IGNOU MCO-05 December 2023 Previous Year Question Paper

Q1.(a) Discuss the emerging role of the management accountant in the corporate decision-making. 10

(b) Briefly explain the financial accounting process citing suitable example. 10 [ 2 ]

Q2.Briefly discuss cash flow statements . How are they prepared ? Explain their importance to business.

Q3.Write short notes on the following : 10+10

(a) Accounting concepts

(b) Margin of safety

Q4.(a) Ashok Manufacturing Company Ltd. manufactures two products X and Y. In making both these products, same material is used. The supply of material is limited. The data corresponding to these two products are as follows : Products X Y Selling Price/unit 300 200 Variable Cost/unit 200 120 Per unit material consumption (in kg) 8 5 Assign profitability ranks to the product X and Y keeping in view the limited availability of raw material. 10 [ 3 ] MCO–05

(b) Given : 10 Selling Price 15 Variable Cost/unit 9 Fixed cost 60,000 Find out :

(i) P/V (Profit and Volume Ratio) and BEP (Break-Even Point)

(ii) If the company sells 12000 units , then its profit and margin of safety.

Q5.Differentiate between the following : 10+10

(a) Capital e xpenditure budget and M aster budget

(b) Liquidity analysis rat io and Profitability analysis ratio

Q6.What is responsibility accounting ? Explain its applications. How does it differ from conventional cost accounting ? 20 [ 4 ]

Q7.Prepare income statements using absorption costing method and marginal costing method using the following information : Opening Stock 2000 units valued at ` 1,60,000 including variable cost of ` 60/unit Fixed cost ` 1,50,000 Variable cost ` 70 per unit Production 10000 units Sales 9000 units @ ` 100 per unit Stock is valued on the basis of FIFO method.

Q8.(a) Define variance. What are the methods of classification of variances ? Explain. 10

(b) Write a note on methods of Transfer Pricing.

Q9.The ABC Company has the following details : Liabilities ` Equity Share capital 3,00,000 Pref. Share capital 50,000 Reserves 1,65,000 12% Govt. Loan 2,60,000 Current Liabilities 2,40,000 [ 5 ] MCO–05 Assets ` Land 2,00,000 Plant and Machinery 3,00,000 Inventory 2,00,000 Trade Receivables 1,00,000 Cash and Cash equivalents 1,60,000 Preliminary Expenses 5,000 Profit and Loss A/c (Accumulated Loss) 50,000 Evaluate :

(a) Debt Equity Ratio

(b) Debt to Total Fund Ratio

(c) Debt to Total Assets Ratio Also, comment on the out comes of the above ratios. 5, 5, 5, 5 , aaa 1,65,000 tag wd tas TI 1,60,000 [ 11 ]