2010
(August)
Paper:
103
Full
Marks: 80
Time:
3 hours
1. (a)
What is activity-based costing? Discuss how it can be implemented in any
industry with which you are familiar.
6+10=16
Or
(b) What do you understand
by cost reduction? Indicate the areas of cost reduction campaign. 7+9=16
2.
(a) Mr. Dutta has started a transport business
with a fleet of 10 taxis. The various expenses incurred by him are given
below: 16
(i)
Cost of each taxi Rs. 75000
(ii)
Salary of office staff Rs. 1500 p.m.
(iii)
Salary of garage staff Rs. 2000 p.m.
(iv) Rent
of garage Rs. 1000 p.m.
(v)
Driver’s salary (per taxi) Rs. 400 p.m.
(vi) Road
tax and repairs (per taxi) Rs. 2160 p.a.
(vii) Insurance
premium @ 4% p.a. on the
cost of vehicle.
The life of a taxi is
300000 km and at the end of which it is estimated to be sold at Rs. 15000. A
taxi runs on an average 4000 km per month of which 20% it runs empty. Petrol
consumption is 9km per litre of petrol costing Rs. 6.30 per litre. Oil and
other sundry expenses amount to Rs. 10 per 100 km.
Calculate the effective
cost of running taxi per km. If the hire charge is Rs. 1.80 per km, find out
the profit Mr. Dutta may expect to make in the first year of operation.
Or
(b) From the following
information, find out the profit made by each product, apportioning joint costs
on the sales – value basis 16
|
Joint
Cost
|
Amount
(Rs.)
|
||||
|
Direct Materials
Power
Petrol, Oil,
Lubricants
Labour
Other charges
|
126000
25000
5000
7500
4100
|
||||
|
Particulars
|
Product
X
|
Product
Y
|
|||
|
Selling Costs
Sales
|
20000
152000
|
80000
168000
|
|||
3. (a)
From the following Balance sheet of A. Ltd., Prepare a position statement as on
that date and comment on the financial position of the company: 16
Balance Sheet of A Ltd. As
on 31st December, 2010
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Share Capital
Authorised:
Issued and
Subscribed:
15000 equity
shares of Rs.10/- each called up
Reserves and
Surplus:
Capital reserve
General Reserve
Secured and
Unsecured Loans
Current
Liabilities
|
150000
40000
30000
80000
45000
|
Fixed Assets:
Plant and
Machinery
Other Fixed
Assets
Investments (Long
Term)
Current assets
|
105000
85000
25000
130000
|
|
Total
|
345000
|
|
345000
|
Or
(b)Explain trend
percentages as a tool of analysis highlighting on methods of calculation,
advantages, limitations and precautions to be taken. 5+5+6=16
4. (a)
The profit of a company is Rs. 50,000 after charging interest of Rs. 6000 on
debentures and providing Rs. 24000 for taxes, the assets of the company consists
of fixed assets Rs. 200000, current assets Rs. 600000 and preliminary expenses
Rs. 30000, Discount on issue of debenture is Rs. 10000. Compute the return on
capital employed. 16
Or
(b) What is ratio analysis? State the objects
of Balance sheet ratios. 5+11=16
5. (a)
In calculation of figures for working capital projection, what are the time lag
for payments to creditors for goods and time lag in payment of expenses and how
they are calculated? 8+8=16
Or
(b) Show the
classification of working capital on different basis, depending on the purpose of
analysis. 16