MCO-05 Accounting for Managerial Decisions in English Solved Assignment 2019-2020

MCO-05 Solved Assignment 2019-2020


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

Title Name

MCO-05 Accounting of Managerial Decisions Solved Assignment 2019-20

University IGNOU
Service Type Solved Assignment (Soft copy/PDF)
Course MCOM
Language ENGLISH
Semester 2019-2020 Course: MCOM
Session 2019-20
Short Name MCO-05 (ENGLISH)
Assignment Code MCO – 05/TMA/2019-20
Product Assignment of MCOM 2019-2020 (IGNOU)
Submission Date 1. Those who are enrolled in July 2019, it is valid upto June 2020.
2. Those who are enrolled in January 2020, it is valid upto December 2020.



Attempt all the questions
1. What is Cash flow statement? Explain the various techniques of preparing cash flow statement.
How does it help the management in decision making? (20)
2. Standard cost of product is : (20)
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.
3. What do you understand by ‘Zero Based Budgeting’? State the benefits that accrue from it and
also its disadvantages. (20)
4. The following data are available from the records of a company: (20)
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.
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”.


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