IGNOU MCO-05 December 2016 Previous Year Question Paper

Q1.Define Accounting. Describe principal objectives 8+12 of Accounting.

Q2.Explain the concept of cost and its nature.

Q3.Distinguish between direct costs and indirect costs. 5+5+10

Q4.What is Fund Flow Statement ? Examine its uses and significance for management.

Q5.Define 'budget' and 'budgeting'. Discuss its utility and limitations. 6+7+7

Q6.Classify the budgets on the basis of time, function and flexibility. 6+7+7

Q7.What do you understand by Cost Volume Profit relationship ? Why is this relationship important in managerial decision making ?

Q8.The comparative figures of A Ltd. and B Ltd. are given below : 5+5+5+5 A Ltd. B Ltd. Total Assets 4,00,000 6,00,000 Total Liabilities 80,000 2, 00,000 Proprietor's Fund 3,20,000 4,00,000 Calculate the Debt Equity Ratio for each Company and Comment.

Q9.Standard cost of product is : 5x4=20 Time : 6 hours per unit Rate : 4 per hour Actual Cost : Production 1,500 units Hours taken 7,600 Idle Time (Hours) 400 Total Hours 8,000 Total Labour cost amounted to 40,000. Calculate Labour Variance.

Q10.X.Co. wishes to prepare a production budget in respect of three products A, B and C, the sales forecast for which is 83,200 units 72,840 units and

Q11.400 units respectively. The estimated requirement of inventory both at the beginning and at the end of the budget period are shown in the following schedule : 7+7+6 Inventory Schedule Products 1st January (units) 16,000 12,000 20,000 31st December 20,800 11,160 27,600 You are requested to draw up the production Budget. MCO-005 2 MCO-005 3 z z