COST ACCOUNTING

​COST ACCOUNTING TRIAL  QUESTION​S

{For wassce Bece Novdec Nabptex whatsapp 0547316472}

PAPER 2
SECTION A: THEORY

1. (a) What is labour? (2 marks) (b) Explain labour turnover. ( 3
marks )
(c) State five causes of labour turnover
( 10 marks)
2. (a) What is stock control? (5 marks)
(b) Explain five factors that determine the levels of stock to be
kept in store by an organization. (10 marks)
3. (a) Explain the activity based costing model.
(3 marks )
(b) State four differences between the activity based costing
and the traditional product cost system.
(12 marks )
4. Explain the following types of cost:
(a) Material cost (b) Period cost (c) Product cost
(d) Functional cost
(e) Marginal cost ( 15 marks )

​SECTION B​
​[PRACTICE]​
5. Adom Ltd has provided the following forecast in respect of
usage of material ‘G’.
Maximum usage per month 600 units Normal usage per month
400 units Re-order quantity 2000 units
Re-order period 3 – 5 months
You are required to calculate:
(a) Re-order level (4 marks)
(b) Minimum stock level (4 marks)
(c) Maximum stock level (4 marks)
(d) Average stock level (3 marks)
6. From Jan. 2009 to May 2009 R.K Mensah who produces and
sells a standard product, managed to maintain a constant
selling price per unit and a constant variable cost per unit. The
summary of the results for the period is shown below:
Month Output Total Profit/
(units) Cost Loss
GH¢
GH¢
Jan.
10,000
440,000
(90,000)
Feb.
18,000
600,000
30,000
Mar.
20,000
640,000
60,000
April
15,000
540,000
(15,000)
May
24,000
720,000
120,000
You are required to calculate the:
(i) Variable cost per unit; (ii) Monthly fixed cost;
7(iii) Selling price per unit;
(iv) Monthly output required in order to break-even; (v) Margin
of safety (in percentage) achieved in May.

{For wassce Bece Novdec Nabptex whatsapp 0547316472}