BCOE-142: Management Accounting Question Papers [IGNOU BCOM Courses]

BCOE-142: BACHELOR OF COMMERCE (GENERAL) [B. COM. (G)]
BCOE-142: MANAGEMENT ACCOUNTING Question Paper
Term-End Examination — December, 2025

Time: 3 Hours

Maximum Marks: 100

Note: Attempt Section A and Section B. Section A carries 40 marks and Section B carries 60 marks. All questions carry equal marks.

SECTION - A

Note: Answer any two of the following questions.

1. Discuss the nature and scope of Management Accounting. Differentiate between Management Accounting and Cost Accounting. (10 + 10 = 20 Marks)

2. (a) Explain the concept of cost management. What are the different techniques of cost management? Explain. (3 + 7 = 10 Marks)

(b) Discuss receipt and payment method for preparing cash budget. (10 Marks)

3. Write short notes on any four of the following: (4 × 5 = 20 Marks)

(a) Break-even pricing

(b) Margin of Safety

(c) Social Audit

(d) Overhead Budget

(e) Financial Accounting

(f) Activity Ratio

SECTION - B

Note: Answer any three of the following questions.

4. (a) Write a note on the nature and limitations of financial statements. (15 Marks)

(b) Explain debt-equity ratio and capital employed. (5 Marks)

5. (a) What is meant by budgeting? What are the advantages and limitations of budgeting? (10 Marks)

(b) Dhruwa Ketu Ltd. has placed before you the following trading results: (10 Marks)

Find out:

a) P/V ratio

b) Fixed costs

c) Break-even point

d) Amount of profit if the sales are 2,50,000

6. (a) What is Estimate Costing? How does it differ from Standard Costing? (10 Marks)

(b) The standard cost of a chemical mix is as under: (10 Marks)

4 tons of material X: @ ₹16 per ton

8 tons of material Y: @ ₹18 per ton

Standard yield is 80% of input.

The actual cost for the period is as under:

6 tons of material X: @ ₹9 per ton

7 tons of material Y: @ ₹15 per ton

Actual yield is 10 tons. Compute Material Variance.

7. (a) State the conditions, the income statement prepared with absorption costing and marginal costing will give different results. (10 Marks)

(b) Differentiate between horizontal and vertical presentation of Balance Sheet. (10 Marks)

8. (a) Explain the terms cost centre, revenue centre, profit centre, and investment centre. What is their utility to management? (5 + 5 = 10 Marks)

(b) What are the drawbacks of the traditional costing system? (10 Marks)

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BCOE-142: BACHELOR OF COMMERCE (GENERAL) [B. COM. (G)]
BCOE-142: MANAGEMENT ACCOUNTING Question Paper
Term-End Examination — June, 2025

Time: 3 Hours

Maximum Marks: 100

Note: Attempt Section A and Section B. Section A carries 40 marks and Section B carries 60 marks. All questions carry equal marks.

SECTION - A

Note: Answer any two of the following questions.

1. Define Management Accounting and briefly describe its objectives. What are the roles performed by Management Accounting in an organization? (10 + 10 = 20 Marks)

2. (a) What do you mean by cost reduction? Discuss in detail the advantages and limitations of cost reduction. (3 + 7 = 10 Marks)

(b) Explain the meaning of cash budget. How is it prepared? Discuss its practical importance. (3 + 3 + 4 = 10 Marks)

3. Write short notes on any four of the following: (4 × 5 = 20 Marks)

(a) Differentiated pricing

(b) Angle of Incidence

(c) Human Resource Accounting

(d) Master Budget

(e) Cost Accounting

(f) Capacity Ratio

SECTION - B

Note: Answer any three of the following questions.

4. (a) What are the financial statements? How far are they useful for decision-making purposes? (5 + 10 = 15 Marks)

(b) Explain capital gearing ratio and operating ratio. (5 Marks)

5. (a) Define Budgeting and Budgetary control. State the objectives of Budgeting. (4 + 6 = 10 Marks)

(b) Following data are related with Sanjay Ltd.: (10 Marks)

Calculate the following:

a) P/V ratio

b) Fixed costs

c) Variable costs during the two years

d) Margin of safety at a profit of ₹4,000

6. (a) What is Standard Costing? State the objectives of Standard Costing. (3 + 7 = 10 Marks)

(b) From the following data, calculate material variances: (10 Marks)

Standard output is 80% of input i.e., 80 units. Process loss is 20%.

Actual output is 70% of input i.e., 77 units. Process loss is 30%.

7. (a) Under what conditions, the income statement prepared under full costing or absorption costing and marginal costing will give similar results? (10 Marks)

(b) What is Balance Sheet? Explain its importance and limitations. (3 + 7 = 10 Marks)

8. (a) Explain how the choice of the responsibility center type (cost revenue, profit or investment) affects budgeting and performance reporting. (10 Marks)

(b) Elucidate the steps followed in Target Costing. (10 Marks)

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BCOE-142: BACHELOR OF COMMERCE (GENERAL) [B. COM. (G)]
BCOE-142: MANAGEMENT ACCOUNTING Question Paper
Term-End Examination — December 2024

Time: 3 Hours

Maximum Marks: 100

Note: Attempt Section A and Section B. Section A carries 40 marks and Section B carries 60 marks. All questions carry equal marks.

SECTION - A

Note: Answer any two of the following questions.

1. How is Management Accounting different from Cost Accounting? Explain the functions performed by Management Accounting. (10+10 = 20 Marks)

2. (a) What do you mean by cost reduction? Differentiate between cost control and cost reduction. (3+7 = 10 Marks)

(b) You are given the following information: (10 Marks)

Calculate profit available for equity shareholders, presuming a tax rate of 40%.

3. Write short notes on any four of the following: (4*5 = 20 Marks)

(a) Dupont Model of Financial Analysis

(b) Sales Budget

(c) Material Price Variance

(d) Profit-Volume Ratio

(e) Inflation Accounting

(f) Social Accounting

Section-B

Note: Answer any three of the following questions.

4. (a) From the following information, calculate gross profit, operating profit, PBIT, PBT, and PAT: (15 Marks)

(b) The following are the particulars extracted from the Balance Sheet of XYZ Ltd. on 31-03-2021. Calculate capital gearing ratio: (5 Marks)

5. (a) Explain in brief different types of budgets. (10 Marks)

(b) A company produces two products 'A' and 'B' and budget at 70% level of activity for the year 2023. It gives the following information: (10 Marks)

The managing director proposed to decrease sales to 8,000 units and 12,000 units of Products A and B respectively and increasing the selling price to ₹40 in the case of Product A and ₹30 in the case of Product B.

You are required to present the overall profitability under the original budget and revised budget after taking the above proposal into consideration.

6. (a) Write a detailed note explaining the advantages and limitations of standard costing. (10 Marks)

(b) The following figures relate to the quantity of material required for the production of product: (10 Marks)

Note: There is a typographical inconsistency in the raw exam paper total for standard quantity (60 + 20 is typed as 150), please compute your variances based on standard accounting practices.

Compute:

a) Material Cost Variance

b) Material Price Variance

c) Material Usage Variance

d) Material Mix Variance

7. (a) Explain the managerial uses of marginal costing. (10 Marks)

(b) State which of the following sales mix you would recommend to the management: (10 Marks)

Fixed overheads: ₹1,00,000

Alternative sales mix:

(i) 2,000 units of X and 2,000 units of Y

(ii) 3,000 units of X and 1,000 units of Y

(iii) 4,000 units of X and Nil units of Y

8. (a) Sunrise Company has three divisions A, B and C. The investment in these divisions amounted to ₹2,0,000; ₹6,00,000 and ₹4,00,000 respectively. The profits in these divisions were ₹50,000; ₹60,000 and ₹80,000 respectively. The cost of capital is 10 percent. From the above data, comment on the performance of the three divisions. (10 Marks)

(b) Define Kaizen Costing. What are the features and approaches to Kaizen Costing? (10 Marks)

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BCOE-142: BACHELOR OF COMMERCE (GENERAL) [B. COM. (G)]
BCOE-142: MANAGEMENT ACCOUNTING Question Paper
Term-End Examination — June 2024

Time: 3 Hours

Maximum Marks: 100

Note: Attempt Section A and Section B. Section A carries 40 marks and Section B carries 60 marks. All questions carry equal marks.

SECTION - A

Note: Answer any two of the following questions.

1. Distinguish between cost control and cost reduction. (20 Marks)

2. (a) Discuss the limitations of Financial Statements. (10 Marks)

(b) What are the advantages of Activity-Based Costing? (10 Marks)

3. Write short notes on any four of the following: (5+5+5+5 = 20 Marks)

(a) Target Costing

(b) Social Accounting

(c) Flexible Budgeting

(d) Break-Even-Analysis

(e) Budgetary Control

(f) Secret Reserve

Section-B

Note: Answer any three of the following questions.

4. From the given information, calculate the following: (4+4+4+4+4 = 20 Marks)

(i) Gross Profit

(ii) Operation Cost

(iii) Profit Before Interest and Taxes

(iv) Profit Before Tax

(v) Profit After Tax

Presuming tax rate of 35%.

5. From the given data, calculate the following: (20 Marks)

(i) Material Mix Variance

(ii) Material Price Variance

(iii) Material Usage Variance

6. From the following data, prepare an income statement under absorption costing and marginal costing: (10+10 = 20 Marks)

7. With the help of the following data, a manufacture seeks your advice whether to buy an item from the market or to make it at the floor of the factory: (20 Marks)

8. What are the various methods of pricing? Explain with suitable examples. (20 Marks)

9. Define Responsibility Accounting. How does it differ from Conventional Cost Accounting? (5+15 = 20 Marks)

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BCOE-142: BACHELOR OF COMMERCE (GENERAL) [B. COM. (G)]

BCOE-142: MANAGEMENT ACCOUNTING Question Paper

Term-End Examination — December, 2023

Time: 3 Hours

Maximum Marks: 100

Note: Attempt Section A and Section B. Section A carries 40 marks and Section B carries 60 marks. All questions carry equal marks.

SECTION – A

Note: Answer any two of the following questions.

1. (a) Discuss the techniques of cost control.                        10

(b) What are the advantages of cost control?                       10

2. What do you mean by Standard Costing? Explain the advantages of standard costing. 4+16

3. Write short notes on any four of the following:              5 each

(a) Current Ratio.

(b) Kaizen costing.

(c) Activity -Based Costing.

(d) Inflation Accounting.

(e) Capital Reserve.

(f) Value chain analysis.

Section—B

Note: Answer any three of the following questions.

4. Glass manufacturing company requires you to present the budget for the next year from the following information: 20

5. Coates India Ltd. manufactures a particular product, the standard direct labour cost of which is Rs. 120 per unit whose manufacture involves the following:

During a period, 100 units of the product were produced, the actual labour cost of which was as follows:

Calculate:            5 each

(a) Labour Cost Variance.

(b) Labour Rate Variance.

(c) Labour Efficiency Variance.

(d) Labour Mix Variance.

6. From the following information, calculate:                       5 each

(a) Break-even point

(b) New Break-even point if selling price is reduced by 10%

(c) New Break-even point if variable cost increases by 10%; and

(d) New Break-even point if fixed cost increases by 10%

Sales = Rs. 2,00,000

Variable Cost = Rs. 1,20,000

Fixed Cost = Rs. 30,000

7. X Ltd. manufactures 1000 units p. a. at the cost of Rs. 40 per unit and in year 2023. There is a demand of the whole production at price of Rs. 42.50 per unit in the home market. There is an expected fall in the demand in the home market in the year 2024 and the whole product could be sold in the home market at a selling price of Rs. 37.20 per unit. The cost analysis of 1000 units it as follows:

2000 units could be sold in the foreign market at an explored price of Rs. 35.50 per unit. It is also estimated that for additional 1000 units of the product, the fixed cost unit increase by 10%. Advise the management.           20

8. Discuss any five internal factors and any five external factors influencing pricing decisions.   10+10

9. For what types of industries, Human Resource Accounting is most suitable? Is it relevant to countries like India? Explain.                10+10

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BCOE-142: BACHELOR OF COMMERCE (GENERAL) [B. COM. (G)]
BCOE-142: MANAGEMENT ACCOUNTING Question Paper
Term-End Examination — June, 2023

Time: 3 Hours

Maximum Marks: 100

Note: Attempt Section A and Section B. Section A carries 40 marks and Section B carries 60 marks. All questions carry equal marks.

SECTION – A

Note: Answer any two of the following questions.

1. Define Management Accounting. Explain the techniques of Management Accounting. What are the roles performed by Management Accounting in an organisation?                 10+10

2. (a) What is the meaning of Reserves? Distinguish between provision and reserves.       3+7

(b) What are the techniques of cost management?           10

3. Write short notes on any four of the following:              4×5=20

(a) Trend Analysis.

(b) Performance Budgeting.

(c) Direct Material Usage Variance.

(d) Cost Volume Profit Analysis.

(e) Responsibility Accounting.

(f) Environmental Accounting.

Section—B

Note: Answer any three of the following questions.

4. (a) From the following information, compute shareholder’s funds:        15

Fixed assets include Rs. 40,000 for patents which are considered useless and a freehold premise which is valued Rs. 75,000 more than its book value. Goodwill is to be valued at Rs. 2,20,000.

(b) What is Interest Coverage Ratio?                       5

5. A company producing electronic watches, estimate the following factory overhead costs for producing 5000 units:   20

Indirect labour, indirect material and expendable tools are entirely variable. Heat, light and power and inspection costs are variable to the extent of 50%, 40% respectively. Other costs are fixed costs a month. Prepare a flexible budget for production of 4000 and 6000 units per month. Also find out the average factory overheads per unit for these two production levels.

6. (a) The following information is available from the records of a company:        10

You are required to calculate the following:

(i) Labour Cost Variance.

(ii) Labour Rate Variance.

(iii) Labour Efficiency Variance.

(iv) Labour Mix Variance.

(v) Revised Labour Efficiency Variance.

(b) What are the methods of classification of Material Variances? Explain.           10

7. (a) ABC Ltd., a multiproduct company, furnishes the following data:                     15

Assuming that there is no change in price and variable costs. Fixed costs are incurred equally in the two periods. Calculate the following:

(i) Profit-Volume ratio.

(ii) Fixed expenses.

(iii) Break-even point.

(iv) Sales required to earn a profit of Rs. 10,000

(v) Profit when sales are Rs. 80,000

(b) Given:                            5

Production = 100000 units

Sales 90000 units @ Rs. 3 per unit

Variable manufacturing costs = Rs. 2 per unit

Fixed overheads = Rs. 50,000

Selling and distribution costs = Rs. 10,000 of which Rs. 4,000 is variable.

Prepare the income statement under marginal costing.

8. (a) With the help of the following data, a manufacturer seeks your advice whether to buy an item from the market or to produce it at the floor of the factory:                 10

Advise the management.

(b) Describe the factors influencing pricing decisions.      10

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BCOE-142: BACHELOR OF COMMERCE (GENERAL) [B. COM. (G)]
BCOE-142: MANAGEMENT ACCOUNTING Question Paper
Term-End Examination — December, 2022

Time: 3 Hours

Maximum Marks: 100

Note: Attempt Section A and Section B. Section A carries 40 marks and Section B carries 60 marks. All questions carry equal marks.

SECTION – A

Note: Answer any two of the following questions.

1. Discuss the objectives and advantages of management accounting.      10+10

2. (a) What do you mean by Activity-Based Costing? What are its advantages? Explain.     3+7

(b) Distinguish between cost control and cost reduction.                10

3. Write short notes on any four of the following:              4x5=20

(a) Kaizen Costing.

(b) Marginal Costing.

(c) Secret Reserve.

(d) Zero-Based Budgeting.

(e) Labour Rate Variance.

(f) Activity-Based Costing.

SECTION B

Answer any three of the following questions:

4. (a) Calculate profit available to equity shareholders, presuming tax rate of 40% from the following information.        15

(b) What is Inventory Turnover Ratio?                    5

5. From the following data, prepare a cash budget according to Adjusted Profit and Loss method.   20

Balance Sheet as on 31.12.2020

 Trading and P/L A/c for the year ending 31.12.2020

Closing Balances of Certain Items: Share Capital Rs. 1,20,000; 10% Debentures Rs. 30,000; Creditors Rs. 40,000; Debtors Rs. 60,000; Bills Payable Rs. 12,000; Bills Receivables Rs. 4,000; Furniture Rs. 15,000 and Plant Rs. 50,000. (Both these assets were purchased at the end of the year).

6. (a) A company produces a product by using three different components of X, Y and Z. Their cost information for product and purchase price are as follows:

Only one of the components can be produced in the factory and rest two components are to be bought from outside. Select the components which should be bought from outside.                     10

(b) Distinguish between Standard Costing and Budgeting.              10

7. (a) From the following information, calculate:                 5+5+5

(i) Fixed Overhead Variance.

(ii) Expenditure Variance.

(iii) Fixed Overheads Efficiency Variance.

(b) Calculate Break-Even Point in units, from the following data:                5

Selling Price = Rs. 3 per unit

Variable Cost = Rs. 2 per unit

Fixed Cost = Rs. 90,000

8. (a) The cost information available is as follows:              5+5

Sales = 1,00,000 units

Selling Price = Rs. 10 per unit

Variable Cost = Rs. 6 per unit

Fixed Cost = Rs. 60,000 p.a.

Compute the following:                  5

(1) Required sales volume in units to earn a profit of Rs. 40,000, and

(2) Sales volume in units to earn a profit of Rs. 2 per unit.

(b) Discuss the Liquidity Analysis Ratios.                                 10

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BCOE-142: BACHELOR OF COMMERCE (GENERAL) [B. COM. (G)]
BCOE-142: MANAGEMENT ACCOUNTING Question Paper
Term-End Examination — June, 2022

Time: 3 Hours

Maximum Marks: 100

Note: Attempt Section A and Section B. Section A carries 40 marks and Section B carries 60 marks. All questions carry equal marks.

SECTION – A

Note: Answer any two of the following questions.

1. (a) What do you mean by Budgeting? What are its advantages?             3+7

(b) Discuss the process of performance budgeting.           10

2. Describe the external factors influencing pricing decisions.       20

3. Write short notes on any four of the following:  4x5=20

(a) Residual Income.

(b) Throughput Costing.

(c) Human Resources Accounting.

(d) Management Accounting.

(e) Provisions.

(f) Cost Reduction.

SECTION B

Answer any three of the following questions.

4. (a) The following Balance Sheet pertains to X Company Ltd. as at 31-03-2020: You are required to calculate (i) Current Ratio, and (ii) Quick Ratio.  7+7

Balance Sheet as at 31.03.2020

(b) Write any five limitations of Ratio Analysis.   6

5. Draw up a flexible budget for overhead expenses on the basis of the following data and determine the overhead rate at 70%, 80%, and 90% plant capacity.      20

Estimated direct labour hours = 1,24,000 hours

6. (a) From the following information, calculate:                5+5

(i) Material Price Variance, and

(ii) Material Usage Variance.

For making 10 kg of GEMCO products, the standard material requirement is:

During April 2020, 1000 kg of GEMCO products were produced. The actual consumption of material was as under:

(b) Explain the advantages of Standard Costing. 10

7. (a) You are given the following data:

Fixed cost Rs. 4,000

Break-even point Rs. 10,000

Calculate:

(i) Profit when sales are Rs. 20,000, and

(ii) New break-even point if selling price is reduced by 20%.          5+10

(b) From the following data, calculate the actual sales:    5

Fixed Cost = Rs. 8,000

Profit Earned = Rs. 2,000

Break-even Sales = Rs. 40,000

8. (a) Z Ltd. company produces and markets ball point pens. Due to competition, the company proposes to reduce the selling price by 10%. Examine the effects of reduction in selling price, for the following available information:

Indicate the number of units to be sold to maintain the same profit. 10

(b) Discuss the steps involved in Activity-Based Costing with suitable examples. 10

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