MASTER OF COMMERCE. Term-End Examination. Time : 3 hours Maximum Marks : 100 Note : Attempt any five questions. All questions carry equal marks.

Transcription

1 No. of Printed Pages : 8 MCO-05 MASTER OF COMMERCE Term-End Examination co co June, 2011 wzd- CD MCO-05 : ACCOUNTING FOR MANAGERIAL DECISIONS Time : 3 hours Maximum Marks : 100 Note : Attempt any five questions. All questions carry equal marks. 1. Define Accounting. How does it help interested parties in business? Also explain briefly the objective of accounting =20 2. Explain the role of Ratio Analysis in the interpretation of financial statements. Also state the limitations of ratio analysis =20 3. What do you mean by Funds Flow Statement? Prepare a statement of sources and applications of funds by taking an imaginary Balance Sheet. 8+12=20 4. Explain briefly the terms 'Standard Cost' and 'Standard Costing'. Enumerate the advantages and limitations of standard costing system. 6+14=20 MCO-05 1 P.T.O.

2 5. "A manager requires information about the past to control and plan for the future." Comment upon this statement and state how budgeting helps in this respect? 10+10=20 6. Define 'marginal costing'. What is its utility in a large manufacturing concern? 8+12=20 7. (a) How is the tax liability determined in a Company? 8+12=20 (b) Trial Balance of AB Ltd. as on 31st March 2009 (Extracts) Name of Account Dr. (Z) Cr. (Z) Advance Income-tax for ,20,000 Advance Income-tax for ,30,000 Provision for Income-tax ,00,000 Adjustments : (i) The income-tax assessment for completed during the year 'showed gross tax demand of 2,40,000 but no effect has been given for this in accounts. (ii) Provision for income tax is to be made for 2,10,000 for Show relevant extracts in the Final Accounts of MCO-05 2

3 8. AB company manufactures two products X and Y 20 and sells them through two zones East and West. From the following information, prepare a Sales Budget showing the budgeted and actual sales of current year. Product Budgeted Sales Actual Sales East West East West X Z 9 9 Z 9 Z 9 Y Z 21 Z Z 21 Adequate market studies reveal that product X is popular but underpriced. It is observed that if the price of X is increased by 1, it will still find a ready market. On the other hand, Y is overpriced and the market could absorb more if sale price of Y is reduced by 1. The management has agreed to give effect to the above price changes. As a result of the above decisions, the following estimates have been prepared by Zonal Managers : Product East West X + 10% + 5% Y +20% +10% With the help of an intensive advertisement campaign, the following additional sales over the estimated sales of zonal managers are possible Product East West X Y MCO-05 3 P.T.O.

4 9. A company produces a product from a single material. It operates a standard costing system and furnishes you the following information : =20 Particulars Budget Actual Production in units Materials : Total quantity (kg.) 1,600 1,300 Total amount 32,000 27, 300 Labour : Total Hours Total amount 3,000 3,000 You are required to compute the following variances : (a) (b) (c) (d) Material Price Variance Material Usage Variance Labour Rate Variance Labour Efficiency Variance MCO-05 4

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6 4. `.51ITTEF (Imo' * c1 cvici fqfet' oqrseg --1?-4-4 I 3RTtl fqfq* T` =20 *-1* -31N *1-Wf I 5. 4, -) f97:177*wr A 'Irrt fff4 Trizrr t 1" -Fr 31r-drq-9r mql-f 7:rIzi-AT -44 TEIT 10+10= WA- I f* =20 f9-417t 7#217 T:1-4. cht 6441Picti t? 6. #1:rf (1141cf c)_111-cirt LIFOTr 7. (a) Q.cli.qTfzr -WT f9iftut f*-7:1 w=1-)i1 ft7:11 \Midi t? 8+12=20 (b) Fcifi-is *31 HI 2009 (3171) HHIgi\31-1 : * fff4 3-TfrAli 3-TrziT7-2,20, t fry :1S i c - 2,30, * FrO 3-Pm c HicRTN 2,00,000 (i) c:14 r -g * 37:T*7 fffttf7tri 14 7f7:1 2,40,000 r 31T, q(-ci i -41:614T -40-9fatti>?1' 1tI MC0-05 6

7 (ii) * -51TqqTi t I! 2,10,000 W' atizr*-{ Tsi * 3Tr-1:r oici 377q77:{W sifaftdii f =Elt 'X' 3t{ 'Y' d1f3thd t 20 4-A17-4 OTCP-9T-T facer t t F-14-ircifiga77T31i a~z Trl afrt alt-cirach f ktgoi t- f-a fqwzi 7-A-a tzi-r 1,1 f irelch f4aiftql:i trrv-- r X 9 9 7,000@Z 9 Y ,000@z 21 cimit i IT* 33g -j qiici f"-- X q71 3-Tfw- (5r TRIT tfw x r 1:fff 7cit qqi kqi sar t * 1 3ifiTw.1FTfr--* r 4r 4-r4 -crt 31-f -ftwzr TrkTrr.wi:t c4.)4 ITT t 77 f Trw-w t cr-bwr f9-crizff*374r It Or-T:1 TP41-4 w(i 3-TTgrri dc ti 1#914 X + 10% + 5% Y + 20% + 10% MCO-05 7 P.T.O.

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