IGNOU MCO-05 June 2016 Previous Year Question Paper

Q1.What is meant by Accounting Standard ? What is the legal status of accounting standards in India ?

Q2.Discuss the utility and significance of financial 20 statements to various parties interested in the business concern.

Q3.What are the different techniques of financial analysis ? Explain any two of them.

Q4.What do you mean by the term 'Budgetary control' ? What are its advantages ? Also explain the statement that, "A budget is a means and Budgetary control is the end result". 5+7+8

Q5.Define Responsibility Accounting. Discuss its salient features.

Q6."The technique of Marginal costing is more used 20 to provide a reasonable and sound basis for managerial decisions than to arrive at product cost". Explain this statement with examples.

Q7.Following is the summary of cash transactions extracted from the books of X Ltd. 7+7+6 Balance as on 35,000 Payments to 20,47,000 1-7-2014 Suppliers Receipts from 27,83,000 Payments for 2,30,000 Customers Fixed assets Issue of shares 3,00,000 Payments for 1,15,000 Overheads Sale of fixed 1,28,000 Salaries 69,000 Assets Income tax 2,43,000

Q8.000 Dividends paid Repayment of 2,50,000 Bank Loan Balance as on 30-6-2015 2,12,000. Prepare a Cash Flow Statement of the company for the period ended 30th June 2015.

Q9.A manufacturing concern which has adopted standard costing furnishes the following information : 6+7+7 Standard : Materials for 70 kg of Finished 100 kg. Products MCO-05 2 Price of Materials Z 1 per kg. Actual : Output 2,10,000 kg. Materials used 2,80,000 kg. Cost of materials Z 2,52,000 Calculate various variances in respect of Material Cost.

Q10.A manufacturing concern has the production capacity of 20,000 units per annum. The expenses budgeted for 10,000 units for a period are listed below 10+10 Per unit (Z) Materials 40 Wages (50% Variable) 20 Manufacturing Expenses (40% Fixed) 10 Administrative Expenses (All Fixed) 5 Selling & Distribution Exp. (60% Fixed) 5 Total cost 80 Profit 20 Selling Price 100 Prepare a flexible budget to show 70% and 100% levels of activity. It is expected that the present unit selling price will remain constant upto 60% activity beyond which a 5% reduction is contemplated upto 90% activity level. Above 90% 1 a 2-2- % reduction in original price is contemplated for every 5% increase in volume. MCO-05 3 Tuttail.-05 enruN-#.4 tritich)71 '3Ertru TRIAIT 2016 At3ft.-05 : 3r4E147 fTrizif * f n (s)tgichi Wig :3 Eft 37~ "cT 3i :100 wr 70%

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