IGNOU MCO-05 December 2020 Previous Year Question Paper

Q1.Explain diff erent types of Accou nting concepts which guide the a ccountant at the recording stage.

Q2.Explain the nature of cost. Classify the costs according to areas of responsibility. 10+10=20

Q3.Describe the principal ratios which you consider significant while interpreting the published accounts of company and explain the inferences which may be drawn from their use.

Q4.Explain the concept of Budgetary Control. How does it operate as a tool of management control ? 8+12=20

Q5.(a) What is Performance Budgeting ? Explain its objectives by giving suitable examples. 10

(b) M.N. Ltd. wishes to prepare a production budget in respect of three products A, B and C, the sales forecast for which is 83,200 units,

Q6.840 units and 88,400 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 : Inventory Schedule Products A B C 1-1-2017 (units) 16,000 12,000 20,000 31-12-2017 (units) 20,800 11,160 27,600 You are require d to draw up the Production Budget.

Q7.From the following Balance Sheet of P.Q. Ltd. you are required to prepare a Schedule of Changes in Working Capital and a Statement of Flow of Funds : 10+10=20 31-12-2016 31-12-2017 Building 50,000 50,000 Plant & Machinery 24,000 34,000 Stock 9,000 7,000 Debtors 16,500 19,500 Cash at Bank 4,000 9,000

Q8.03,500 1,19,500 Capital 80,000 85,000 Profit & Loss Account 14,500 24,500 Creditors 9,000 5,000 Mortgage – 5,000

Q10.Standard cost of product is : 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.

Q11."The effect of increase in sales price is to increase the P/V ratio to bring down the break-even point and to widen the margin of safety." Discuss.

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