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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
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AEREN FOUNDATION’S Maharashtra Govt. Reg. No.: F-11724
Name :LeemaNoori Marks : 80
Course :Bachelors in Management Studies (BMS)
Subject :Financial and Cost Accounting
Answer the following question.
Question.1. State the objectives of cost accounting briefly explain
the advantages of cost accounting. (10 marks)
Answer:Cost accounting is the classifying, recording and appropriate allocation of expenditure for
the determinationof the costsof products or services,andforthe presentationof suitably arranged
data for purposesof control andguidance of management.Itincludesthe ascertainment of the cost
of everyorder,job,contract,process,service orunitasmay be appropriate. It deals with the cost of
production, selling and distribution.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-
SCHOOL

2. Question.2. Define “Costing”, “Cost” and “Cost Accountancy”.
Distinguish between cost accounting and financial accounting. (10
marks)
Answer:Cost,costing,costaccounting and cost accountancy are normally used interchangeably but
they are not synonyms of each other. The meaning of these terms is related and similar but there
are differences.Costisa sacrificedresource toobtainsomething,costingisaprocessof determining
costs, cost accounting is a technique to assist management in establishing various budgets,
standards, etc and cost accountancy is the practice
Question.3. What one the limitations of financial accounting? How
do you overcome item in cost accounting? (10 marks)
Answer:Neteffectof transactions are recordedinfinancial accounting which has happened in past.
These accountsis justpostmortem of all events of business in past .These record does not help for
future planning and other managerial decisions. Financial accounting shows the profitabili ty of
businessbutitisfailure totell thatis it good or bad. Financial accounting is also failure to know the
reasons of low profitability position.
2. Financial accounting deals with overall profitability:
Question.5. What are the objectives of cost accounting and what is
the relation with Management accounting department? (10 marks)
Answer:Cost accounting is distinct and separate from general financial accounting, which is
regulated by generally accepted accounting principles (GAAP) and is responsible for creating
financial statements.Instead,costaccountingaims to report, analyze and lead to the improvement
of inter-businesscostcontrol andefficiency. Cost accounting is a system of operational analysis for
management.
The Scope and Nature of Cost Accounting
Question.6. Explain the significance of cost accounting in a
manufacturing company. (10 marks)
Answer:Manufacturing cost accounting encompasses several tasks that impact production
operations and the valuation of inventory. These activities can significantly boost the profits of a
business,aswell asbringitintocompliance withthe applicable accountingstandards. The following
are all elements of manufacturing cost accounting:

3.  Inventory valuation. This is the fully loaded cost of inventory at the end of an accounting
period, which is required under various

Question.7. Explain the importance of the Marginal cost technique
in managerial decision making? (10 marks)
Answer:Marginal costing is very helpful in managerial decision making. Management's production
and cost andsalesdecisionsmaybe easilyaffectedfrommarginal costing.Thatisthe reason,itis the
part of cost control method of costing accounting. Before explaining the application of marginal
costinginmanagerial decisionmaking,we are providinglittle introductionto those who are new for
understanding this important concept.
Question.8. Explain the term Convention of materiality. (10 marks)
Answer:The materiality concept is the principle in accounting that trivial matters are to be
disregarded,andall importantmattersare tobe disclosed.Itemsthatare large enoughtomatterare
material items.
United States GAAP, for instance, states that items are material if "they could ... influence the
economicdecisionsof [financial statement]users...." In other words, materiality errors can mislead
decision makers.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )