 Past Papers Topic-wise Unsolved
 From 2000 – 2018
CSS
2019
Examination Topics
1. Cost Accounting Concepts
& Classifications.
2. Cost of Goods Sold and
Income Statement.
3. Cost Accounting Ledger
System.
4. Material Costing.
5. Labour Costing.
6. F.O.H. Costing.
7. Job & Batch Costing.
8. Process Costing & CPR.
9. Marginal & Absorption
Costing.
10. CVP Analysis & Decision
Making.
11. Budgeting.
12. Standard Costing &
Variance Analysis.
Email:asifgcma@gmail.com
Facebook/adamslearningcentre
whatsapp: 0321 9842495
Examination Structure According to 2015 Revised Syllabus
 CSS Accounting and Auditing is a subject of 200 Marks covered in 2 papers
consisting 100 Marks each, every paper has 20% weightage for MCQs and
80% weightage for Structured Questions.
 Paper – 1 has 2 sections each has 50% Weightage ie 50 Marks for each section.
 Section – A is for Financial Accounting (50%) in which a student needs to attempt
2 out of 3 questions of 20 marks each.
 Section – B is for Cost & Management Accounting (50%) in which a student needs
to attempt 2 out of 4 questions of 20 marks each.
Marginal & Absorption Costing; Examination Importance
Since the syllabus is revised in 2015, some topics of Management Accounting which
were not previously selected now given much importance, Marginal & Absorption
Costing is one of them which was never examined till 2015 but then consecutively
selected in CE 2016 & 2017 papers. In CE 2019 this topic has a great probability of
being selected as it was missed in CE 2018.
Prof. Asif Masood [ACMA, MBA (Finance), M. Phil)] 0321 9842495
Asif Masood is the renowned teacher of CSS Accounting & Auditing, Business
Administrations and Mercantile Law. He is engaged with the profession of
teaching since 1999 and has been a part of faculty of various reputed educational
institutions including GCU, UCP, Superior University and AIOU for MBA, M.Com,
BBA classes. Moreover he is providing coaching to ACCA, CIMA, CPA, CMA, ICAP
and ICMAP students since last 20 years.
For CSS, Prof. Asif Masood is the most experienced and result producing teacher of the
subjects of Accounting & Auditing, Business Administration and Mercantile Law. He is
mentoring CSS Aspirants since 2005 and has hundreds of Aspirants who got coaching
from him and succeeded including the Top Position Holders in CE 2017, Mr. Awaid
Irshad (1st), Mr. Ahmad Faisal Ch, (42nd), Seyyad Ammar Akhtar (48th) and Miss Iqra
Shoukat (116th).
This bunch of past papers are distributed topic-wise and which includes commentary on
each topic regarding its Examination Importance, is for the help and guideline of the
Aspirants seeking to opt Accounting & Auditing as one of their optional subjects to
lite
maximize their aggregate marks in CSS. Good Luck
Prof. Asif Masood
ALC, Lahore
0333 4169258
CSS Accounting & Auditing Marginal & Absorption Costing

Adam’s Learning Centre

CSS Accounting & Auditing
Topic-wise Past Papers (Unsolved)
Marginal V/S Absorption Costing Income Statements
Q. 1 (CSS – 2017, Paper # 2, Part – II, Q. # 7) (20 Marks)

Linden Company manufactures and sells a single product. Cost data for the product as follows:
Variable costs per unit:
Direct materials $6
Direct labor 12
Variable factory overhead 4
Variable selling and administrative 3
Total variable costs per unit $25
Fixed costs per month:
Fixed manufacturing overhead $240,000
Fixed selling and administrative 180,000
Total fixed cost per month $420,000
The product sells for $40 per unit. Production and sales data for May and June, the first two
months of operations, are as follows:
Units Produced Units Sold
May 30,000 26,000
June 30,000 34,000
Income statements prepared by the accounting department, using absorption costing, are presented below:
May June
Sales $1,040,000 $1,360,000
Cost of goods sold 780,000 1,020,000
Gross margin 260,000 340,000
Selling and administrative expenses 258,000 282,000
Net operating income $ 2,000 $ 58,000
Required:
1. Determine the unit product cost under:
a. Absorption costing.
b. Variable costing.
2. Prepare contribution format variable costing income statements for May and June.
3. Reconcile the variable costing and absorption costing net operating incomes.

Q. 1 (CSS – 2016, Paper # 2, Part – II, Q. # 7(b)) (10 Marks)

Fedder manufacturing company provides the following information concerning its 2015 operations:
Number of units produced 45,000
Selling price per unit (Rs.) 30
Variable costs per unit (Rs.):
Direct labour 6
Direct material 7
Manufacturing overhead 3
Selling and administrative 2
Fixed costs (Rs.):
Manufacturing overhead 180,000
Selling and administrative 116,000
Units sold 33,000 Units
There was no beginning inventory for the firm.

Required:
2|Page By: Asif Masood Adam’s Learning Centre, Lahore
0321 9842495 0333 4169258
CSS Accounting & Auditing Marginal & Absorption Costing
Prepare an absorption costing income statement for Fedder manufacturing company.
Prepare a variable costing income statement for Fedder manufacturing company.
Reconcile the difference in profits under the two income statements.

3|Page By: Asif Masood Adam’s Learning Centre, Lahore

0321 9842495 0333 4169258