MCO-05: Accounting for Managerial Decisions – 2022 (M.Com First Semester)

Description

TUTOR MARKED ASSIGNMENT
Course Code : MCO-05
Course Title : Accounting for Managerial Decisions
Assignment Code : MCO-05/TMA/2022
Coverage : All Blocks
Maximum Marks : 100

Attempt all the questions.

Question 1. a) What do you mean by managerial accounting? Write down its importance and limitations.

Question 1. b) How do you classify cost on the basis of relevance to decision-making and variability?

Question 2. a) What is your understanding about the Revenue Recognition concept? Explain in brief.

Question 2. b) Explain flow of funds. Write down its Sources and Uses.

Question 3. From the following particulars compute leverage ratios :

Balance Sheet of Ram Ltd.
as on March 31, 2020

Liability	Rs.	Assets	Rs.
Equity Share Capital	40,000	Land	22,000
8% Preference Share Capital	20,000	Building	24,000
Reserves	10,000	Plant and Machinery	38,000
Profit and Loss account	5,000	Furniture	5,000
10% Debentures	45,000	Sundry Debtors	22,000
Trade Creditors	9,000	Stock	13,000
Outstanding Expenses	2,000	Cash	14,000
Provision for Taxation	3,000	Prepaid Expenses	2,000
Proposed Dividend	6,000
Total	1,40,000	Total	1,40,000

Question 4. a) Write down the difference between:

1. Fixed and Flexible budgeting

2. Variable, Fixed and Semi Variable costs

Question 4.b) Discuss a few of the managerial problems where marginal costing is helpful in decision making.

Question 5 . A factory manager seeks your advice whether he should drop one item from his product line and replace it with another. Present cost and production data per unit are as follows:

Product	Price (Rs.)	Variable Costs (Rs.)	% Sales in Total Sale
Tables	60	40	50
Chairs	100	60	10
Book Stands	200	120	40
Total Fixed cost per annum	Rs. 7,500
Current Sales of the Year	Rs. 25,000

The change under consideration consists of dropping the line of chairs and replacing it with a line of Sofa. If this drop and add change is made , forecasts the following data regarding cost and output:

Product	Price (Rs.)	Variable Costs (Rs.)	% Sales in Total Sales
Tables	60	40	30
Sofa	160	60	20
Book Stands	200	120	50
Total Fixed cost per annum	Rs. 7,500
Projected Sales of the Year	Rs. 26,500

Is this proposal feasible? Advise the management.

Validity:

These assignments are valid for two admission cycles (July 2021 and January 2022). Validity is given below:

1. Those who are enrolled in January 2022, it is valid upto June 2022 Term End Examination and you must submit assignment to the Coordinator of your study centre latest by 15th March 2022

2. Those who are enrolled in July 2022, it is valid upto December 2022 Term End Examination and you must submit assignment to the Coordinator of your study centre latest by 15th September 2022

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