Class 12 Accounting Question Paper 2080/2081 | Set B

Grade 12 Accounts Important Questions for 2080/2081

Hi, class 12 students our team at Notesdada has presented you an NEB Grade 12 2079 (2023) Model Questions for Accounting. 

Class 12 Accounts Important Questions 2080/2081

Class 12 Accounts Important Questions 2080/2081

Class 12 Accounts Important Questions 2080/2081

Class 12 Accounts Important Questions 2080/2081

Class 12 Accounts Important Questions 2080/2081

Class 12 Accounts Important Questions 2080/2081

Class 12 Accounts Important Questions 2080/2081

Some Important Questions 2080/2081 - Accounting

1. Write any five objectives of cost accounting.

The five objectives of cost accounting are furnished below:

a) Valuation of stock:

The important objective of cost accounting is to ascertain the cost per unit. The cost per unit is used for valuing the stock.

b) Cost estimation: 

The next objective is to estimate the future costs which are useful for bidding on the tenders and making decisions, regarding expansion, diversification, modernization, scale of operation, etc.

c) Planning and control:

 It is an important objective of cost accounting. Planning involves laying down objectives and determining the future course of action. Controlling involves comparing the actual performance with the standards set finding deviations and applying remedial measures to correct them.

d) Decision making: 

The next objective is to provide necessary cost data for making various managerial decisions like sale or buy, selling below cost, utilization of idle plant capacity, and introduction of new products.

e) Determination of price:

 The cost per unit of product or service is the basis for determining the selling price of the product manufactured or services rendered.

2. Write any four limitations of financial accounting. 

The four limitations of financial accounting are:

1. Financial accounting fails to report the cause of inefficiency and net result component-wise. It provides the result of the total activities of the firm but fails to show department-wise, job-wise, process-wise or contract-wise results.
2. It does not classify expenses as fixed, variable, direct, or indirect. Thus it is a problem for some to know the behavior of cost.
3. It does not make any difference between avoidable and unavoidable wastage resulting from defective material, idle time, idle machine, etc.
4. Evaluation of the performance and efficiency of the organization in the use of materials, labor, and overhead costs cannot be made. Variation of standard with actual performance cannot be found out.

3.  What do you mean by the First in First out (FIFO) method?

The first in the First method is one of the methods of pricing the issue of material. Under the FIFO method of pricing the materials issued come first in the store and are priced at the cost at which they were purchased. In simple words, the materials received first are issued first and pricing is made at the cost price at which they were purchased. If the quantity required to be issued is greater than the remaining in the first lot the cost price of the 2nd lot is used, then of the third and fourth, and so on until enough material is obtained to fill the requisition. This method is most suitable in times of falling prices because the issue price of the material will be high while the cost of replacement of materials will be low. But in case of rising prices, this method is not suitable because the issue price of materials will be low while the cost of replacement of material will be high.

4. Mention the disadvantages LIFO method.

The disadvantages of the LIFO method are as follows:

1. This method is not suitable in times of falling prices because this will result in lower charges to production and a higher value of closing stock.
2. Clerical errors may crop up in pricing where there is a large number of purchases.
3. Two jobs may be charged at different rates causing difficulty in comparing the costs of jobs.

5. What is a store Bin Card? Give a specimen of Bin Card.

A document used in the store department to show the receipt, issue, and balance of each item of material is called a Bin Card. The Bin Cards show the details of receipts and issues of materials and the balance in stock at any time. In the Bin Card, the stock level like minimum stock level, maximum stock level, and re-order stock level of each item are mentioned which are helpful for store-keepers for initiating purchase requisition. Store ledger Folio Number and the location of the material are also shown in it. All the receipts and issues entries made in Bin Card are supported by relevant documents such as Goods Received Note, Materials Return Note, Stores Requisition Note, etc. An entry is made at the time of each receipt or issue and the balance in hand of the stock is calculated. The records so made in Bin Card are in terms of quantity only and not the value of material.

6. Mention any two advantages of the time rate system of wage payment. or, Write any five disadvantages of the Time Rate system of wage payment.

The five disadvantages of the Time Rate System of wage payment are as follows: 

1. Efforts and rewards are not co-related because both efficient and inefficient workers get the same rate of wage. So there is no inducement for the hard work.
2. The time rate system does not encourage efficiency. It creates dissatisfaction among efficient workers who lose efficiency gradually.
3. The workers do not have any scope to increase their income by producing more; hence, idleness gradually develops in them.
4.  The cost of supervision increases and output falls.
5. Labor costs cannot be estimated in advance.

7. Write any five advantages of the piece rate system of wage payment.

The five advantages of the piece rate system of wage payment are mentioned below: 

1. Efficient workers produce more and hence they earn more wages under a piece rate system of wage payment.
2. The output is increased because the workers try to earn more by producing more in their own interest.
3. The cost of supervision is low,
4. Less efficient workers try to develop skills and zeal to work.
5. Greater output reduces fixed overhead per unit.

8. Write any five disadvantages of the piece rate system of wage payment.

The disadvantages of the piece rate system of wage payment are furnished below:

1. The workers are always in a hurry. As a result of this, the quality of the product or work is likely to deteriorate and accidents may take place.
2. Speedy production work may create more scraps, defects in work, and more chances of breakdown of machinery and equipment.
3. Breakdown of machines and power failure disappoint the workers.
4. Minimum wage is not guaranteed to the workers.
5. Under this system efforts and rewards are co-related.

9. What do you mean by direct wages and indirect wages?

Direct wages are the remuneration paid by the factory to its workers involved directly in the manufacturing process. The direct wages can be identified and allocated to the specific job, process, or product. It is a part of prime cost. It can be measured accurately on a per unit-of-output basis. Examples of direct wages are wages paid to workers such as making table printing books, manufacturing products, etc. Indirect wage is the remuneration paid by the factory to its workers who are not directly involved in production activity. It is the wages paid to such workers who assist the direct labor to complete the manufacturing process. It cannot be measured accurately on a per-unit-of-output basis. It is a part of overhead cost. For example, remuneration is paid to watchmen, sweepers, cleaners, supervisors, and office staff.