IGNOU BCOE-142 June 2023 Previous Year Question Paper

Q1.Define Management Accounting. Explain the techniques of Management Accounting. What are the roles performed by Management Accounting in an organisation ?

Q2.(a) What is the meaning of Reserves ? Distinguish between provision and reserves. 3+7

(b) What are the techniques of cost management ?

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

(a) Trend Analysis

(b) Performance Budgeting

(c) Direct Material Usage Variance

(d) Cost Volume Profit Analysis

(e) Responsibility Accounting

(f) Environmental Accounting

Q4.(a) From the following information, compute shareholder's funds : 15 11% Preference Share Capital 3,00,000 Equity Share Capital 7,00,000 Reserves (Revenue) 1,50,000 Capital Reserves 75,000 Securities Premium 1,25,000 9% Debentures 5,00,000 Current Liabilities 1,50,0

(00)

Q5.00,000 Goodwill 2,50,000 Fixed Assets 10,00,000 Investments 2,50,000 Current Assets 3,75,000 Preliminary Expenses 80,000 Discount on Debentures 45,0

(00)

Q6.00,000 Fixed assets include = 40,000 for patents which are considered useless and freehold premises which is valued = 75,000 more than its book value. Goodwill is to be valued at & 2,20,000.

(b) What is Interest Coverage Ratio ?

Q7.A company producing electronic watches, estimate the following factory overhead costs for producing 5000 units : 20 Indirect Materials 16,000 Indirect Labour 30,000 Inspection costs 16,000 Heat, Light and Power 8,000 Expandable tools 8,000 Supervision costs 8,000 Equipment Depreciation 4,000 Factory Rent 4,000 Indirect labour, indirect material and expendable tools are entirely variable. Heat, light and power and inspection costs are variable to the extent of 50%, 40% respectively. Other costs are fixed costs a month. Prepare a flexible budget for production of 4000 and 6000 units per month. Also find out the average factory overheads per unit for these two production levels.

Q8.(a) The following information is available from the records of a company : 10 Standard Actual Wages Wages Skilled | 90 workers 80 workers @2perhr. | @% 2.50 per hour Unskilled | 60 workers 70 workers @%3perhr. | @% 2 per hour Budgeted Actual hours: 1000 | hours : 900 You are required to calculate the following : @ Labour Cost Variance Gi) Labour Rate Variance Gii) Labour Efficiency Variance

(iv) Labour Mix Variance

(v) Revised Labour Efficiency Variance

(b) What are the methods of classification of Material Variances ? Explain.

Q9.(a) ABC Ltd, a multiproduct company, furnishes the following data : 15 Particulars Period I Period II Sales (₹) 45,000 50,000 Assuming that there is no change in price and variable costs. Fixed costs are incurred equally in the two periods. Calculate the following :

(6) Profit-Volume ratio Gi) Fixed expenses Gi) Break-even point

(iv) Sales required to earn a profit of =

Q10.000

(v) Profit when sales is = 80,000

(b) Given: 5 Production = 100000 units Sales 90000 units @ Z 3 per unit Variable manufacturing costs = % 2 per unit Fixed overheads = ¢ 50,000 Selling and distribution costs = = 10,000 of which % 4,000 is variable. Prepare the income statement under marginal costing.

Q11.(a) With the help of the following data, a manufacturer seeks your advice whether to buy an item from the market or to produce it at the floor of the factory : 10 Present Proposed Particulars (Buy) (Make) Sales 16,00,000 16,00,000 Costs : Variable 11,20,000 10,24,000 Fixed 3,60,000 4,00,000 Capital required 8,00,000 9,00,000 Advise the management.

(b) Describe the factors influencing pricing decisions. 10 ROTA OR ET 45,0

(00)

Q12.1. 0. BCOE-142 9,9

(10)