MCO-05 COURSE TITLE : Accounting for Managerial Decisions (2022-23) ENGLSIH

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:
1.
a) What do you mean by managerial accounting? Write down its importance and limitations.
b) How do you classify cost on the basis of relevance to decision-making and variability?
(10+10)
2.
a) What is your understanding about the Revenue Recognition concept? Explain in brief.
b) Explain flow of funds. Write down its Sources and Uses.
(10+10)
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
8% Preference Share Capital
Reserves
Profit and Loss account
10% Debentures
Trade Creditors
Outstanding Expenses
Provision for Taxation
Proposed Dividend
40,000
20,000
10,000
5,000
45,000
9,000
2,000
3,000
6,000
Land
Building
Plant and Machinery
Furniture
Sundry Debtors
Stock
Cash
Prepaid Expenses
22,000
24,000
38,000
5,000
22,000
13,000
14,000
2,000
Total
140000
Total
140000
(20)
4.
a) Write down the difference between:
1. Fixed and Flexible budgeting
2. Variable, Fixed and Semi Variable costs
b) Discuss a few of the managerial problems where marginal costing is helpful in
(10+10)
decision making.
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
Chairs
Book Stands
Total Fixed cost per annum
Current Sales of the Year
60
100
200
40
60
120
50
10
40
Rs. 7,500
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, the manager forecasts the following data regarding cost and output:
Product
Price
(Rs.)
Variable Costs
(Rs.)
% Sales in Total Sales
Tables
Sofa
Book Stands
Total Fixed cost per annum
Projected Sales of the Year
60
160
200
40
60
120
30
20
50
Rs. 7,500
Rs. 26,500
Is this proposal feasible? Advise the management.
(