Paper 8 Cost Accounting | CMA Intermediate Fill in the blanks



Paper 8 Cost Accounting

Paper 8 Cost Accounting fill in the blanks

A. Fill up the blanks:      

1)  Differential cost is the change in the cost due to change in Activity from one level to another.

2)  CAS 13 stands for cost of service cost centre.

3)  In contract costing, the cost unit is Per Contract.

4)  Marginal cost is the Excess of sales over contribution.

5) When actual cost is less than the standard cost, it is known as Favourable variance.

B. Fill up the blanks:  

1) Cost Control is the process of regulating the action so as to keep the element of cost within the set parameters.

2) In absorption costing Fixed Cost is added to inventory.

3) CAS -13 stands for cost of service cost Centre.

4) At Break even point contribution available is equal to total fixed cost.

5) The document which describes the budgeting organisation, budgeting procedure etc. Is known as Budget Manual.

C. Fill up the blanks:  

1) Quantity Discount/Trade discount/Cash discount is discount allowed to the bulk purchaser.

2) CAS 8 stands for cost of utilities.

3) Under integrated accounting system, the accounting entry for payment of wages is to debit Wages Control Account and to credit cash account.

4) If the actual loss in a process is less than the normal loss, the difference is known as Abnormal gain/Abnormal profit.

5) The principal budget factor for consumer goods manufacturer is normally Sales Demand/Market Demand/Lack Demand

D. Fill up the blanks:  

1) In standard costs, predetermined norm is applied as a scale of reference for assessing actual cost to serve as a basis of cost control.

2) Material Transfer Note is a document for transferring the materials from one job to other job.

3) One of the disadvantages of overtime working is incurring excess (or additional or more or higher) labour cost.

4) CAS-2 deals with Cost Accounting Standard on capacity determination.

5) Where the cost and financial accounts are maintained independently of each other, it is indispensable to reconcile them, as there are differences in the profits of two sets of books.

E. Fill up the blanks:     

1) Profit volume ratio is constant with increase in fixed cost (indicate the nature of change).

2) In the graph showing the angle of incidence, when the quantity is zero, the total cost line cuts the costs axis (y axis) at Fixed Cost Value. (indicate the value)

3) A process account is credited with value for abnormal loss when scrap value is zero(indicate the type of loss).

4) When special material is purchased for direct use in a job, WIP Control account is debited in the Integral Accounts System.

5) VED analysis is primarily used for control of Components or spare parts (indicate type of material).