Cost & Management Accounting SEM 2 DEC 2026

Description

Cost & Management Accounting

Dec 2026 Examination

 

Q1 A manufacturing company provides the following information for the production of 10,000 units during the year:

Particulars	Amount (Rs.)
Opening Stock of Raw Materials	30,000
Purchases of Raw Materials	2,40,000
Carriage Inwards	10,000
Closing Stock of Raw Materials	40,000
Direct Wages	1,20,000
Direct Expenses	20,000
Factory Overheads	1,00,000
Opening Work-in-Progress	30,000
Closing Work-in-Progress	20,000
Office & Administrative Overheads	60,000
Opening Finished Goods	50,000
Closing Finished Goods	30,000
Selling & Distribution Overheads	60,000

The company follows a cost-sheet approach for determining product cost and pricing. Prepare a Cost Sheet showing Prime Cost, Factory/Works Cost, Cost of Production, Cost of Goods Sold and Cost of Sales. Calculate the cost per unit and determine the selling price per unit if the company wants to earn a profit of 20% on cost. (10 Marks)

Ans 1.

Introduction

Any manufacturing firm needs an effective method to figure out what a particular product will cost to create and to sell so that they can price it correctly and earn a fair profits. Cost sheets are comprehensive document that categorizes and summarizes the overall costs of a product in distinct categories for the specified period. They are prepared frequently and usually with each order or batch, as well as for the accounting period which serves as an account of costs in the past as well as an instrument to determine future pricing. When a bakery prepares a costs sheet for one thousand loaves will quickly discover whether labour costs, food or oven overheads make up the majority amount of costs, and adjust pricing accordingly. It acts as an intermediary between accounting for financial data and managerial decisions of the appropriate price.

Concept and

 

Fully solved you can download

ASSIGNMENTS Dec 2026

• Fully Solved, High Quality
• Lowest Price Guarantee: Just ₹199 per Assignment!
• 100% Original & Manually Solved (No AI/ChatGPT!)

Hurry! Last Date: 29 Oct 2026

• Order Now: com/online-buy-2/

Quick Response Guaranteed!

For Unique Assignment please contact on

• WhatsApp: 8791490301
• [email protected]
• aapkieducation.com

 

Q2 (A) A manufacturing company is facing rising costs, inefficient resource utilisation and increasing competition. The Managing Director believes that financial accounting information alone is sufficient to address these issues. The newly appointed Management Accountant disagrees and recommends using management accounting information for managerial decisions. Evaluate the Management Accountant’s recommendation by explaining how management accounting information can support planning, resource allocation, monitoring and control, and operational decision-making in this situation. (5 Marks)

Ans 2(A).

Introduction

The managing director believes that financial accounting alone can solve the problems of rising costs, poor resource use as well as competition. Nevertheless, the financial accounting system only records what previously occurred. It is the Management Accountant is right to advise management accounting as it focuses on the future and helps the actual process of making decisions rather than simply recording the

 

Q2 (B) A diversified manufacturing and engineering company receives the following three assignments:

– Assignment A: Manufacture a customised machine according to the specifications of one customer.

– Assignment B: Manufacture 1,000 identical electronic components together as one production lot.

– Assignment C: Execute a two-year construction project at the customer’s site.

Analyse the nature of each assignment and recommend whether Job Costing, Batch Costing or Contract Costing should be applied in each case. Justify each recommendation based on the nature of the cost unit, production/order characteristics and duration of the work. (5 Marks)

Ans 2(B).

Introduction

The three assignments differ in the way work is ordered, how close the outputs are as well as the length of time that the work takes. This is what determines the costing technique that is most suitable because batch, job and contract pricing are made to work with a specific type of production.

Concept and