IGNOU BCOE-142 December 2022 Previous Year Question Paper

Q1.Discuss the objectives and advantages of management accounting.

Q2.(a) What do you mean by Activity-Based Costing ? What are its advantages ? Explain. 347

(b) Distinguish between cost control and cost reduction.

Q3.Write short notes on any four of the following : 4x5=20

(a) Kaizen Costing

(b) Marginal Costing

(c) Secret Reserve

(d) Zero-Based Budgeting

(e) Labour Rate Variance

(f) Activity-Based Costing

Q4.(a) Calculate profit available to equity shareholders, presuming tax rate of 40% from the following information. 15 Particulars = (000) PBIT (Profit before interest and taxes) 5,782 Depreciation charged as per books (Revaluation) 182 Depreciation as per Section 205 360 10% preference share capital 1,500 Past accumulated losses 1,200 Transfer to Debenture Redemption Fund 150 Transfer to General Reserve 600 Unabsorbed Depreciation (Section 205) 560 Interest on Loans 252

(b) What is Inventory Turnover Ratio ?

Q5.From the following data, prepare a cash budget according to Adjusted Profit and Loss method. 20 Balance Sheet as on 31.12.2020 ५ 2 yey Amount Amount Liabilities

(2) Assets

(2) Share Capital 1,00,000| Premises 50,000 General Reserve 20,000] Machinery 25,000 Profit and Loss A/c 10,000) Debtors 40,000 Creditors 50,000 | Closing Stock 20,000 Bills Payable 10,000) Bills Receivable 5,000 Prepaid Outstanding Rent 2,000| Commission 1,000 Bank 51,000 Trading and Profit and Loss Account for the Year Ending 31.12.2020 Dr. — Cr. \Particulars Amount ‘Particulars Amount To Opening Stock 20,000|By Sales 2,00,000) To Purchases 1,50,000/By Closing Stock} 15,000 ITo Octroi 2,000) 'To Gross Profit c/d 43,0

(00)

Q6.15,000| 2,15,000 To Interest 3,000|/By Gross Profit 43,000 To Salaries 6,000 By Sundry 5,000 eceipts 'To Depreciation (10% on Premises + Machinery) 7,500 ITo Rent 6,000 [Less : Outstanding (Previous year) 2,0

(00)

Q7.000 |Add : Outstanding (Current year) 1,000 5,000 [To Commission 3,000 |Add: Prepaid 1,000) 4,000 [To Office Expenses 2,000 To Advertising Exp. 1,000 To Net Profit 19,5

(00)

Q8.000) 48,000) 10 Dividends 8,000/By Balance of To Addition to Profit (from last Reserves 4,000|year) 10,000| ITo Balance c/d 17,500|By Net Profit c/d 19,500)

Q9.500 29,500 BCOE-142 4 Closing Balances of Certain Items : Share Capital = 1,20,000; 10% Debentures = 30,000; Creditors = 40,000; Debtors = 60,000; Bills Payable ¥ 12,000; Bills Receivables = 4,000; Furniture = 15,000 and Plant = 50,000. (Both these assets were purchased at the end of the year).

Q10.(a) A company produces a product by using three different components of X, Y and Z. Their cost information for product and purchase price are as follows : . xX Y Z Particulars z z z Only one of the components can be produced in the factory and rest two components are to be bought from outside. Select the components which should be bought from outside. 10

(b) Distinguish between Standard Costing and Budgeting.

Q11.(a) From the following information, calculate : 5+5+5 @ Fixed Overhead Variance Gi) Expenditure Variance Gii) Fixed Overhead Efficiency Variance Details Budget Actual Production (units) 10,000 10,400 Fixed overheads (=) 20,000 20,000 Labour hours 20,000 20,100

(b) Calculate Break-Even Point in units, from the following data : 5 Selling Price = = 3 per unit Variable Cost = = 2 per unit Fixed Cost = = 90,0

(00)

Q12.(a) The cost information available is as follows : Sales 1,00,000 units Selling Price = 10 per unit Variable Cost = 6 per unit Fixed Cost = 60,000 per annum Compute the following : 545

(i) Required sales volume in units to earn a profit of = 40,000, and Gi) Sales volume in units to earn a profit of = 2 per unit.

(b) Discuss the Liquidity Analysis Ratios. 10 BCOE-142 6 BCOE-142 8 wer Dr. Cr.

Q13.15,000 2,15,000

Q14.000

Q15.000 48,000

Q16.500 29,500 BCOE-142 10 rs |