketing activities of the organisations around the world. Combination of such factors makes the International Marketing Environment. The long term performance of any organisation depends on its ability to identify and respond effectively to the key changes in its marketing environment.  Meaning of International Marketing Environment  International Marketing Environment is the combination of various factors external to an organisation that can affect the international marketing decisions of the organisation in international market. These fac...
Read more