IGNOU MCO 05 Solved Assignment 2026 English Medium PDF Download Details
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| Course Code | MCO 05 |
| Course Title | Accounting for Managerial Decisions |
| Session | January 2026 – July 2026 |
| Medium | English |
| Assignment Code | MCO-05/TMA/2026 |
IGNOU MCO 05 Solved Assignment 2026 English Medium Question Paper
MCO 05 : Accounting for Managerial Decisions
Q. 1 a) Why accounting practices need be standardized? What progress has been made in India regarding standardization of accounting?
b) The following figures have been obtained from the cost records of a manufacturing company for the year 2002:
Cost of Materials 1,20,000
Wages for Direct labour 1,00,000
Factory overheads 60,000
Distribution expenses 28,000
Administration expenses 67,200
Selling expenses 44,800
Profit 84,000
A work order was executed in 2003 and the following expenses were incurred:
Cost of Materials 16,000
Wages for labour 10,000
Assuming that in 2003 the rate for factory overheads went up 20%, distribution charges went down by 10% and selling and administration charges went up by 12.5%, at what price should the product be quoted so as to earn the same rate of profit on the selling price as in 2002. Show the full workings.
Factory overheads are based on direct wages while administration, selling and distribution expenses are based on factory cost.
Q. 2 a) What are the financial statements? How far are they useful for decision-making purposes?
b) Why do accountants prepare a budget for a period that is already over when we know the actual results by then? Explain.
Q. 3 From the following particulars compute leverage ratios:
Q. 4 a) “Calculation of Variances in standard costing is not an end itself, but a means to an end” Discuss.
b) Discuss a few basic differences between “cash” concept of funds flow statement and “working capital” concept of funds flow statement.
Q. 5 Distinguish between the following :
a) Cash Flow Analysis and Fund Flow Analysis
b) Standard Costing and Budgeting
Q. 6 Write short notes on the following:
a) Responsibility accounting
b) Managerial Uses of Marginal Costing
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