Cost and Management Accounting

Write any two objectives of cost accounting.

Define semi-variable cost with suitable examples.

Write in brief about ABC analysis in stock control system.

Point out the causes of labour turnover.

Write any two differences between allocation and apportionment of overhead.

Following information are given:

• Carrying cost per unit: Rs. 0.5
• Ordering cost per order: Rs. 40
• EOQ: 1,000 units

Required: Annual requirement.

A Company's cost structure of two different level of output is given below:

• Total cost (Rs): 40,000 (at 2,000 units) and 60,000 (at 4,000 units)
• Output (units): 2,000 and 4,000

Required: Total cost for 3,000 units.

A manufacturing company provide you the following information:

• Standard time allowed: 150 hours
• Time Saved by a worker: 20 hours
• Wage rate per hour: Rs. 30

Required: Total earning of a worker under Rowan Premium Plan.

Following information are supplied to you:

• Consumption per day: 30,000 to 50,000 units
• Re-order period: 3 to 5 days
• Maximum stock level: 3,00,000 units

Required: Re-order quantity

Following particulars are provided:

• Cost of selection: Rs. 25,000
• Training cost: Rs. 20,000
• Cost of welfare services: Rs. 22,500
• Loss due to inefficiency of new workers: Rs. 20,000
• Average no. of workers: 100
• No. of workers replaced: 200

Required: Replacement cost per replacement