IGNOU MCO-05 June 2019 Previous Year Question Paper

Q1.(a) Discuss the role of Management Accountant in a corporate entity. 10

(b) Classify costs on the basis of controllability.

Q2.What are the financial statements ? How far are they useful for decision-making purposes ?

Q3.Discuss the limitations of financial statements. 5+8+7=20

Q4.During the year 2017, Ram and Co. made sales of 4,00,000. Its gross profit ratio is 25% and net profit ratio is 10%. The stock turnover ratio was 10 times. Calculate

(a) Gross Profit,

(b) Net Profit,

(c) Cost of Goods Sold and

(d) Operating Expenses. 5+5+5+5=20

Q5.What is a cash flow statement ? Explain the techniques of preparing a cash flow statement.

Q6.How does cash flow analysis help the management in decision-making ? 5+8+7=20

Q7.(a) Define zero based budgeting. Explain its advantages and disadvantages. 10

(b) "Performance budgeting requires preparation of periodic performance reports." Explain.

Q8.Define Responsibility Accounting. What are the uses of responsibility accounting ? Also discuss the essentials of success of responsibility accounting. 5+7+8=20

Q9.The following figures relate to the quantity of material required for the production of a product : Standard Actual Quantity (kg) Price (fl Amount Quantity (kg) Price Amount A 120 20 2,400 160 24 3,840 B 180 40 7,200 120 50 6,000 300 9,600 280 9,840 Compute :

(a) Material Cost Variance

(b) Material Price Variance

(c) Material Usage Variance

(d) Material Mix Variance 5+5+5+5=20

Q10.(a) What are the limitations of conventional financial accounting ? 5

(b) Write short notes on any three of the following : 3x5=15

(i) Environmental Accounting

(ii) Activity Based Costing

(iii) Human Resources Accounting

(iv) Profit Volume Ratio (PV Ratio)

Q11.Shyam Ltd. furnishes the following data : Particulars Period I Period II Sales (T) 45,000 50,000 Total Cost (T) 40,000 43,000 Assuming that there is no change in price and variable costs and fixed expenses are incurred equally in the two periods, calculate the following : 5x4=20

(a) Profit Volume Ratio

(b) Fixed Expenses

(c) Break-Even Point

(d) Sales required to earn profit of 10,000

(e) Profit when sale is 80,000 MCO-05 4 71:1.*.311.-05 a 1 ,7ei tict) Tit 1764 /TN* trftWIT , 2019 :Trite 1.AU <4.* -Ng caul la~ + twig :3 WO' 377T/W-ffiT 3*: 100 *F. : *-e qt. w -4y .ern Of4q. / ft 3i.N7 3 OHM ff /

Q12.ATTfird 1,f . (entity) 74tT tsiichik ItrwrT oaf0=A -RI 10 31TETTi ovici aifTcrtur rr-4iI

Q13.Wrzt 14-4-k-uff vErr rftuizR ztrzhrft ? fdrflei 4:Ituil *1- Alir311 *trA-R 5+8+7=20

Q19.Ofd (conventional) WM cat5Ict.1 mfr (TO -PHR-112grr 4 A1--*- 1 e7 Tifki7r fzwrNr fAR : 3x5=15

(i) 14e4c1tuf (,)tlicfri

(ii) bI4 ( 5tmicnolq) aptreita. opid Trr-td AmxT-4

(iv) .11-1 Tftgrfut 3971-d (PV Ratio)

Q20."FITI:F furl:ft 4 -1=41P-eRtra. 341 mqpi rchkr, : aretz I aTa-RT II cRui fff--*-4 (T) 45,000 50,000

Q21.000 43,000 To cii id 717 Hi-■ Tic( AT trft--4-41 ovid. 4 Trit-447 R M PR (fixed) &Pl. 31i 3T -4W 4 cRiqk PiHroriad 1 =rum tri* : 5x4=20 rlTaT 1:101T0T arTITff (PV Ratio)

(ii) -P4k (Pleic °ale( (TT) kvi (BEP) (IT) 10,000 aTrIff c al-raFw facer zit facer 80,000 t MCO-05 8 21,000