Free of Cost ISBN : Appendix. CMA (CWA) Inter Gr. II (Solution upto Dec & Questions of June 2013 included)

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1 Free of Cost ISBN : Appendix CMA (CWA) Inter Gr. II (Solution upto Dec & Questions of June 2013 included) Paper - 8 : Cost and Management Accounting Chapter - 3 : Labour Accounting Dec [4] (a) The accounting treatment of overtime premium in Cost Accounts Reason of Overtime 1. If overtime paid on customers desire to complete the job. 2. If overtime is undertaken in order to cope up with increased production. 3. If overtime is paid due to shortage of labour. 4. If overtime paid for any capital order, such as, fabrication of a machine to be used internally. 5. If overtime is worked to recover production loss due to abnormal conditions such as, strike, lock out, flood, etc 6. If overtime is worked in a department to the fault of another department. Accounting Treatment 1. Overtime premium is charged to that particular Job. 2. Overtime premium is treated as factory overheads. 3. Overtime premium is treated as part of labour. 4. The overtime premium shall be charged to capital work order account. 5. The overtime premium shall be charged to capital work order account. 6. The overtime premium should be charged to that other department Dec [8] (e) Please refer 2011-June [2](a) on page no.75 Chapter - 4 : Overhead Dec [7] (b) Cost Apportionment: Cost apportionment implies the allotment of items of cost to cost centers or department. Common costs, which are not separately identifiable, have to be

2 II-2 assigned to departments/cost centers on some meaning basis. This process of distributing common costs on the a proportionate basis is known as Cost Apportionment. Cost accounting is the sharing of a total cost that was incurred by different cost centers. The total cost is apportioned (shared) among the different areas based on the most suitable condition for sharing the cost. For example the expense of rent is best shared on the basis of floor area and the expense of supervision is best shared on the basis of number of employees. Cost Absorption is the process by which overhead is properly spread over to production for the period. For example, the manufacturing cost of lathe centre is absorbed by a rate per lathe hour. The purpose behind the absorption is that expenses should be absorbed in the cost of the output of the given period. For overhead absorption some suitable basis has to be adopted. The formula used for deciding the rate is as follows: Overhead Absorption Rate = Chapter - 6 : Job, Batch and Contract Dec [4] (b) Contract A/c of New Construction Ltd. Dr. Particulars Amount ` Particulars Amount ` To Direct Materials delivered to site To Materials issued from store 1,20,000 By Material Returned to store 40,000 By Material transferred to another Contract To Wages paid 1,40,000 By Stock of Material (closing) To Direct Expense To Depreciation of plant (80,000-65,000) To Architect s Fees 2,500 To Establishment charges 24,500 To Wages accrued 10,000 To Direct Expenses accrued 6,000 To Notional Profit c/d 60,000 60,000 By Work certified by architect 15,000 By Work not certified by architect Cr. 4,000 9,000 22,000 4,20,000 23,000 Total 4,78,000 4,78,000

3 II-3 To Profit/Loss A/c 36,000 To Transfer to Reserve 24,000 By Notional Profit b/d 60,000 Total 60,000 60,000 Percentage of completion of contract = 100 = 100 = 70% Profit to be taken to Profit and Loss A/c = Notional profit (Because the Contract is 70% Completed 2/3 of notional profit is taken into consideration). = 60,000 = ` 36,000 Contractee Account Particulars Amount ` Particulars Amount ` To value of Work Certified 4,20,000 By Cash Received 3,78,000 By Balance c/d 42,000 4,20,000 4,20, Dec [6] (b) Job Order Costing: Job order costing is a method whereby cost is compiled for a job or work order. Each job or order is different from each other having no similarity and might require special treatment. The cost of each order/job is calculated separately. In such concern, it is necessary to keep a separate record of each lot order of product job from the time the work on the job or product is completed. Feature of Job costing method: (i) Production is done to specific customer not for the market. (ii) Production begins only after getting order from the customer. (iii) Every order is executed as per the requirement of the customer. (iv) Each order retains its identity throughout the production procedure. (v) Duration production cycle is usually short but a large order may extend beyond one year Dec [8] (d) Job costing: It refers to a costing system that determines production cost of individual order/jobs. It involves preparation of separate cost sheet for each job which discloses cost of material, labour charges & Overhead charges. Advantage of Job Costing: 1. Profitability of each job can be determined. 2. It is useful for estimating the cost of similar jobs in future.

4 II-4 3. It provides detailed analysis of cost of material, labour and overhead for each job. 4. It helps in the reduction of spoilage and defective work with a specified job and responsibility for the same can be assigned on individual. 5. It is essential for cost-plus contract where contract price is determined directly on the basis of cost. 6. Comparison of performance in job becomes easier. Chapter - 7 : Process Costing, Joint Products and By-Products Dec [8] (c) Features of the Process Costing: 1. Product passes through more than one process. 2. Products are homogeneous & standard. 3. The output of one process becomes input of the next process and that of last process is transferred to finished stock. 4. Products are not distinguishable while in process. 5. Both Direct and Indirect costs are accumulated for departments or processes. 6. Appropriate method is used in absorption of overheads to the process cost centers. 7. The process loss may arise due to wastage, spoilage and evaporation, etc. 8. The total cost of each process is divided by the total production for the process to obtain average cost per unit of the period. Chapter - 8 : Cost Accounting in Service Sector Dec [2] (a) Comparative cost management for new car and old second hand car Particulars Fixed cost per annum For New Car Small ` Particulars For Old Car ` Depreciation 70,000 Depreciation 80,000 Repair & Services 15,000 Repair & Services 25,000 Taxes & Insurance 6,000 Taxes & Insurance 3,500 91,000 1,08,500 Variable Cost Variable Cost Petrol cost (75/15) ` 5 per km Diesel cost(48/12) ` 4/ km Petrol cost for 12,000 Km 60,000 Diesel cost for 12,000 km 48,000 Petrol cost for 18,000 Km 90,000 Diesel cost for 1,80,000 km 72,000 Total cost for 12,000 km 1,51,000 Total cost for 12,000 km 1,56,000 Total cost for 18,000 1,81,000 Total cost for 18,000 km 1,80,000

5 II-5 (i) For 12,000 km = 12, = ` 2,40,000 (ii) For 18,000 km = 18, = ` 3,60,000 Conclusion Hired care is costlier in both the cases. New Small is Car Cheaper For 12,000 km Second Hand Car is Cheaper For 18,000 km Dec [7] (a) Statement of Variable Cost Particulars 30 students 60 students 90 students 120 students Amount in ` 150 students 10/ student ,200 1,500 ` 20/ student 600 1,200 1,800 2,400 3,000 ` 6/ student Entrance ` 4/ student Total 1,200 2,400 3,600 4,800 6,000 Particulars Statement of Semi-Variable Cost Amount in ` Rent of bus 1,300 2,600 2,600 3,900 3,900 Permit fees Allowance to teachers ,600 3,200 3,200 4,800 4,800 Particulars Statement of Fixed Cost Amount in ` 150 Block entrance fees at Planetarium Prizes to students for games ,000 1,000 1,000 1,000 1,000

6 II-6 Particulars Amount in ` Total Cost 3,800 6,600 7,800 10,600 11,800 Average cost per student Chapter - 11 : Marginal Costing and Decision Making Dec [2] (b) Differential cost analysis is useful for the following Managerial decision (i) Accept or reject an offer at lower than existing price. (ii) Submission of a tender. (iii) Capital expenditure decision. (iv) Make or buy decision. (v) Alternative use of production facility. (vi) Variation in selling price. (vii) Variation in production mix. (viii) Retain or replace a machine. (ix) Processing a product further or not. (x) Evaluation of different alternatives regarding profit improvement. (xi) Optimizing investment plan out of several plans. (xii) Export sales vs. local sales. (xiii) Closing down or continuation of a division Dec [3] (a) Decision regarding the acceptance of Proposal (i) When capacity is 10,000 numbers ` Incremental revenue (2, ) 2,50,000 Less- Incremental expenses ` 30 per number 2, (75,000) ` 40 per number 2, (1,00,000) Setup ` 500 per batch (12,500) Incremental Contribution 62,500 Decision- Company is able to earn extra contribution by accepting the proposal. Hence company should accept it. (ii) When capacity is restricted to 9,000 numbers ` Incremental in revenue by accepting the offer 62,500 Less: Loss of contribution due to loss of sale by 1,000 number (W.N.) (70,000) Loss of contribution (7,500) Decision- The Company should not accept special order.

7 II-7 Working note: 1. Material cost per number 2,25,000/7,500= 30/number 2. Labour per number 3,00,000 = 40/ number 3. Contribution when capacity is 10,000 numbers and current production is 7,500 numbers Sales revenue 7,500 7,150 ` 11,25,000 Less: Variable cost Direct material ` 30 7,500 = 2,25,000 Direct labour ` 40 7,500 = 3,00,000 Setup cost ` = 75,000 ` 6,00,000 Contribution ` 5,25, Contribution when capacity is restricted to 9,000 numbers Sales revenue ` 9,75,000 Less: Variable cost Direct material ` 30 6,500 = 1,95,000 Direct labour ` 40 6,500 = 2,60,000 Setup cost ` = 65,000 ` 5,20,000 Contribution ` 4,55, Loss of contribution due to reduction in sale by 1,000 numbers ` 5,25,000 ` 4,55,000= ` 70, Dec [5] (b) Distinguish between Indifference Point and Break-Even Point- (i) With Regard to Formula: Indifference Point = Break - even point = (ii) With Regard to Definition: Indifference point- The level of sales at which total costs and profits of two points are equal is called indifference point. Break-even point- The point of sale at which company makes neither profit nor loss is called. (iii) With Regard to Purpose: Indifference point: - It is used to choose between two alternative options of achieving the same objective. Break-even point: It is used for profit planning.

8 II Dec [8] (b) Please refer Dec [7] (a) on page no. 246 Chapter - 13 : Budgetary Control Dec [8] (a) Budgeting: It is the process of designing, implementing and operating budgets. It is usually concerned with provision of resource to support plans which are being implemented. Benefit of Budgeting: 1. Business activities are performed in an efficient manner. 2. It establishes divisional and departmental responsibility. 3. It coordinates the activities of different departments. 4. It ensures that proper planning is done in advance so that long term goals can be achieved. 5. It provides a yardstick against which result can be compared. 6. It is an effective means for planning and thus ensures sufficient availability of working capital and other resources. 7. As resources are directed to the most productive use, budgeting helps in reducing the wastages and losses. 8. It guards against undue optimism leading to over expansion because the targets are fixed by the executives after cool and careful thought. 9. It helps in effective utilization of resources. 10. It helps management in planning, co-ordination and control. It also helps to check and evaluate the performance of each department. Chapter - 14 : Standard Costing Dec [3] (b) The various advantages of standard costing system are as under: (i) It helps in effective cost control, planning. (ii) It helps the management in fixation of prices. (iii) It helps in formulating policies like business planning, budgeting and managerial decision making. (iv) It enables objective judgement of people, thus promoting and rewarding the deserving person. (v) It helps the management in measuring and improving operational efficiency and evaluates performance by comparing actual costs with standard costs. (vi) An atmosphere of cost consciousness is created among the staff, managerial as well as workmen, of the business. Standard costing also provides incentives to workers and middle and top executive personnel for efficient work. (vii) It serves as a basis of comparison.

9 II-9 (viii) (ix) (x) It through variance analysis provides a ready means of interpretation of information for the management for the purpose of control and decision making. Ready reporting enhances the value of reports. It facilitates the use of management by Exception principle since the management need to concentrate only on the areas and problems which require its attention through study of variance analysis. It facilitates co-ordination between different functions such as purchasing, production, selling, accounting together while fixing standards. Chapter - 17 : Transfer Pricing Dec [6] (a) Statement of Profit of Division A Particulars When transferred at cost (`) When transferred at costs + 20% When transferred at cost + 20% but there is over spending in division A by ` 4,000 (`) Sale (Outside) 18,000 18,000 18,000 Transfer sale to (26,000 1/2) (26,000 1/2 + 20% of 13,000) Division B 13,000 15,600 18,000* Less: Own Cost 31,000 33,600 36,000 26,000 26,000 30,000 Profit 5,000 7,600 6,000 * Cost of division A + overspending = 26, ,000 = 30,000 Transfer to division B ( ½ of 30,000) =15,000 Total transfer cost = Transfer to division B + 20% of 15,000 = 15,000 + ` 3,000 = ` 18,000 Statement of Profit of Division B Particulars When transferred at cost ` When transferred at cost + 20% When transferred at cost + 20% but there is over spending in division A by ` 4,000 (`) Sale 50,000 50,000 50,000 Transfer sale to Division A (13,000) (15,600) (18,000) Own Cost (22,000) (22,000) (22,000) Profit 15,000 12,400 10,000

10 II-10 Particulars Statement of Total Profit of Company When transferred at cost ` When transferred at cost + 20% When transferred at cost + 20% but there is over spending in division A by ` 4,000 (`) Sale 68,000 68,000 68,000 Less: Total Cost (48,000) (48,000) (52,000) Profit 20,000 20,000 16,000 Chapter - 18 : Uniform Costing & Inter Firm Comparison Dec [5] (a) Total production percentage for all companies is =100 Let us assume that total production be 100 units. Particulars Company A Company B Company C Company D Sale value = 2,960 Total cost = 17,000 Profit (Fair price-cost) Return on Capital employed = 12, = = 15, = 10, = 5, = = 11, = 7, = 3, % 20% Total Sale Value = 29, , , ,900 = ` 62,875 Uniform Price for Industry = 62,875/100 = ` Chapter - 19 : Objective Questions Dec [1] {C} (a) (a) (i) (B) (ii) (E) (iii) (D) (iv) (A) (v) (C) (b) (i) False (ii) False (iii) True (iv) False (v) True = 6, = 5, = 1,725 = 20% 100 = 20%

11 II-11 (c) (i) 6% (ii) Uniform (iii) Relevant (iv) Cost Pool (v) Transfer Price (d) (i) (a) 8,000 units Working- EOQ = 800 = = 8,000 Where- A = Annual demand B = Buying cost per order C = Carrying cost per unit per annum (ii) (c) Profit ` 6,300 Working Profit as per cost account 5,000 Depreciation charged in cost account 12,500 Less- Depreciation charged in financial accounting (11,200) Profit as per financial accounting 6,300 (iii) (c) ` 2,880 Working- Wages under Rowan Plan = Time taken hourly rate + time saved hourly rate = = ` 2,880 (iv) (a) 2,70,000 Working Calculation of ton km= (4 ton 300 km + 2 ton 300 km) 300/2 = 2,70,000 tonnes-km. (v) (b) 5,000 units Break -even point = = = 5,000 units `

12 II-12 Question Paper of June 2013 Chapter - 2 : Material Accounting June [7] (a) The following is the summary of receipts and issues of material in a factory for May Prepare the Stores Ledger (only the quantity and rate columns of the Receipts and Issues are required) according to (i) First In First Out Method; (ii) (iii) Last In First Out Method; Compute the Inventory Turnover Ratio under both (i) and (ii). Which method shows a more favourable situation? (For the purpose of this ratio, do not include shortage value in production cost.) Date: May 2013 Transaction 1 Opening Balance 500 ` 25 per unit 3 Issue 70 units 4 Issue 100 units 8 Issue 80 units 13 Received from supplier 200 ` 24.5 per unit 14 Returned to Stores 15 ` 24 per unit 16 Issue 180 units 20 Received from supplier 240 ` per unit 24 Issue 304 units 25 Received from supplier 320 ` 24.5 per unit 26 Issue 112 units 27 Returned to Stores 12 ` 24.5 per unit 28 Received from supplier 100 ` 25 per unit There was a shortage of 5 units on the 15 th and 8 units on the 27 th. (10 marks) Chapter - 4 : Overhead June [2] (b) How would you deal with the following in Cost Accounts? (i) Fringe Benefits; (ii) Bad Debts. (3 + 2 = 5 marks) Chapter - 6 : Job, Batch and Contract June [4] (b) Explain the treatment of profits on incomplete work in contract accounts. (5 marks) June [6] (b) The Production Department of a factory furnishes the following data for the month of May 2013: Materials used ` 54,000 Direct Wages ` 45,000 Overheads ` 36,000 Labour hours worked 36,000 Machine hours 30,000

13 II-13 For a certain job executed by the Department during the period, the following data is given: Materials used ` 6,000 Direct Wages ` 5,000 Labour hours worked 4,000 Machine hours used 2,400 Calculate the cost of the job when the overheads are charged using (i) Direct Material Cost Rate (ii) Labour Hour Rate (iii) Machine Hour Rate (5 marks) Chapter - 7 : Process Costing, Joint Products and By-Products June [3] (b) What do you mean by a joint product and a by-product? How are they different? (5 marks) June [5] (b) The product of a manufacturing concern passes through two processes, A and B and then to finished stock. It is ascertained that in each process, normally 5% of the total weight is lost and 10% is scrap from which processes A and B realize ` 80 per tonne and ` 200 per tonne respectively. The following are the figures relating to the processes: Process A Process B Materials (tonnes) 1, Cost of Materials `/tonne Wages (`) 28,000 10,000 Manufacturing Expenses (`) 8,000 5,250 Output (tonnes) There was no stock or WIP in any process. Prepare the Process Cost A/c of Process B assuming no inter-process profit mark-up on transfers to Process B. (5 marks) Chapter - 8 : Cost Accounting in Service Sector June [8] Answer the following: (e) State the appropriate costing method and cost units for each of the following industries: (i) Textiles; (ii) Canteen; (iii) Medicines; (iv) Paper; (v) Oil Refinery. (5 marks) Chapter - 10 : Reconciliation of Cost and Financial Accounts June [6] (a) From the following figures, do the reconciliation process to arrive at the net profit or loss as per financial accounts: Figures (`) Net loss as per Costing Records 1,72,400 Works overhead under recovered in Costing 3,120 Administrative overhead recovered in excess in Costing 1,700 Depreciation charged in Financial Records 11,200

14 II-14 Depreciation recovered in Costing 12,500 Interest received not included in Costing 8,000 Obsolescence charged (loss) in Financial Records 5,700 Income Tax provided in Financial Books 40,300 Bank Interest credited in Financial Books 750 Stores Adjustment (credit) in Financial Books 475 Value of Opening Stock in Cost A/cs 52,600 Value of Opening Stock in Financial A/cs 54,000 Value of Closing Stock in Cost A/cs 52,000 Value of Closing Stock in Financial A/cs 49,600 Interest charged in Cost A/cs but not in Financial A/cs 6,000 Preliminary expenses written off in Financial A/cs 800 Provision for Doubtful Debts in Financial A/cs 150 (10 marks) Chapter - 11 : Marginal Costing and Decision Making June [2] (a) The following are figures relating to a factory for two successive years: Year I Year II ` ` Sales 10,00,000 16,80,000 Marginal Cost of Sales 6,00,000 8,00,000 Contribution 4,00,000 8,80,000 During Year II, the selling price increased by 20% and the company implemented a cost reduction programme very aggressively. You are required to analyse the increase in contribution due to (i) Increase in selling price (ii) Increase in sales volume (iii) Reduction in cost ( = 10 marks) June [5] (a) A company manufactures a product currently utilizing 80% capacity with a turnover of 32,000 units at a selling price of ` 25 per unit. The variable cost of the product is ` 17.5 per unit. Fixed cost amounts to ` 1,50,000 up to 80% of level of output and there will be an additional cost of a supervisor amounting to ` 20,000 beyond that level. Calculate: (i) Activity level (%) at break-even point (ii) Number of units to be sold to earn a net income of 10% of sales (iii) Activity level (%) to earn a profit of ` 1,00,000 (10 marks) Chapter - 12 : Activity Based Costing June [8] Answer the following: (b) Write a short note on the Activity based Costing System. (5 marks)

15 II-15 Chapter - 13 : Budgetary Control June [4] (a) The following information is given to you from the records of P Ltd. for the year 2013: Budgeted Sales Value in 2013: April ` 4,00,000 May ` 4,50,000 June ` 5,20,000 July ` 4,20,000 August ` 4,80,000 Contribution to Sales ratio 40% Fixed Costs ` 12,00,000 for the whole year 2013, includes depreciation ` 3,00,000 per annum Other Information: 40% of each month s sales is produced in the month prior to the sale and 60% in the month of sale. 50% of the direct materials required for production is purchased in the month prior to their use in production. The remaining 50% is purchased in the month of production. Labour costs are paid in the month in which they are incurred and constitute 30% of the variable costs. 60% of the variable costs are direct material costs. Suppliers of direct materials are paid in the month after purchase. The remaining variable costs are variable overhead costs, of which 40% are paid in the month they are incurred and the balance paid in the next month. Fixed costs are incurred at a constant rate per month and paid in the month they are incurred. The expected capital expenditure in June 2013 is ` 1,90,000. The sales receipts budgeted are as follows: May 2013 ` 4,01,700 June 2013 ` 4,50,280 July 2013 ` 4,25,880 The bank balance on is expected to be ` 40,000. Prepare a month-wise cash budget for P Ltd. for the period May to July (10 marks) June [8] Answer the following: (a) What is a principal budget factor? How is it important? List four such factors. (5 marks) (c) Write a short note on flexible budget. (5 marks) Chapter - 14 : Standard Costing June [3] (a) The following information is available in respect of fixed overheads for a production period: Overheads Cost Variance ` 1,400 (Adverse) Overheads Volume Variance ` 1,000 (Adverse) Budgeted Hours 1200 hours Budgeted Overheads ` 6,000 Actual rate of recovery of Overhead ` 8 per hour

16 II-16 You are required to compute the following for the given production period: (i) Actual Overheads Incurred (ii) Overhead Expenditure Variance (iii) Overheads Capacity Variance (iv) Actual Hours for Actual Production ( = 10 marks) June [8] Answer the following: (d) How are normal and abnormal idle time dealt with in Standard Costing in computing idle time variance? (5 marks) Chapter - 17 : Transfer Pricing June [7] (b) What are the methods of fixing Transfer Price for transfer of a product from one profit centre to another? Mention one demerit of each method. (5 marks) Chapter - 19 : Objective Questions June [1] {C} (a) Match the statement in Column I with the appropriate statement in Column II: Column I Column II (i) Apportionment of Overheads (A) Job Evaluation (ii) Equivalent Production (B) Reciprocal Method (iii) Point Ranking Method (C) Cost Ledger Accounts (iv) Output Costing (D) Process Costing (v) Non Integrated Accounts (E) Coal Industry (1 5 = 5 marks) (b) State whether the following statements are True or False : (i) Fixed cost per unit remains constant irrespective of the number of units of output. (ii) An efficient worker always gets more bonus under Rowan Plan than under 50% Halsey Plan. (iii) A bin card shows the quantity and value of a stores item. (iv) Cost Ledger Control Account is maintained in the costing books while General Ledger Adjustment Account is maintained in the financial books. (v) In LIFO method of valuing inventory, the company has to suffer loss due to accumulation of old stocks and consequent spoilage and obsolescence. (1 5 = 5 marks) (c) Fill in the blanks suitably: (i) centre is defined as a business entity s segment by which both revenues are earned and costs are incurred. (ii) Level of stores inventory is maximum usage multiplied by maximum lead time. (iii) The most appropriate cost unit for pricing and costing goods transport is.

17 II-17 (iv) (v) Where the production is as per the requirements of the customers, is the method of costing used. Where there are two raw materials A and B, and the total material mix variance is favourable and if A has a favourable mix variance, then B will have a mix variance that is. (1 5 = 5 marks) (d) In the following cases, one of the four given answers is correct. You are required to indicate the correct answer (= 1 mark) and give brief workings (= 1 mark): (i) T Ltd. uses pre-determined overhead rate of ` 15 per labour hour. The actual labour hours are 5750 and the actual overhead cost is ` 85,000. There is (a) ` 1,250 over absorption (c) ` 1,000 over absorption (b) ` 1,250 under absorption (d) ` 1,000 under absorption (ii) A chemical process has a normal yield of 90%. In a period, 5000 kgs of material were introduced and there was an abnormal loss of 150 kgs. The quantity of good production is (a) 4850 kgs (c) 4500 kgs (b) 4650 kgs (d) 4350 kgs (iii) If break-even sales is 60% of current sales and profit is ` 60,000, then the amount of contribution will be (a) ` 1,00,000 (c) ` 1,50,000 (b) ` 36,000 (d) ` 1,86,000 (iv) The following information is given for the next year: Budgeted Sales = 5,00,000 units Finished Goods: Closing Stock = 1,50,000 units; Opening Stock = 80,000 units. Equivalent units of WIP: Closing Stock = 60,000 units; Opening Stock = 50,000 units. The number of equivalent units produced would be (a) 5,80,000 units (c) 5,00,000 units (b) 5,50,000 units (d) 5,75,000 units (v) A production process has the capacity to produce either 4,000 units of A or 3,500 units of B or 5,000 units of C. Only one product can be made in a production period. The contributions per unit of A, B and C are ` 10, 11 and 8 respectively. The opportunity cost of A would be (a) ` 44,000 (c) ` 50,000 (b) ` 38,500 (d) ` 40,000 (2 5 = 10 marks) Shuchita Prakashan (P) Ltd. 25/19, L.I.C. Colony, Tagore Town Allahabad Visit us :

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