# BBM 302 COST ACCOUNTING – Click to view MAASAI MARA UNIVERSITY
UNIVERSITY EXAMINATIONS (SCHOOL BASED)
UNIT CODE: BBM 302.
UNIT NAME: COST ACCOUNTING.
GROUP: BACHELOR OF EDUCATION ARTS YEAR THREE SEMESTER ONE.
INSTRUCTIONS: ANSWER QUESTION ONE AND ANY OTHER THREE.
TIME: 2 HOURS.

QUESTION ONE.
(a) Discus any five general principles of cost accounting. (10 marks).
(b) Explain the nature and significance of cost accounting.
(10 marks).
(c) Discuss the meaning of costing and the various methods of costing. (10 marks).

QUESTION TWO.
(a) During the year 2014 famers united produced 50,000 units of a product. The following were the expenses. Required; define the term cost sheet and use the information above to prepare a cost sheet showing the cost per unit and the total cost at each stage. (10 marks)
(b) Discuss the concept of economic order quantity and state its formula. (5 marks).

QUESTION THREE.
(a) Discuss the similarities and differences between management accounting and cost accounting. (10 marks).
(b) Explain the meaning and types of overheads in a manufacturing firm. (5 marks).

QUESTION FOUR.
(a) WPPSCAN group has five departments P,N,R and S are producing departments while T is a service department. The actual costs for

the period are as follows. Required; define the concept of apportionment of costs and apportion the various costs into various departments on equitable basis. (10 marks).
(b) Calculate the payments of a worker under Rowan plan and Halsey plan and make conclusions from the following information.
(i) Hourly rate of wages shs. 50.
(ii) Standard time for producing a dozen of items 3 hours.
(iii) Actual time taken by a worker to produce 20 dozens of items. 48 hours. (5 marks).

QUESTION FIVE.
(a) Discuss the contemporary issues in cost accounting in detail.
(10 marks)
(b) Explain the concepts of batch and contract costing.(5 marks).

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