No.

of Printed Pages : 11 MCO-05

MASTER OF COMMERCE
(M. COM.)
Term-End Examination
December, 2022
MCO-05 : ACCOUNTING FOR MANAGERIAL
DECISIONS

Time : 3 Hours Maximum Marks : 100

Note : Answer any five questions. Each question
carries equal marks.

1. Explain any four accounting concepts which

guide the accountant at the recording stage.
5+5+5+5
2. Write short notes on the following : 5+5+5+5

(i) Interim dividend

(ii) True and Fair view

(iii) Provision for Taxation

(iv) Preliminary Expenses

P. T. O.
 [2] MCO-05

3. Prepare a cash flow statement from the

following information under both direct method

and indirect method : 10+10

2020 2021
Liabilities
(`) (`)

Equity shares 4,000 4,000

12% Redeemable
pref. shares — 1,000

P & L A/c 100 120

General Reserve 200 200

Debentures 600 700

Creditors 1,200 1,100

Prov. for taxation 800 1,000

Bank overdraft 1,250 680

Total 8,150 8,800

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2020 2021
Assets
(`) (`)
Fixed Assets 4,100 4,000
Less :
depreciation 1,100 1,500
3,000 2,500
Sundry debtors 2,000 2,400
Stock 3,000 3,500
Prepaid exp. 30 50
Cash 120 350
Total 8,150 8,800

4. What is a cash budget ? How is it prepared ?

Illustrate. 20

5. The following figures relate to the quantity of

material required for the production of a
product :
Standard Actual
Qty. Price Amount Qty. Price Amount
(kg) (`) (`) (kgs) (`) (`)

A 60 10 600 80 12 960
B 90 20 1,800 60 25 1,500
150 2,400 140 2,460

P. T. O.
 [4] MCO-05

Compute : 5+5+5+5
(a) Material Cost Variance
(b) Material Price Variance
(c) Material Usage Variance
(d) Material Mix Variance
6. (a) Define Responsibility Accounting. How
does it differ from Conventional Cost
Accounting ? 10
(b) State the features of Responsibility
Accounting. 10
7. XYZ Ltd. produces three products and cost data
is as follows :
X Y Z
(`) (`) (`)
Selling price per
unit 100 75 50
P/V Ratio 0.10 0.20 0.40
Maximum sales
potential (in units) 40,000 25,000 10,000
Raw material
content as % of
variable cost 50 50 50
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The fixed expenses are estimated at ` 6,80,000.

The company uses a single raw material in all
the products. Raw material is in short supply
and the company has a quota for the supply of
raw materials to the extent of ` 18,00,000 per
annum for the manufacture of its product to
meet its sales demand.

(a) Calculate the product mix which will give

the maximum overall profits keeping the
short supply of raw materials. 10

(b) Compute the maximum profit. 10

8. (a) What do you understand by differential

costing ? How does it differ from marginal
costing ? 10

(b) Explain the practical applications of

differential costing. 10

P. T. O.
 [6] MCO-05

MCO-05
Lukrd mikf/ (,e- dkWe-)
l=kkar ijh{kk
fnlEcj] 2022
,e- lh- vks--05 % izcU/dh; fu.kZ;ksa ds fy, ys[kkadu
le; % 3 ?k.Vs vf/dre vad % 100

uksV % fdUgha ik¡p iz'uksa ds mÙkj nhft,A lHkh iz'uksa ds

vad leku gSaA

1- fdUgha pkj mu ys[kkadu ladYiukvksa dh O;k[;k

dhft, tks vfHkys[ku esa ys[kkdkjksa dk ekxZn'kZu djrh
gSaA 5+5+5+5

2- fuEufyf[kr ij laf{kIr uksV fyf[k, % 5+5+5+5

(i) vUrfje ykHkka'k

(ii) lgh ,oa fu"i{k fopkj
 [7] MCO-05

(iii) dj ds fy, izko/ku

(iv) izkjfEHkd O;;
3- fuEufyf[kr lwpukvksa ls izR;{k fof/ ,oa vizR;{k
fof/ ls jksdM+ izokg fooj.k rS;kj dhft, % 10$10
2020 2021
ns;rk,¡
(`) (`)

lerk va'k 4,000 4,000

12% 'kks/uh;
iwokZf/dkj va'k — 1,000

ykHk&gkfu [kkrk 100 120

lkekU; lap; 200 200

½.ki=k 600 700

ysunkj 1,200 1,100

dj ds fy,
izko/ku 800 1,000

P. T. O.
 [8] MCO-05

cSad vf/fod"kZ 1,250 680

;ksx 8,150 8,800

2020 2021
ifjlEifÙk;k¡
(`) (`)

LFkk;h ifjlEifÙk;k¡ 4,100 4,000

?kVkuk % ßkl 1,100 1,500

3,000 2,500

fofo/ nsunkj 2,000 2,400

LVkWd 3,000 3,500

iwoZnÙk O;; 30 50

jksdM+ 120 350

;ksx 8,150 8,800

4- jksdM+ ctV D;k gS \ ;g dSls cuk;k tkrk gS \

mnkgj.k lfgr O;k[;k dhft,A 20
5- fuEufyf[kr lwpuk,¡ ,d mRikn ds fuekZ.k ls
lEcfU/r gSa %
ekud okLrfod
ek=kk dher jkf'k ek=kk dher jkf'k
 [9] MCO-05

(fdxzk-) (`) (`) (fdxzk-) (`) (`)

A 60 10 600 80 12 960
B 90 20 1,800 60 25 1,500
150 2,400 140 2,460
Kkr dhft, % 5$5$5$5

(d) lkexzh ykxr fopj.k

([k) lkexzh ewY; fopj.k

(x) lkexzh mi;ksx fopj.k

(?k) lkexzh feJ.k fopj.k

6- (d) mÙkjnkf;Ro ys[kkadu dks ifjHkkf"kr dhft,A ;g

ikjEifjd ykxr ys[kkadu ls dSls fHkUu gS \ 10

([k) mÙkjnkf;Ro ys[kkadu dh fo'ks"krkvksa dks

crkb,A 10

7- XYZ fyfeVsM rhu mRiknksa dk fuekZ.k djrh gSA muls

lEcfU/r ykxr vk¡dM+s bl izdkj gSa %

X Y Z

P. T. O.
 [ 10 ] MCO-05

(`) (`) (`)

foØ; ewY;
izfr ;wfuV 100 75 50

ykHk ek=kk
vuqikr 0.10 0.20 0.40

vf/dre fcØh
dh lEHkkouk
(;wfuV) 40,000 25,000 10,000

ifjorZuh; ykxr
ds % ds :i esa
dPps eky dh
lkexzh 50 50 50

fLFkj O;; dk vuqeku ` 6]80]000 yxk;k x;k gSA

dEiuh lHkh mRiknksa esa ,d tSlh dPph lkexzh dk
iz;ksx djrh gSA dPps eky dh vkiw£r de gS vkSj
dEiuh ds ikl viuh fcØh dh ek¡x dks iwjk djus ds
fy, vius mRikn ds fuekZ.k ds fy, ` 1800000 izfr
o"kZ dh lhek rd dh dPps eky dh vkiw£r dk
dksVk gSA
 [ 11 ] MCO-05

(d) ,slk mRikn feJ.k Kkr dhft, tks vf/dre

ykHk iznku dj ldsA dPps eky dh vkiw£r dh
deh dks è;ku esa j[kuk gSA 10
([k) vf/dre ykHk Kkr dhft,A 10
8- (d) foHksnd ykxr ls vki D;k le>rs gSa \ ;g
lhekUr ykxr ls fdl izdkj fHkUu gS \ 10
([k) foHksnd ykxr fu/kZj.k i¼fr ds O;kogkfjd
mi;ksx dh O;k[;k dhft,A 10

P. T. O.
 [ 12 ] MCO-05

MCO–05