Total No.

of Printed Pages:2

SUBJECT CODE:- 150

FACULTY OF ENGINEERING AND TECHNOLOGY
B.E.(Prod) Examination Nov/Dec 2015
Elective-II: Costing & Financial Mgt.
(OLD)
[Time: Three Hours]

[Max. Marks: 100]

Please check whether you have got the right question paper.
N.B

Q.1

i) Attempt any three questions from each section.

ii) Assume suitable data if required.
Section A
a) Explain with suitable example the elements of cost in detail.
b) With the help of given data determine the selling price of a product.
i.
No of units produced = 210
ii.
Lab our cost = Rs. 11, 000
iii.
Material cost = Rs. 15,000
iv.
Direct Expenses = 125 Hours at the rate of Rs. 4 per hours
v.
factory overheads = 10 % of prime cost
vi.
Other overheads = 12 % of prime cost
vii.
Profit = 20 % of total cost

Q.2

a) Explain the following terms in detail

i) Depreciation
ii) Overheads.
b) A machine shop has 5 lathes, 5 drilling machines & 5 milling machines. Calculate the machine four rates for
laths it the factory expenses for a particular is given as below.
i.
Area occupied by lathes = 10m2
ii.
Area occupied by drill machine = 4m2
iii.
Area occupied by milling machine = 3m2
iv.
Cost of indirect material & labour = Rs.85,000
v.
Rent of building = Rs.34,000
vi.
Insurance = Rs.17, 000
vii.
Depreciation = Rs.10, 000 for lathes
viii.
Power consumed = Rs.10,000 for lathes
ix.
Repair & maintenance = Rs.10,000 for lathes
x.
Machine hours = 7,000 for lathes
Q.3
a) What is tooling cost. Explain elements of tooling cost
b) Select the most economical tooling by using break even method
Method A :- soft tool method
1. Estimated programming cost = Rs.900
2. Special tooling cost = Rs.1500
3. Set up rate = Rs.40 / hr.
4. Set up time = 2 hr.
5. Run cost / piece = Rs.1.60
Method B :- Hard tool method
1. Estimated programming cost = Rs.6000
2. Set up rate = Rs.40 / hr.
3. Set up time = 1.2 hr.
4. Run cost / piece = Rs.0.60
The ultimate production quantity is 1800 units and EOQ is 300 units
K-2015

ac4fd94faaab640f273021ebf8669c37

08
08

08

08

08
08

Q.4

a) What is UNA cost? Derive the equation for it.

b) Two machines A & B has the following cost data :Particulars
Machine A
Machine B
Initial cost
Rs.40,000
30,000
Salvage value
11,000
8,000
Uniform expenses per year
3,000
2,000
Irregular expenses of the
2,500
end of 2nd yr.
Benefits / year
3,000
life of machine
5 years.
4 years.
Compare on the basis UNA
cost & present worth take I
= 10 %

Q.5 Write short notes on any three

i.
Burden and unburden
ii.
Time value of money
iii.
Best policy with uniform Gradient serious
iv.
Capitalized cost method
v.
Indirect labour & organizational size

Q.6

Section B
a) A manufacturing plant has a fixed cost of Rs.50,000, the sell price / unit is Rs.11 & minimum cost of
manufacturing a single unit is Rs.60. Find (1) BEQ (2) P.V ratio (3) BES (4) margin of safety at sales of
Rs.1.60,000.
b) Explain in brief linear breakeven chart

06
10

18

10

06

Q.7

a) Explain cost estimate sheet

b) Explain ports explosion diagram

08
08

Q.8

a) Define budget. Explain sales budget

b) Explain elements of cost control programmer

08
08

Q.9

a) Explain in detail source of finance

b) Differentiate between fixed budget & variable budget

08
08

Q.10 Write short notes on any three

i.
Production Budget
ii.
Cost reporting & corrective action
iii.
Financial Accounting
iv.
Profit path chart & margin of safety
v.
Cost review grid

K-2015

ac4fd94faaab640f273021ebf8669c37

18