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    Cost Control Techniques PDF

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    HosamMohamed
    This document appears to be an exam for a cost control techniques course, as it covers various cost reduction and analysis topics. It includes: 1) Five questions in Section A asking students to explain concepts like value analysis, production vs productivity, performance budgeting, standard costing limitations, and transfer pricing methods. 2) Three questions in Section B asking students to discuss differences between cost control and reduction, budgetary control system steps, and calculating labor variances from standard and actual data. 3) Additional questions calculating P/V ratio, break even point, margin of safety, and effects of price changes for a company with given sales, costs and prices. The exam tests students' understanding of key

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    © All Rights Reserved
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    Cost Control Techniques PDF

    Uploaded by

    HosamMohamed
    298 views3 pages
    This document appears to be an exam for a cost control techniques course, as it covers various cost reduction and analysis topics. It includes: 1) Five questions in Section A asking students to explain concepts like value analysis, production vs productivity, performance budgeting, standard costing limitations, and transfer pricing methods. 2) Three questions in Section B asking students to discuss differences between cost control and reduction, budgetary control system steps, and calculating labor variances from standard and actual data. 3) Additional questions calculating P/V ratio, break even point, margin of safety, and effects of price changes for a company with given sales, costs and prices. The exam tests students' understanding of key

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    (3) COST CONTROL TECHNIQUES.pdf

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    This document appears to be an exam for a cost control techniques course, as it covers various cost reduction and analysis topics. It includes: 1) Five questions in Section A asking students to explain concepts like value analysis, production vs productivity, performance budgeting, standard costing limitations, and transfer pricing methods. 2) Three questions in Section B asking students to discuss differences between cost control and reduction, budgetary control system steps, and calculating labor variances from standard and actual data. 3) Additional questions calculating P/V ratio, break even point, margin of safety, and effects of price changes for a company with given sales, costs and prices. The exam tests students' understanding of key

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    298 views3 pages

    Cost Control Techniques PDF

    Uploaded by

    HosamMohamed
    This document appears to be an exam for a cost control techniques course, as it covers various cost reduction and analysis topics. It includes: 1) Five questions in Section A asking students to explain concepts like value analysis, production vs productivity, performance budgeting, standard costing limitations, and transfer pricing methods. 2) Three questions in Section B asking students to discuss differences between cost control and reduction, budgetary control system steps, and calculating labor variances from standard and actual data. 3) Additional questions calculating P/V ratio, break even point, margin of safety, and effects of price changes for a company with given sales, costs and prices. The exam tests students' understanding of key

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    © All Rights Reserved
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    of 3

    Register Number :

    Name of the Candidate :

    5 6 2 3
    M.Com. (Accounting and Finance)
    DEGREE EXAMINATION, 2009
    ( SECOND YEAR )
    ( PAPER - X )

    650. COST CONTROL TECHNIQUES


    December ]

    [ Time : 3 Hours
    Maximum : 100 Marks
    SECTION - A

    (5 8 = 40)

    Answer any FIVE questions.


    All questions carry equal marks.
    1. Explain the concept of value analysis as a
    technique of cost reduction.
    2. Differentiate between production and
    productivity. Which would you prefer to
    improve in your organisation and why ?
    3. What do you understand by Performance
    Budgeting ? Explain its main features.
    Turn over

    2
    4. Discuss the limitations of standard costing.
    5. Discuss briefly three bases normally followed
    in pricing inter - department transfers of
    product.
    6. From the following information, calculate
    material mix variance.

    5
    12. The following data are available from the
    records of a company :
    Rs....

    Variable Cost

    Sales

    Fixed cost
    Materials

    Standard
    Quantity
    (Units)

    60

    40

    60,000
    30,000
    15,000

    Actual

    Price
    Quantity
    (per unit ) (Units)
    10
    5

    Price

    ( per unit )

    50

    12

    50

    (a) Calculate the p/v ratio ; Break - even point


    and margin of safety at this level.
    (b) Calculate the effect of 10 % increase in
    sale price.
    (c) Calculate the effect of 10 % decrease in

    7. From the following particulars, calculate :


    (i)

    Break - even point in terms of sales value


    and in units.

    (ii) Number of units that must be sold to


    earn a profit of Rs. 90,000

    sale price.
    13. What do you mean by transfer pricing ? Briefly
    describe the methods that are used by
    companies to mitigate problem of transfer
    pricing.

    Rs....

    Fixed Selling Overheads Cost

    Fixed Factory Overheads Cost

    60,000
    12,000

    4
    SECTION - B

    Answer any THREE questions.


    All questions carry equal marks.
    9. What is the difference between cost control
    and cost reduction ? Enumerate some of the
    possibilities in reducing the cost of a product
    and outline a programme for cost reduction.
    10. Describe the essential steps of a Budgetary
    Control system.
    11. The information regarding the composition and
    the weekly wage rates of labour force engaged
    in a job scheduled to be completed in 30
    weeks are as follows :
    Standard
    Category of
    workers

    Rs....

    (3 20 = 60)
    Variable Manufacturing
    cost per unit

    12

    Variable selling cost per unit

    Selling price per unit

    24

    8. A manufacturing company finds that while the


    cost of making a component No. 051 in its
    own workshop is Rs. 8 each, the same is
    available in market at Rs. 650 with an
    assurance of continuous supply. Give your
    suggestion whether to make or buy this
    component. Give also, your views in case the
    supplier reduces the price from Rs. 650 to
    Rs. 550. The cost data is as follows :

    Actual

    No. of Weekly wage No. of Weekly wage


    rate per
    rate per
    workers
    workers
    worker Rs.
    worker Rs.

    Skilled

    75

    60

    70

    70

    Semi - skilled

    45

    40

    30

    50

    Unskilled

    60

    30

    80

    20

    Rs.
    Materials
    Direct labour
    Other variable expenses
    Depreciation and
    other fixed expenses

    300
    200
    100

    Total

    800

    200

    The work was completed in 32 weeks.


    Calculate various labour variances.

    Turn over

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