IGNOU MCO-05 June 2023 Previous Year Question Paper

Q1.What are ‘Fixed Budgets’ ? How do they differ from ‘Flexible Budgets’ ? Elaborate the steps involved in making a sound budgeting system. 5+5+10

Q2.Discuss the emerging role of accounting as a part of information systems. Differentiate between cost accounting and management accounting. 10+10 [ 2 ]

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

(a) Accounting standards

(b) Cost sheet

Q4.Atul Ltd. submits you the following information : 9% Preference shares of INR 10 each 9,00,000 Equity shares of INR 10 each 24,00,000 Total 33,00,000 Profit (after tax) @ 60% 8,10,000 Depreciation 1,80,000 Equity Dividend paid 20% Market price of equity shares INR 40. Compute the following ratios :

(a) Dividend yield on equity shares

(b) Earning per share

(c) Price earning ratio

(d) As a financial accountant, share your views on the outcome of above ratios for the profitability of the company. 5, 5, 5,

Q5.Differentiate between the following : 10+10

(a) Production budget and Material budget

(b) Activity based costing and Traditional costing approach.

Q6.(a) A television manufacture r finds that while it costs ` 150 per unit to make component XY-006. The same is available in the market at ` 120 each. Continuous supply is also fully assured. The breakdown of cost is : (`) per unit Material 60 Labour 40 Variable expenses 10 Fixed cost 40 Total 150

(i) Should the company make it or buy it ? 5

(ii) What would be your deci sion if the supplier offered component at ` 105 per unit ? 5

(b) From the following data, calculate : 10

(i) Break-even point

(ii) Margin of safety

(iii) Profit-Volume ratio Sales 10,00,000 Total variable cost 6,00,000 Profit 1,00,000

Q7.The standard mix of Product X is as follows : Material Qty. (kg) Price/kg (`) A 50 5.00 B 20 4.00 C 30 10.00 The standard loss in production is 10% of output. There is no scrap value. Actual production for a month was 7240 kgs of ‘X’ from 80 mixes. Actual monthly consumption is as follows : Material Qty. (kg) Price/kg (`) A 4160 5.50 B 1680 3.75 C 2560 9.50 Calculate : 5×4=20

(a) Material Cost Variance

(b) Material Price Variance

(c) Material Mix Variance

(d) Material Yield Variance

Q8.(a) Explain the application of marginal costing in managerial decision-making. 10

(b) ‘The p rofit is the product of the P/V r atio and the margin of safety’. Comment.

Q9.Discuss the concept of ‘c ost’. Briefly explain various costs, according to areas of responsibilities citing suitable example. 20 wa 1,80,000 5+5+5+5 Poe | A 50 5.00 B 20 4.00 ० 30 10.00