IGNOU MCO-05 December 2017 Previous Year Question Paper

Q1.Comment on the statement with suitable example. Distinguish between :

(i) Product cost and period cost 5

(ii) Controllable cost and uncontrollable 5 cost

Q2.Write short notes on any four of the following.

(a) Proprietors' funds 5, 5, 5, 5

(b) Cash profit

(c) Unit costing

(d) Sunk costs

(e) Process costing

(f) Break even point

Q3.(a) Differentiate between Fixed Budget and 5 Flexible Budget.

(b) Explain the steps involved in making a 15 sound budgeting system.

Q4.Informations regarding Sanjeev Ltd. are as follows : 4, 4, 4, 4, 4 Sales 6,00,000 Less : Variable costs 4,50,000 contribution 1,50,000 Less : Fixed costs 90,000 Profit 60,000 You are required to calculate :

(a) Break-even point

(b) P/V Ratio

(c) Profit on sales of 9,00,000

(d) Sales required to each a profit of 90,000

(e) Margin of safety

Q5.Write short notes on any four of the following : 4x5

(a) Human Resource Accounting

(b) Environment Accounting

(c) Cash flow from operating activities

(d) Trend analysis

(e) Responsibility Accounting

(f) Standard Costing

Q6.Information are as follows : 5x4 Standard price of material per kg 5 Actual price of material per kg 4 Standard quantity of material required to produce 1 unit of output : 15 kg Actual quantity of Material used to produce 1 unit of output : 20 kg Actual output : 10,000 units MCO-005 2 Calculate the following :

(a) Material yield variance

(b) Material mix variance

(c) Material price variance

(d) Material usage variance

(e) Material cost variance

Q7.What is meant by reporting to management ?

Q8.What are the objectives of Reporting ? Discuss various types of Reports. 3+5+12

Q9.Prepare a Cash Budget for the month of April, 20 May and June from the following informations : Particulars Actual Budgeted Jan. Feb. March April May June Sales 8,000 7,000 6,000 8,500 9,000 8,000 Purchases 4,000 3,000 2,500 3,000 2,500 2,000 Wages 2,000 2,000 1000 1,500 1000 1000 Expenses 500 600 500 800 600 400 Additional informations are as follows :

(a) 60% of sales and purchases are for cash.

(b) Suppliers are paid after one month and credit sales one collected after two months.

(c) Wages are paid weekly and the expenses are paid after one month.

(d) Rent Z 200 pm. notincluded in expenses.

(e) Income Tax payable in May is estimated to be 250.

(f) Cash Balance on 1st April was 1500.

Q10.(a) Given the following information : 5, 5 Credit Sales of the year 9,00,000 Debtors 2,00,000 Bills Receivable 1,60,000 Calculate :

(i) Debtors Turnover Ratio

(ii) Average Collection Period

(b) From the following details, Calculate 10 Operating Profit Ratios for 2014 and 2015. 2014 2015 Sales 1,20,000 1,00,000 Less : Cost of goods sold 42,000 36,000 Gross Profit 78,000 64,000 Less : Interest on Debentures 2,000 4,000 Net Profit 76,000 60,000 MCO-005 4 PT 70%

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Q13.T311 a*R, -R-'4ff 14TVTT tE*7 20 Particulars Actual Budgeted Jan. Feb. March April May June