Ca final and ipcc costing important theory qns

varahi (STUDENT) (2373 Points)

29 April 2013  



 - CA Final – May. 2013 EXAM

1. Distinguish between:

·       Partial plan and single plan

·       marginal costing and absorption costing

·       Traditional management accounting
and  value chain analysis

·       Traditional absorption costing and ABC

·       Value added & non-value added

·       Monopolistic competition vs. oligopoly


2.Short notes on:

·       continuous process improvement.

·       Breakeven chart

·       Dual plan

·       Curvilinear cvp analysis

·       Angle of incidence

·       throughput accounting

·       Value engineering

·       Budget manual

·       Committed Cost

·       Cost plus pricing

·       Business process re-engineering

·       Penetration pricing strategy

·       six C's and 4P's are of TQM


3.Discuss disposal of variances in standard costing

4."Use of absorption costing method for the valuation of finished goods inventory
provides incentive for over-production." Elucidate the statement

5. Discuss the non-cost factors to be
considered for deciding in favour of shut down

6. Discuss the assumptions to be
considered under CVP.

7. Identify the circumstances it may be
justifiable to sell at a price bellow marginal cost

8. Discuss the limitations of using the
marginal costing technique

9. Identify the Non-cost factors to be
identified in making make/buy decision.

10. Briefly explain the advantages of
Zero based budget.

11. Discuss the objectives of transfer
pricing system and various methods of Transfer pricing.

12. Brief on how the Transfer pricing
conflicts can be resolved effectively?

13. Disadvantages of treating divisions
as profit centres

14. List down the important features of
target costing system

15. Highlight the points to be borne in
mind before implementing a target costing system.

16. What is the significance and
features of product life cycle costing.

17. Briefly explain objectives &
pre-requisite of uniform costing

18. Pre-requisites of installing
inter-firm comparison system

19. Identify the Steps involved in value
chain analysis approach for assessing competitive advantages.

20. List down method of costing to be
adopted in service sector


21. Identify the conditions to be
satisfied for a cost to be classified as relevant cost.

22. Area in which applications of
incremental cost techniques in making managerial decisions

23. Identify the need for ABC costing.

24. Discuss various types of activities.

25. Identify the areas where ABC can be
used as a decision making.

26. Discuss various types of Competitive

27. List down the conditions to be
satisfied for price discrimination

28. Identify the pricing practices where
non-cost reasons are important in setting prices.

29. Define Pareto analysis and its area
of application.


30. Discuss the three core concepts of TQM.

31. Brief on stages in the implementation
of TQM.

32. How effective is JIT in elimination
of wastage of resources.

33. What do you mean by back flushing in
a JIT system?

34.List down the objective of Material requirement planning

35.List down the minimum data requirements to operate material requirement
planning system.

36.List down the objective of theory of constraints

List down the goals and performance measures for each perspective of balance



ü Differentiate cost centre vs. cost unit

ü  Differentiate
between cost reduction and cost control

ü  Enumerate the  objectives of cost accounting

ü  For optimizing the utility of cost accounting an organization
should possess a suitable cost accounting system. Discuss essential features of
a good cost accounting system

ü  Define
-   Differential cost

-     Opportunity cost

-      Out-of-pocket cost

-     Responsibility centre

-      sunk costs

- Discretionary costs

-  Conversion cost

-  Uncontrollable costs

-   Retention money

-   Escalation clause

-   split off point

-   External Commercial Borrowings (ECB)

-   Debt securitization

-    Zero Coupon Bonds

-    Methods of
segregating Semi-variable costs into fixed and variable costs


ü  Differentiate:

-      Perpetual inventory & continuous
stock taking

-    Implicit
costs& explicit costs

-     Bin Cards & Stores Ledger

- re-order level and re-order quantity

-        Product
costs & period costs

-         Time Keeping and Time Booking

-         Job Evaluation
& Merit Rating

-       Allocation and apportionment

-      Blanket overhead rates & departmental rates

-   Casual Worker and Outworker

-         Job & contract costing

-         Job costing & process costing

-         Joint-product and by-product

-         Marginal costing and absorption costing

-         Fixed and flexible budget

-      ADR Vs. GDR

-         Implicit vs.  Explicit cost of capital

-        Bridge finance and seed capital assistance

ü  Differentiate
between WASTE and SPOILAGE and its cost accounting treatment

ü  How
ABC ANALYSIS does helps us in optimizing cost structure of an organization.

ü  Discuss
the concept of overtime premium & its accounting treatment

ü  Identify
the causes of labour turnover & costs which are associated with labour

ü  Treatment of under-absorbed overheads in cost accounting

ü  Discuss General ledger adjustment

ü  Enumerate
the concept integrated accounting system and pre-requisites for integrated

ü  Identify
the causes for differences between Income under cost and financial  accounts

ü  List down the advantages of cost plus contract

ü  Discuss
the accounting treatment of by-product           

ü  Discuss
cost-volume-profit analysis

ü  Discuss
basic aspects of financial management

ü  List
down characteristics of source of funds

ü  Methods
of computation of time value of money

ü  Briefly
discuss the working capital cycle

ü  Discuss
the types of floats in the context of cash management

ü  Discuss
the lock box system

ü  Discuss
miller – Orr cash management model

ü  List
down the functions of the treasury department:

ü  Discuss
the procedure for factoring

ü  List
down the features of commercial papers

ü  Discuss
on ploughing back of profit

ü  Discuss
Modified internal rate of return method

ü  Define
optimum capital structure and its benefits.

ü  List
down the assumptions in capital structure theories

ü  List
down the assumptions under Modigliani and miller approach (mm)

ü  Difference
between funds flow statement & cash flow statement

ü  Brief
on concept of trading on Equity

ü  List
down methods of Venture Capital Financing

ü  Briefly
discuss lease financing

ü  Need
for debt service coverage ratio

ü  Discuss
Du Pont chart for calculating return on equity