IMPORTANT THEORY QUESTIONS - CA IPCC - CFM

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IMPORTANT THEORY
QUESTIONS

COSTING AND FINANCIAL MANAGEMENT

FOR CA IPCC/PCC –
May 2013 EXAM

 

ü Differentiate cost centre vs. cost unit

ü  Differentiate
between cost reduction and cost control

ü  Enumerate the  objectives of cost accounting

ü  For optimizing the utility of cost accounting an organization
should possess a suitable cost accounting system. Discuss essential features of
a good cost accounting system

ü  Define
:

-         
Differential
cost

-         
Opportunity
cost

-         
Out-of-pocket
cost

-         
Responsibility
centre

-         
sunk
costs

-         
Discretionary
costs

-         
Conversion
cost

-         
Uncontrollable costs

-         
Retention money

-         
Escalation clause

-         
split off point

-         
External Commercial Borrowings (ECB)

-         
Debt
securitization

-         
Zero Coupon Bonds

-         
Methods of
segregating Semi-variable costs into fixed and variable costs

ü  Differentiate:

-         
Perpetual inventory & continuous
stock taking

-         
Implicit
costs& explicit costs

-         
Bin Cards & Stores Ledger

-         
- 
re-order level and re-order quantity

-         
Product
costs & period costs

-         
Time Keeping and Time Booking

-         
Job Evaluation
& Merit Rating

-         
Allocation and apportionment

-         
Blanket
overhead rates & departmental rates

-         
Casual Worker
and Outworker

-         
Job & contract costing

-         
Job costing & process costing

-         
Joint-product and by-product

-         
Marginal costing and absorption costing

-         
Fixed and flexible budget

-         
ADR Vs. GDR

-         
Implicit vs.  Explicit cost of capital

-         
Bridge finance and seed capital assistance

ü  Differentiate
between WASTE and SPOILAGE and its cost accounting treatment

ü  How
ABC ANALYSIS does helps us in optimizing cost structure of an organization.

ü  Discuss
the concept of overtime premium & its accounting treatment

ü  Identify
the causes of labour turnover & costs which are associated with labour
turnover

ü  Treatment of under-absorbed overheads in cost accounting

ü  Discuss General ledger adjustment
account

ü  Enumerate
the concept integrated accounting system and pre-requisites for integrated
accounts

ü  Identify
the causes for differences between Income under cost and financial  accounts

ü  List down the advantages of cost plus contract

ü  Discuss
the accounting treatment of by-product           

ü  Discuss
cost-volume-profit analysis

ü  Discuss
basic aspects of financial management

ü  List
down characteristics of source of funds

ü  Methods
of computation of time value of money

ü  Briefly
discuss the working capital cycle

ü  Discuss
the types of floats in the context of cash management

ü  Discuss
the lock box system

ü  Discuss
miller – Orr cash management model

ü  List
down the functions of the treasury department:

ü  Discuss
the procedure for factoring

ü  List
down the features of commercial papers

ü  Discuss
on ploughing back of profit

ü  Discuss
Modified internal rate of return method

ü  Define
optimum capital structure and its benefits.

ü  List
down the assumptions in capital structure theories

ü  List
down the assumptions under Modigliani and miller approach (mm)

ü  Difference
between funds flow statement & cash flow statement

ü  Brief
on concept of trading on Equity

ü  List
down methods of Venture Capital Financing

ü  Briefly
discuss lease financing

ü  Need
for debt service coverage ratio

ü  Discuss
Du Pont chart for calculating return on equity

 

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