1. Define costing and cost accounting. Explain the major advantages of cost accounting. (20)
2. (a) What are the steps involved in purchase of material?
(b) Explain in detail the FIFO method of pricing with the help of imaginary figures. (10, 10)
3. Differentiate between the following:
(a) Cost Accounting and Financial Accounting.
(b) Cost Sheet and Production Account.
(c) Reconciliation Statement and Memorandum Reconciliation Account.
(d) Job Costing and Contract Costing. (4 × 5)
4. Explain various methods of absorption of factory overheads. (20)
5. Write short notes on the following:
(a) ABC analysis
(b) Treatment of shortage of materials
(c) Rowan Premium Plan
(d) Cost centre (4 × 5)