MCO-05: Accounting of Managerial Decisions – M.Com Solved Assignment 2019 – 2020

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Master of Commerce – M.Com Second Year Solved Assignments for July 2019 and January 2020 Admission Cycles

MCOM Second Year Tutor Marked Solved Assignment

Course Code : MCO – 05
Course Title : Accounting of Managerial Decisions
Assignment Code : MCO-05/TMA/2019-20
Coverage : All Blocks

Following are the questions of MCO – 05-Accounting of Managerial Decisions of IGNOU – MCOM Assignment for 2019-20 session. To download answers of all the questions of this assignment in English click on the question, subject to availability of answer, you can view or download the answer there.

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Question 1. What is Cash flow statement? Explain the various techniques of preparing cash flow statement. How does it help the management in decision making?

Question 2. Standard cost of product is :
Time : 6 hours per unit
Rate : Rs 4 per hour
Actual cost :
Production 1,500 units
Hours taken 7,600 units
Idle time (in hours) 400
Total hours : 8,000
Total labour cost announced to Rs. 40,000. Calculate Labour Variance.

Question 3. What do you understand by ‘Zero Based Budgeting’? State the benefits that accrue from it and also its disadvantages.

Question 4. The following data are available from the records of a company:
Sales Rs. 60,000
Variable Cost Rs. 30,000
Fixed Cost Rs. 15,000
You are required to :
(a) Calculate the P/V Ratio, Break – Even Point and Margin of Safety at this level.
(b) Calculate the effect of 10% increase in the sale price.
(c) Calculate the effect of 10% decrease in the sale price.

Question 5. What do you mean by the term ‘Budgetary Control’? What are its advantages? Also explain the statement that, “A budget is a means and Budgetary control is the end result”.