IGNOU BCOE-142 December 2024 Previous Year Question Paper

Q1.How is Management Accounting different from Cost Accounting ? Explain the functions performed by Management Accounting.

Q2.(a) What do you mean by cost reduction ? Differentiate between cost control and cost reduction. 3+7

(b) You are given the following information: 10 ¢ 7000) PBIT 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 Unabsorbed depreciation as per Section 205 560 Interest on loans and advances 252 Transfer to general reserves 600 Calculate profit available for equity shareholders, presuming tax rate of 40%.

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

(a) Dupont Model of Financial Analysis

(b) Sales Budget

(c) Material Price Variance

(d) Profit-Volume Ratio

(e) Inflation Accounting

(f) Social Accounting

Q4.(a) From the following information, calculate gross profit, operating profit, PBIT, PBT, and PAT: 15 (in 7000) Sales (Gross) 2,075 Return inwards 15 Return outwards 60 Rent Received 25 Interest and Dividend on investments 35 Direct Expenses (Manufacturing) 375 Selling and Distribution Expenses 75 Office and Administrative Expenses 150 memo | less returns 850 Inventories (1-4-2022) 145 Inventories (31-3-2023) 165

(b) The following are the particulars extracted from the Balance Sheet of XYZ Ltd. on 31-03-2021. Calculate capital gearing ratio : 5 Equity share capital 1,00,000 9% Preference share capital 60,000 Reserves and Surplus 20,000 Long-term loans 1,20,0

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Q5.(a) Explain in brief different types of budgets. 10

(b) A company produces two products ‘A’ and ‘B’ and budget at 70% level of activity for the year 2023. It gives the following information : 10 Raw material cost per unit 15 7 Direct wages per unit 8 6 Variable overhead per unit 4 3 Fixed overhead per unit 12 9 Selling price per unit 38 27 Production and Sales (units) 12000 | 18000 The managing director proposed to decrease sales to 8000 units and 12000 units of Products A and B respectively and increasing the selling price to * 40 in the case of Product A and * 30 in the case of Product B. You are required to present the overall profitability under the original budget and revised budget after taking the above proposal into consideration.

Q6.(a) Write a detailed note explaining the advantages and limitations of standard costing. 10

(b) The following figures relate to the quantity of material required for the production of product : 10 Standard Actual Quantity | Price | Amount | Quantity | Price | Amount A 60 10 600 80 12 960 Compute : G@) Material Cost Variance Gi) Material Price Variance

(ii) Material Usage Variance

(iv) Material Mix Variance

Q7.(a) Explain the managerial uses of marginal costing. 10

(b) State which of the following sales mix you would recommend to the management: 10 Elements of Cost xX) YQ) Sale Price 200 150 mame] 2 Material 100 80 Direct Labour 40 30 Variable Overheads 20 20 Fixed overheads : * 1,00,000 Alternative sales mix : @ 2000 units of X and 2000 units of Y

(1) 3000 units of X and 1000 units of Y Gii) 4000 units of X and Nil units of Y

Q8.(a) Sunrise Company has three divisions A, B and C. The investment in these divisions amounted to * 2,00,000; * 6,00,000 and * 4,00,000 respectively. The profits in these divisions were * 50,000; * 60,000 and * 80,000 respectively. The cost of capital is 10 percent. From the above data, comment the performance of the three divisions. 10

(b) Define Kaizen Costing. What are the features and approaches to Kaizen Costing ? 10 8+7 02000 (PBIT) 5,782 wy (1-4-2022) 145 ry (31-3-2023) 165

(4) 31-3-2021 # XYZ Ltd. & fag a frat AQ 0 15 7 4 3 हि 12000 |

Q9.60 10 | 600 80 12 | 960 Pe ele [|] * 2,00,000; * 6,00,000 2M * 4,00,000 #1 #

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