Subject: Cost Accounts

Topic: Theory Questions-Set 2 By: Questionscastle Academic Team Document Code: CA/IPCC/CST/0004

Chapters Covered • Reconciliation of Cost & Financial Statement

• Cost Book Keeping

• Process Costing

• Operating Costing

• Job and Batch Costing

Reconciliation of Cost & Financial Statement

Q 1. What are the reasons for disagreement of Profits as per financial accounts and Cost accounts?

Discuss.

(CA Inter May 2000, Nov 2000, CA PE II May 2006, Nov 2007, CA PCC May 2007)

Q 2. Why is it necessary to reconcile the profits between the Cost Accounts and Financial Accounts?

(CA PE II May 2004)

Q 3. “Reconciliation of cost and financial accounts in the modern computer age is redundant.” Comment.

(CA Inter May 1998)

Cost Book Keeping

Q 1. Write short notes on Cost Ledger Control Account.

(CA Inter May 1996, CA PE II Nov 2006)

Q 2. List three main advantages of “Integrated Accounts”.

(CA Inter May 2002, Nov 1997, CA PE II May 2007)

Q 3. Write a brief note on Integrated Accounts.

(CA Inter May 1999, May 1995, May 1998, CA PE II May 2007)

Q 4. State the essential pre-requisites of integrated accounting system.

(CA Inter Nov 1999, CA PE II Nov 2006, CA PCC Nov 2007)

Process Costing

Q 1. “The value of scrap generated in a process should be credited to the process account”. Do you

agree with the statement? Give reasons.

(CA Inter Nov 1995)

Q 2. Explain normal wastage, abnormal wastage and abnormal gain and state how they should be dealt

with in process Cost Accounts.

(CA Inter Nov 1998, May 1995)

Q 3. Explain Equivalent unit.

(CA Inter May 2002)

Q 4. Distinguish between: Job Costing and process costing.

(CA Inter Nov 1996, Nov 1998)

Q 5. Discuss the treatment of by product cost in cost accounts.

(CA PE II Nov 2007)

Q 6. Explain Operation Costing.

(CA Inter May 2002)

Operating Costing

Q 1. Write Short note on Operating Costing.

(CA Inter May 1996)

Q 2. “The more kilometers you travel with your own vehicle the cheaper it becomes”. Comment briefly on

this statement.

(CA Inter Nov 1995)

Q 3. Distinguish between Absolute ton-kms and Commercial ton-kms.

(CA PE II Nov 2006)

Job and Batch Costing

Q 1. Describe Job Costing and Batch Costing giving examples of industries where these are used.

(CA Inter May 2001)

Q 2. Distinguish between: Job Costing and Batch Costing.

(CA PE II Nov 2004)

Q 3. In batch costing, how is Economic Batch Quantity determined?

(CA Inter May 2001, CA PE II May 2007)

Q 4. Distinguish Between Job Costing and Process Costing.

(CA Inter Nov 1996)