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Bachelor of Commerce

B.Com

CHOICE BASED CREDIT SYSTEM

BCOE – 142: MANAGEMENT ACCOUNTING

ASSIGNMENT
2022-2023

Valid from 1st January 2023 to 31st December 2023

Sixth Semester

School of Management Studies

Indira Gandhi National Open University

Maidan Garhi, New Delhi -110068


BACHELOR OF COMMERCE
CHOICE BASED CREDIT SYSTEM
BCOE – 142: MANAGEMENT ACCOUNTING
ASSIGNMENT: 2022-23

Dear Students,

As explained in the Programme Guide, you have to do one Tutor Marked Assignment in this
Course. The assignment has been divided into three sections. Section A Consists of long answer questions
for 10 marks each, Section B consists of medium answer questions for 6 marks each and Section C
consists of short answer questions for 5 marks each.

Assignment is given 30% weightage in the final assessment. To be eligible to appear in the Term-end
examination, it is compulsory for you to submit the assignment as per the schedule. Before attempting the
assignments, you should carefully read the instructions given in the Programme Guide.

1. Those students who are appearing in December 2023 Term End Examination they have to
submit latest by in 15th October 2023.

2. Those students who are appearing in June 2023 exams. They have to submit the same latest
by 15th March 2023.

You have to submit the assignment of all the courses to the Coordinator of your Study Centre.
TUTOR MARKED ASSIGNMENT

COURSE CODE : BCOE-142


COURSE TITLE : MANAGEMENT ACCOUNTING
ASSIGNMENT CODE : BCOE-142/TMA/2022-23
COVERAGE : ALL BLOCKS
Maximum Marks: 100

Note: Attempt all the questions.


Section – A

1) Differentiate between Management Accounting and Cost Accounting. (10)

2) What are the financial statements? How far are they useful for decision-making purposes? (10)

3) From the following financial statements, calculate return on capital employed. (10)

Profit and Loss Account for the year ended 31.3.2020


Rs. Rs.
To Cost of goods sold 3,00,000 By Sales 5,00,000
To Interest on Debentures 10,000 By Income from 10, 000
Investment
To Provision for Taxation 1,00,000
To Net Profit 1,00,000

5,10,000 5,10,000

Balance Sheet as on 31.3.2020


Liabilities Rs. Assets Rs.
Share Capital 3,00,000 Fixed Assets 4,50,000
Reserves 1,00,000 Investments in Govt. Bonds 1,00,000
10% Debentures 1,00,000 Current Assets 1,50,000
Profit and Loss a/c 1,00,000
Provision for Taxation 1,00,000
7,00,000 7,00,000

4) What do you mean by Budgetary Control? State the objectives of budgetary control. (10)

5) Write a detailed note on the uses of variance analysis? (10)


Section – B

6) You are given the following data. Compute Sales Variance based on Turnover. (6)

Product A B C Total
Budget Units 3,000 2,000 1,000
Price (Rs.) 30 20 10
Total (Rs.) 90,000 40,000 10,000 1,40,000
Actual Units 3,500 2.400 500
Price (Rs.) 35 25 5
Total (Rs.) 1,22,500 60,000 2,500 1,85,000

7) What are various ways to improve the margin of safety and P/V ratio? (6)

8) Explain the concept of relevant costs. (6)

9) What is the need for pricing decisions? Explain. (6)

10) What is the benefit of companies being socially responsible? (6)

Section – C

11) Write short notes on: (10)


(a) Cost control
(b) Budget manual
(c) Performance reporting
(d) Inflation Accounting
12) Distinguish between: (10)
(a) Financial accounting and management accounting
(b) Cost plus pricing and mark-up pricing
(c) Direct material price variance and direct material usage variance
(d) Marginal cost and fixed cost 

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