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Cost & Management Accounting
Question 1
Amman , Namman, Pulkit and Amit started with a fast food restaurant, couples of years back. This year all the partners of the restaurant are planning to come up with a chain of restaurant in the city and therefore wants to employ some additional staff. One of the partner, gives an advertisement for recruitment in the Newspaper, for the position of Cost Accountant as well as Management Accountant.
However, Mr. Shinde, the HR manager of the restaurant is confused about difference in the functions performed by the Cost Accountant and Management Accountant.
Discuss how you will convince Mr. Shinde that both the profiles have certain specific set of functions to be performed, which are different from each other. (10 Marks)
Question 2
Prachi Pvt Ltd manufactures two types of wooden boxes, using certain common facilities. The following cost data is presented to you –
Calculate the overhead per unit absorbed using the most practical and effective approach, which gives relevance to the casual relationship of cost drivers to activities. Also, discuss the approach in detail. (10 Marks)
Question 3
A product ‘X’ passes through two processes. The output of Process I becomes the input of Process II. The quantity of raw material introduced into process I is 20000kgs @ 20 per Kg. The additional cost incurred and output obtained for one of the month under review is as under-
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10th November 2018 From India, Bengaluru
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