Cost and Managerial Accounting, OBB 601, OBB 601 ASSIGNMENT, OBB 601 ASSIGNMENT Section-A, Cost and Managerial Accounting (OBB 601) – ASSIGNMENT
Cost and Managerial Accounting (OBB 601) – Semester VI
Assignment: Section-A
- You will be required to complete all Assignments in each Course for successful completion of your Internal Assessment.
- This section contains 5 essay type questions out of which 3 needs to be attempted.
- Answers should not be repeated and if found so, they may be discarded by the evaluator.
- Uploading of files & web links are not permitted.
- Please write in the answer box provided.
- Answers may be expected within the word limit of 300 words.
- The total time allotted for this section is 420 minutes (7 Hours).
- Once initiated, the assignment needs to be completed within 7 Hours. The assignment will be auto submitted after the prescribed time.
Questions Are Given Below:-
Q1- What do you mean by a different element of cost and what are different types of cost?
Q2- Explain the cost control and how it is different from cost reduction.
Q3- What are different methods of costing and also give one example in each method.
Q4- Explain variance analysis and what are its objectives.
Q5- What do you mean by overheads and how overhead absorption is calculated?
Q1 – What do you mean by a different element of cost and what are different types of cost?
Answer: There are mainly three types of cost(s), They are:-
- Material Cost: This is the cost of material or the commodity used by the organization for its production purpose. Material is the substance, from which a product is made. Thus, it may be in a raw or a manufactured state. It can be direct or indirect. Or, Material cost refers to the cost of substances from which the product is made. Materials enter into the production process and form part of the finished product. For example, paper used in book.
(a) Direct Material Cost forms an integral part of the finished product and is identified with the individual cost center. It is also described as process material, stores material, production material, etc. Example: Raw materials purchased or purchased primary packing material, etc.
(b) Indirect Material Cost is used for ancillary purposes of the business and cannot be conveniently identified with the individual cost… Please Visit & Purchase The Full Answer Key.
Q4 – Explain variance analysis and what are its objectives.
Answer: Variance analysis measures the differences between expected results and actual results of a production process or other business activity. Measuring and examining variances can help management contain and control costs and improve operational efficiency.
Prior to an accounting period, a budget is made using estimates of material and labor costs and amounts that will be required for the period. After the accounting period, compare the actual material and labor costs and amounts to the estimates to see how accurate the estimates… Please Visit & Purchase The Full Answer Key.
Q2. Explain the cost control and how it is different from cost reduction.
Answer – First let us discuss about the cost control,
Business firms aim at producing the product at the minimum cost. It is necessary in order to achieve the goal of profit maximization. Profit is the difference between selling price and cost of production. Generally, the selling price is not within the control of a firm but it can minimize the cost. In fact, the success of a business firm is judged in controlling its costs. Cost control by management means a search for better and more economical ways of completing each operation. Cost control is simply the prevention of waste within the existing environment.
It aims at reducing costs and increasing the profitability of the firm. This is done by reduction in specific expenses of the firm and making a better use of the money spent. If a firm is producing… Please Visit & Purchase The Full Answer Key.