Cost and Management Accounting

State any two importance of cost accounting.

Define direct cost with suitable examples?

Write any two motives of holding inventory.

Write any two causes of labour turnover.

What do you mean by service costing?

Following information is given:

• Annual requirement: 3600 units @ Rs. 20 each
• Carrying cost: 10% of inventory value
• Cost of placing an order: Rs. 400 Required: Number of order of EOQ.

Difference in total cost is Rs. 100,000 between 40,000 units and 20,000 units. The total fixed cost is Rs. 200,000. Required: Total cost for 30,000 units.

The following data are given to you:

• Standard output = 1,000 units
• Actual output = 1,200 units
• Normal piece rate = Rs. 20 Required: Total wages under Taylor's differential piece rate system.

Following information are supplied to you:

• Consumption per day: 800 - 1200 units
• Re-order period: 3 - 5 days
• Maximum stock level: 6000 units Required: Re-order quantity.

Following particular are provided:

• Cost of selection: Rs. 25,000
• Training cost: Rs. 20,000
• Cost of welfare services: Rs. 22,000
• Pension scheme: Rs. 15,000
• Loss due to inefficiency of new workers: Rs. 20,000
• Average no. of workers: 1000
• No. of workers replaced: 200 Required: Preventive cost per employee.