IGNOU BCOE-142 June 2022 Previous Year Question Paper

Q1.(a) What do you mean by Budgeting ? What are its advantages ? 347

(b) Discuss the process of performance budgeting.

Q2.Describe the external factors influencing pricing decisions.

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

(a) Residual Income

(b) Throughput Costing

(c) Human Resources Accounting

(d) Management Accounting

(e) Provisions

(f) Cost Reduction

Q4.(a) The following Balance Sheet pertains to X Company Ltd. as at 31-03-2020 : You are required to calculate

(i) Current Ratio, and

(ii) Quick Ratio. 747 Balance Sheet as at 31.03.2020 Liabilities Amount Assets Amount Share Capital 20,000 | Buildings 20,000 Reserves & Plant & Surplus 16,000 | Machinery 10,000 Debentures 10,000 | Stock 8,000 Sundry Sundry Creditors 11,000 | Debtors 7,000 Bank Prepaid Overdraft 1,000 | Expenses 2,000 Bills Payable 2,000 | Securities 12,000 Provision for Taxes 1,000 | Bank Balance 2,000 Outstanding Expenses 1,000 | Cash in Hand 1,000

(b) Write any five limitations of Ratio Analysis.

Q5.Draw up a flexible budget for overhead expenses on the basis of the following data and determine the overhead rate at 70%, 80%, and 90% plant capacity. 20 Particulars At 80% capacity Variable overheads : = Indirect Labour 12,000 Stores including Spares 4,000 Semi-variable overheads : Power (30% fixed, 70% variable) 20,000 Repairs (60% fixed, 40% variable) 2,000 Fixed overheads : Depreciation 11,000 Insurance 3,000 Salaries 10,000 Total Overheads 62,000 Estimated direct labour hours = 1,24,000 hours

Q6.(a) From the following information, calculate: 5+5 @ Material Price Variance, and Gi) Material Usage Variance. For making 10 kg of GEMCO products, the standard material requirement is : Material | Quantity | Rate per kg During April 2020, 1000 kg of GEMCO products were produced. The actual consumption of material was as under : Material | Quantity | Rate per kg

(b) Explain the advantages of Standard Costing.

Q7.(a) You are given the following data : Fixed cost = 4,000 Break-even point = 10,000 Calculate :

(i) Profit when sales are = 20,000, and

(ii) New break-even point if selling price is reduced by 20%. 5+10

(b) From the following data, calculate the actual sales : 5 Fixed Cost = 8,000 Profit Earned = 2,000 Break-even Sales = 40,0

(00)

Q8.(a) Z Ltd. company produces and markets ball point pens. Due to competition, the company proposes to reduce the selling price by 10%. Examine the effects of reduction in selling price, for the following available information :

(i) Present sales of 3,000 units 3,00,000 Gi) Variable costs 1,80,000 Gii) Fixed costs 70,000

(iv) Net profit 50,000 Indicate the number of units to be sold to maintain the same profit. 10

(b) Discuss the steps involved in Activity-Based Costing with suitable examples. 10 BCOE-142 6 BCOE-142 8 BCOE-142 10 "600 |