What do you mean by controllable costs? Give an example. 

2. What is a purchase requisition? To whom it is submitted?
4. What are the objectives of Cost Accounting?
6. Name any four techniques of inventory control.
8. Define the term material control.
10. What are variable overheads? Give two examples.
12. Name the methods of labor turnover.
14. Define Overheads.
16. Briefly state the differences between Cost Accounting and Financial Accounting.

1. (8 points each)

Problem 1

From the following particulars prepare a statement of Cost and Profit.

Raw materials consumed

80,000

Direct wages

50,000

Machine hours worked

10,000 hours

Machine hour rate

2 per hour

Office overheads

20% on works costs

Selling overheads

2 per unit sold

Units produced

10,000 units

Units sold

9,000 units at 25 per unit

Problem 2

Following information is available with respect to a particular type of labor

2. Monthly salary basic pay 2,000
4. House rent allowance 400 per month
6. Leave salary earned 3,500
8. Number of working hours in a month 200 hours

Calculate the cost of labor per day of 8 hours.

Problem 3

1. ABE Company Ltd. Gives the following details about the material X. Monthly consumption 200 units, average cost per order 40. Average price per unit 20, Holding cost 24% per year.

Determine EOQ

2. From the following particulars calculate:
4. Reorder level
6. Minimum level

Maximum consumption 150 units per day

Minimum consumption 50 units per day

Reorder period 25-30 days