Cost and Management Accounting-1st-2016-NMIMS

Cost and Management Accounting-1st-2016-NMIMS
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Q1. Explain the concept of Responsibility Accounting with its Centre. (10 Marks)
Q2. A factory manufacturing sewing machines has the capacity to produce 500 machines per annum. The marginal (variable cost) of each machine is Rs. 200 and each machine is sold for Rs. 250. Fixed overheads are Rs. 12,000 per annum. Calculate the break even points for output and sales and show what profit will result if output is 90% of capacity. (10 Marks)
Q3. Explain the following:
a. Differentiate between: (5 Marks)
i. Opportunity Cost & Actual Costs
ii. Historical Cost and Replacement Cost
b. Allocation of correct factory overheads is important for each of the functions / departments. List down the various methods which are used for codification of overheads Costs. (5 Marks)
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