No.

of Printed Pages : 8 MCO -005 I

MASTER OF COMMERCE
CT) Term-End Examination
CD December, 2017
MC0-005 : ACCOUNTING FOR MANAGERIAL
DECISIONS
Time : 3 hours Maximum Marks : 100
Weightage 70%
Note : Attempt any five questions. All questions carry equal
marks.

"Fixed costs are also variable. The more you 10

produce, the less they become fixed".
Comment on the statement with suitable
example.
Distinguish between :
(i) Product cost and period cost 5
(ii) Controllable cost and uncontrollable 5
cost

2. Write short notes on any four of the following.

(a) Proprietors' funds 5, 5, 5, 5
(b) Cash profit
(c) Unit costing
(d) Sunk costs
(e) Process costing
(f) Break even point

3. (a) Differentiate between Fixed Budget and 5

Flexible Budget.
(b) Explain the steps involved in making a 15
sound budgeting system.

MCO-005 1 P.T.O.
4. Informations regarding Sanjeev Ltd. are as
follows : 4, 4, 4, 4, 4

Sales 6,00,000
Less : Variable costs 4,50,000
contribution 1,50,000
Less : Fixed costs 90,000
Profit 60,000

You are required to calculate :

(a) Break-even point
(b) P/V Ratio
(c) Profit on sales of 9,00,000
(d) Sales required to each a profit of 90,000
(e) Margin of safety

5. Write short notes on any four of the following : 4x5

(a) Human Resource Accounting
(b) Environment Accounting
(c) Cash flow from operating activities
(d) Trend analysis
(e) Responsibility Accounting
(f) Standard Costing

6. Information are as follows : 5x4

Standard price of material per kg 5
Actual price of material per kg 4
Standard quantity of material required to produce
1 unit of output : 15 kg
Actual quantity of Material used to produce 1 unit
of output : 20 kg
Actual output : 10,000 units

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 Calculate the following :
(a) Material yield variance
(b) Material mix variance
(c) Material price variance
(d) Material usage variance
(e) Material cost variance

7. What is meant by reporting to management ?

What are the objectives of Reporting ? Discuss
various types of Reports. 3+5+12

8. Prepare a Cash Budget for the month of April, 20

May and June from the following informations :

Actual Budgeted
Particulars
Jan. Feb. March April May June
Sales 8,000 7,000 6,000 8,500 9,000 8,000
Purchases 4,000 3,000 2,500 3,000 2,500 2,000
Wages 2,000 2,000 1000 1,500 1000 1000
Expenses 500 600 500 800 600 400
Additional informations are as follows :
(a) 60% of sales and purchases are for cash.
(b) Suppliers are paid after one month and
credit sales one collected after two months.
(c) Wages are paid weekly and the expenses
are paid after one month.
(d) Rent Z 200 pm. notincluded in expenses.
(e) Income Tax payable in May is estimated to
be 250.
(f) Cash Balance on 1st April was 1500.

MCO-005 3 P.T.O.
9. (a) Given the following information : 5, 5

Credit Sales of the year 9,00,000

Debtors 2,00,000
Bills Receivable 1,60,000
Calculate :
(i) Debtors Turnover Ratio
(ii) Average Collection Period
(b) From the following details, Calculate 10
Operating Profit Ratios for 2014 and 2015.

2014 2015
(Z) (Z)
Sales 1,20,000 1,00,000
Less : Cost of goods sold 42,000 36,000
Gross Profit 78,000 64,000
Less : Interest on Debentures 2,000 4,000
Net Profit 76,000 60,000

MCO-005 4
 I TT** -005

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1. (a) " ft -TT c11 , 1a qRa 1 el “I t I 1TIc1-11 aiRTW 10

31T7 etc; fP-17 c11 1 14 3111 t
t I" e..17 dimICI dqwkui Tita.

11
-1 4-110. :111 11AR
(b) 14-1 ri (go -1f77 :
(i) 3c41q 01 , 11 1 ardfq 01 1 11 5
-14/u1 el (11 4 1174 atiziTazi (11 1 1c1 5

2. WIT{ Tffkiqf fffftf7 : 5, 5, 5, 5

(a) .t=11 4-Icq et) ti
(b) let)q
(c) 011 11 ffftikEIT 44 ci
(d) 14-14-1 01 1 1
(e) ITT civic! fiNhuT treff
(f)

MCO-005 5 P.T.O.
3. (a) P-TP:ft cotn wi r cR cold 14 4q .-tr771 5
(b) Trurrttf- afiruif arc 15

4. Tft4 TrTziq f'1+--irofigo 37-daT

4, 4, 4, 4, 4
tI
z
f-4-*-zr 6,00,000
— 1:17-4-4 4,50,000
afvg-F 1,50,000
— -ft:R7 ovi • 90,000
60,000

3-PT -1 1-1 (1 (VI 11c1 c4 :

(a) Tri:r-fq-
(b) 9N-41l m 3TItriu
.

(c) z 9,00,000* f-dWzi 11.-1

(d) 90,000 3f14ff rnta facet 4 11AI
(e) 717. -TT

5. ft-4 w TATITr : 4x5

(a) 4-11.1q titil c'tgich-1

(b) 4ifcitul

(c) 4R-atol
(d) Tilfff
(e) dritqi tic-cf tgict)-I

(f) 1 11-Ich (.11 1 1c1

MCO-005 6
6. Pri-iFortgo 7 34ci T : 5x4
TrTgrt 11\c-ti (price) : Z 5 Arcl icho1914-1
1471t 'WT aRctract) l : 4 m chri 91 1-1
-crW dc-41q-1 a,( trri:rt 11i14) Trrqf
'IRc‘t115 f..13r.
7f9zT dc41q-1 mta cw act) trfrrt
A TP:11 : 20 IW.7.
alkcircich d0-11q-1 : 10,000 aPa
7r4 A-1F-4R :
(a) TITITIt 3czrf7 facer (b) tri:rt fa.9-tur
(c) 4.1, -f-qq-Tur (d) TITITt 71:14FT f4WM
(e) Zii i l oil id fl7T17

7. 744-*-17 f-t-tfITT :Err 31fiT5Fr t? f-(-titrr

qzi-rtt? fafI mcnit ft ail' 13+5+12

8. T311 a*R, -R-'4ff 14TVTT tE*7 20

4'1 Z) 411( :
Actual Budgeted
Particulars
Jan. Feb. March April May June
8,000 7,000 6,000 8,500 9,000 8,000
4,000 3,000 2,500 3,000 2,500 2,000
•&
7

2,000 2,000 1,000 1,500 1,000 1,000

C

500 600 500 800 600 400

3f-d-rw AchR :
(a) 60% Wzr fq-*--zi lchq
(b) ict.) TIT K ldl t 2,TT ict4
'147 eflq ti

MCO-005 7 P.T.O.
 (c) Tr-4-0 -wr n-Trdri 41 ,-clifict.) 61c11 t 1 oiti
111 Ic1I 1 L ct) 4-ii cliq )c-ii t I
(d) "ft7177 Z 200 lici 1:7 t cqi 14 Vfirg lii t I
(e) 1:11 14 tAT altzr*—{ alTrIfffff ti` i ! 250 t I
(f) 31- 1 TIT T 3fRITITW )ti Z1500 WT I

9. (a) -1 4-1F(1 tgcf T 4 141 t : 5, 5

Z
75i 14 397 fat 9,00,000
-KR 2,00,000
Mug Gm 1,60,000
:

(i) .-fqii 31T 31 -1-Errff

(ii) at1Tra. 44,1 3TaftT
(b )
14-10 (sici TL-9-T3ti -14 2014 74 2015 .14 t 10
imi LiRlicii Ti.-T 31TO 7110 -W11771
2014 2015
(() (Z)
fqwzr 1,20,000 1,00,000
Less : fq---4 fmv TM HIM Mind 42,000 36,000
ticbc1 -a1 4T 78,000 64,000
Less : u4f TR egoi 2,000 4,000
74 .f4T 76,000 60,000

MCO-005 8