MCO-05 Solved Assignment 2020-21 | English Medium | Accounting for Managerial Decisions

Description

University :	IGNOU
Program :	MCOM (2nd Year)
Course Code :	MCO-5
Course Title :	Accounting for Managerial Decisions
Medium :	English
Max Marks :	100
Weightage :	30%
Session :	July 2020 and January 2021 (2020-21)
Last Date of Submission :	15th March, 2021 (for July 2020 session) 15th September, 2021 (for January 2021 session)
Solution Type :	Softcopy (PDF File)

TUTOR MARKED ASSIGNMENT

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Course Code	: MCO-05
Course Title	: Accounting for Managerial Decisions
Assignment Code	: MCO-05/TMA/2020-2021
Coverage	: All Blocks

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Maximum marks: 100

Attempt all the questions.

1. (a) The elements of cost can be presented in the form of a statement called ‘Cost Sheet’. Comment. Prepare a proforma of cost sheet showing the important components.
   (b) Briefly explain the issues addressed under Strategic Cost Management.
2. (a) Differentiate between fixed and flexible budgeting.
   (b) Define budgeting and budgetary control. What are the essentials of establishment of Budgeting system?
3. Prepare a Cash Flow statement from the following balance sheet of ABC Sugars Ltd.
   

   Liabilities	2018	2019	Assets	2018	2019
   Share capital General reserve P&L a/c 12% debentures 14% mortgage loan Creditors	4,00,000 1,25,000 1,10,000 2,00,000 1,00,000 80,000	5,00,000 1,35,000 1,90,000 1,50,000 1,60,000 95,000	Machinery Long term investments Stock Debtors Cash Bank Share issue expenses	5,00,000 70,000 2,10,000 1,40,000 20,000 50,000 25,000	7,00,000 56,000 2,80,000 1,14,000 40,000 20,000 20,000
   	10,15,000	12,30,000		10,15,000	12,30,000

   Total interest paid during the year amounted to Rs. 37,800

4. (a) What do you understand by Standard Costing? Explain the advantages and limitations of Standard Costing.
   (b) What is Break Even analysis? Explain the different methods of computing break-even point?
5. Calculate the following ratios from the details given below:
   a) Current ratio
   b) Quick ratio
   c) Operating ratio
   d) Gross profit ratio
   Details:
   Current assets: Rs.70,000
   Net working capital: Rs. 30,000
   Inventories: Rs. 30,000
   Sales: Rs. 1,40,000
   Cost of goods sold: Rs. 68,000