Description
TUTOR MARKED ASSIGNMENT
Course Code : MCO – 05
Course Title : Accounting for Managerial Decisions
Assignment Code : MCO – 05/TMA/2020-21
Coverage : All Blocks
Maximum Marks: 100
Attempt all the questions.
Question 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.
Question 2. (a) Differentiate between fixed and flexible budgeting.
(b) Define budgeting and budgetary control. What are the essentials of establishment of Budgeting system?
Question 3. Prepare a Cash Flow statement from the following balance sheet of ABC Sugars Ltd.
| Liabilities | 2018 | 2019 | Assets | 2018 | 2019 |
| Share Capital | 4,00,000 | 5,00,000 | Machinery | 5,00,000 | 7,00,000 |
| General Reserve | 1,25,000 | 1,35,000 | Long Term Investments | 70,000 | 56,000 |
| P&L A/c | 1,10,000 | 1,90,000 | Stock | 2,10,000 | 2,80,000 |
| 12% Debenture | 2,00,000 | 1,50,000 | Debtors | 1,40,000 | 1,14,000 |
| 14% Mortgage Loan | 1,00,000 | 1,60,000 | Cash | 20,000 | 40,000 |
| Creditors | 80,000 | 95,000 | Bank | 50,000 | 20,000 |
| Share Issue Expenses | 25,000 | 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
Question 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?
Question 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
Validity:
These assignments are valid for two admission cycles (July 2020 and January 2021). Validity is given below:
1. Those who are enrolled in July 2020, it is valid upto June 2021 Term End Examination and you must submit assignment to the Coordinator of your study centre latest by 15th March 2021
2. Those who are enrolled in January 2021, it is valid upto December 2021 Term End Examination and you must submit assignment to the Coordinator of your study centre latest by 15th September 2021
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