ECO-10 Solved Assignment 2018-19
Course Code : ECO – 10
Course Title : Elements of Costing
Assignment Code : ECO – 10/TMA/2018-19
Coverage : All Blocks
Attempt all the questions.
1. “Cost may be classified accordingly to their nature and characteristics.” Elaborate on this statement
and explain about fixed costs, variable costs and semi-variable costs with suitable examples. (20)
2. Explain with examples the following methods of pricing the issue of materials.
(a) FIFO (b) FIFO
Under conditions of rising prices, which of these two methods would you recommend and why?
3. (a) Discuss the various principles of apportionment of overheads. Give few examples of the bases
used for apportionment and re-apportionment.
(b) Explain different method of absorption of administrative overheads. Which method would you
prefer and why? (10, 10)
4. The following figures are available at the end of a financial year relating to a contract.
Total cost of work done to date 1,10,350
Cost of work uncertified 8,300
Contract Price 5,80,000
Value of Work Certified 1,40,000
Determine the amount of Profit to be taken to Profit and Loss Account. (20)
5. (a) Write Short notes on the following :
(i) Joint products
(ii) Abnormal effectiveness (5, 5)
(b) Explain the need for reconciliation of cost and financial accounts.