ECO-10 Solved Assignment In English For IGNOU
Course Title: Elements of Costing
Following questions are answered in this solution:
Q. 1. “Cost may be classified acording to their nature and characteristic”. Elaborate on this statement and explain the differenr methods of costing.
Q. 2. Differentiate between the following:
(a) Cost Accounting and Financial Accounting.
(b) FIFO and LIFO methods for the pricing of issue of material.
Q. 3. What are the various principles of apportionment of overheads? Explain and give examples of the bases used for apportionment and re-apportionment.
Q. 4. What are the main causes of difference between profits shown by Fiancial Accounts and profit shown by Cost Accounts? Give reasons as to why it is necessary to reconcile cost accounts and financial accounts? State the accounting procedure adopted for their reconciliation.
Q. 5. (a) State how would you ascertain the actual profit on an incomplete contract? How far such profit is taken to profit and loss account?
(b) Explain how normal and abnormal process losses are treated in cost accounts?