PREMIER ACADEMY No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 07418548404 visit www.premieracademy.in www.cahariharan.blogspot.com *** **** *** *** *** *** *** *** *** *** *** *** *** COSTING AND FINANCIAL MANAGEMENT IMPORTANT THEORY QUESTIONS FOR CA IPCC – May.2015 EXAM 1) Short notes: - Cost Driver - Responsibility centre - Differential cost - Pre-production cost - Opportunity cost - Cost Object - Out-of-pocket cost - Conversion cost - Retention money - sunk costs - Discretionary costs - Escalation clause - Idle time - ABC analysis - Key factor - integrated accounting system - split off point - Angle of incidence - External Commercial Borrowings (ECB) - Debt securitization - Zero Coupon Bonds - Aging schedule 2) Differentiate: CA IPCC – May.15 Exam FB id: CA K HARIHARAN 1|Page - Product costs & period costs Controllable & uncontrollable Implicit costs& explicit costs Bin Cards & Stores Ledger cost reduction and cost control cost centre vs. cost unit Scrap & wastage Spoilage & defective Casual Worker and Outworker Allocation and apportionment BOM Vs.MRN VED, FSN Perpetual inventory & continuous stock taking Time Keeping and Time Booking Job Evaluation & Merit Rating Marginal costing and absorption costing Fixed and flexible budget Blanket overhead rates & departmental rates Job & contract costing Operation cost & operating cost Job costing & process costing Job Vs. batch costing Joint-product and by-product Profit maximization vs. wealth maximization Implicit vs. Explicit cost of capital Working capital cycle Open ended & close ended lease Business risk & financial risk funds flow statement & cash flow statement ADR Vs. GDR Concentration banking & lock box system Miller – Orr cash management model Bridge finance and seed capital assistance CA IPCC – May.15 Exam FB id: CA K HARIHARAN 2|Page 3) Discuss the concept of overtime premium & its accounting treatment 4) Identify the causes of labour turnover 5) Enumerate the objectives of cost accounting 6) Discuss essential features of a good cost accounting system 7) Methods of segregating Semi-variable costs into fixed and variable costs 8) Costs which are associated with labour turnover 9) Treatment of under-absorbed overheads in cost accounting 10) List down the advantages of cost plus contract 11) Discuss the accounting treatment of by-product 12) Discuss cost-volume-profit analysis 13) Discuss General ledger adjustment account 14) Costing accounting treatment of under absorption and over absorption of overhead 15) Discuss the role of CFO. 16) List down the functions of the treasury department: 17) Enumerate the pre-requisites for integrated accounts 18) Identify the causes for differences between Income under cost and financial accounts 19) Discuss basic aspects of financial management 20) List down characteristics of source of funds 21) Different types of packing credit facilities 22) List down the features of commercial papers 23) Discuss the types of floats in the context of cash management 24) Discuss the procedure for factoring 25) Methods of computation of time value of money 26) List down the assumptions in capital structure theories 27) List down the assumptions under Modigliani and miller approach (MM) 28) Brief on concept of trading on Equity 29) Discuss Modified internal rate of return method 30) Define optimum capital structure and its benefits. 31) Need for debt service coverage ratio 32) Discuss Du Pont chart for calculating return on equity 33) List down methods of Venture Capital Financing 34) Briefly discuss lease financing 35) Discuss on ploughing back of profit CA IPCC – May.15 Exam FB id: CA K HARIHARAN 3|Page