Q1 WAGES CN BE CALCULATED UNDER WHICH OF THE FOLOOWING

SYSYTEMS..?
ANS 1 gantt task and effecincy system
2. emersons effecincy system
3.rowan system
4.halsey sytem
5. barth system
Q2 WHAT IS BLANKET OVERHEAD RATIO?
ANS 2.Blanket overhead ratio is one single overhead absorptin rate for the whole
facctory.It can be computed;
blanket overhead ratio

;overhead cost for the whole factory

-----------------------------------------------------total units of selected base

selected base can be total output, total labour,total labour hours ,machine hours
etc
THE USE OF BLANKET RATE MAY BE CONSIDERED APPRPRAITE FOR
FACTORIES WHICH PRODUCE ONLY ONE MAJOR PRODUCT ON CONTIONOUS
BASIS.
It may also be used in those units in which all products utilize same amount of
time with each department.
Q3. distinguish between fixed and variable overheads.?
FIXED OVERHEADS
fixed overhead expenses do not vary with the volume of production.in other
words the amount of fixed overheads tends to remain constant for volume of
production within installed capacity of plants.
VARIABLE OVERHEAD
variable overhead costs various indirect proportion to the volume of production .it
increases or decreases indirect relation to any increase or decrese in input.
Q4. EXPLN WHT FDO U MEAN BY CHARGEABLE EXPNS ND EXPLAIN ITS
TREATMENT IN COST ACCNT.?
ANS 4.all expenses other than direct material nd labour cost which are especially

and solely incurred on production process or job are treated as chargeable

expns.these expns in cost accntng are treated as a part of prime cost.
Q5.define selling and distribution expenses nd discuss accounting for selling and
distribution expenses.?
ans 5.SELLING EXPENSES
expenes incurred for the purpose of promoting marketing and sales of different
product.
DISTRIBUTION EXPENSES
expenses related to delivery and dispatch of goods to customers.
The accountng treatment of selling and distribution expenses is thaat they are
usually taken under seperate cost accounts head
Q6. distinguish between job and process costing.?
JOB COSTING
COSTING
1.A job is carried out or a product is
producing a product

PROCESS
1.the process of
has continous

flow and the product

produced by specific product
homogenous

produced is

2.cost are determined for each job.

on time basis

2.costs are compiled

3.each job is seperate and independent of

of a given

that is for production

other jobs
period for each process

accounting
or

department
3. products
loose their individual

identtiy
Q7.EXPLAIN AND ILLUSTRATE CASH BRAK EVEN CHART.?
ANS 7.In cash break even chart only cash fixed cost are considered .non cash
items like depreciation are excluded from fixed cost for computation of break even
point.it depicts the level of output of sales at which the sales revenue be equal to
total cash outflow.
cash break evn chart = cash fixed cost/cost per unit
Q8 EXPLAIN STANDARD COSTING?
ANS 8.standard cost is the predetermined cost of manufacturing a single unit
during specific period in the immediate future.
standard costing is a method of costing.In standard costing costs are asscerting
to show standard costs,actual costs,and the difference between the standard cost
and the actual cost.
standard cost is a method because it can be applied to any business
Q9.WHAT IS MATERIAL USAGE VARIANCE.?
ANS 9. MUV measures effecincy in the use of material and indicates whether or
not material was properly utilised.