CA IPCC Costing Important Theory Questions list was provided below for May 2017 Exam. Theory Questions that are Important for CA IPCC Costing were accompanied by respective Marks Weightage. In our earlier post, we have listed out CA IPCC Costing Important Chapters and Topics and also Tips to Pass CA IPCC Costing FM Exam. In this post, we will only concentrate on Costing Theory Questions that CA IPCC Students must put more importance on. We recommend students to cover the entire Costing Syllabus so that no topics are left out. The Basic intention of providing the list of these Important Theory Questions in Costing is that, you will put more stress on these topics in you Study Plan.
Important Theory Question in Costing May 2017
- Important Objectives of Cost Accounting
- Cost Units for various Industries like Power, Transport etc.
- Re-apportionment of Service Department Expenses
- Important Causes of Labour Turnover
- How are Unabsorbed overheads are treated in Cost Accounts
- Difference Between Cost Control and Cost Reduction
- Various types of Cost Centres
- How are Joint Costs apportioned up to the point of separation
- Distinguish between Cost Allocation and Cost Absorption
- Marginal Costing Application in Industries
- Explicit Costs and Engineered Costs
- Important Benefits of Integrated Accounting
- How are Composite units calculated in Operating Costing
Answers for Important Theory Questions May 2017
Out of the Total 15 Questions provided as CA IPCC Costing Important Theory Questions, we have provided solutions for selected important theory questions.
Cost Units for various Industries like Power, Transport etc.
Below are the few examples of Cost Units for various industries.
|Oil||Barrel or Litre|
Explicit Costs and Engineered Costs – Important Theory Questions May 2017
Explicit Costs are also known as Out of Pocket Costs. These costs involve immediate cash payments. Few Examples of Explicit Costs are Salaries, Wages, Office Expenses, Printing and Stationery etc.
Implicit Costs are costs that do not involve immediate Cash payments. Moreover, Implicit Costs are not recorded in the books of accounts too. Opportunity cost is an example of implicit cost.
Cost Control versus Cost Reduction – Important Theory Questions May 2017
Cost control mostly details with maintaining the same level of business costs, where as, Cost Reduction deals with reducing the business costs through various measures.
Cost Control is a preventive function where as Cost Reduction is a Corrective business function.
Conclusion – Important Theory Questions May 2017
The List of Costing Important Theory Questions were prepared by CA Gaurav Agrawal. CA Gaurav is an All India Ranker in CA IPCC and scored 89 Marks in CA IPCC Costing and FM Paper.