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TAMIL NADU OPEN UNIVERSITY<br />
Chennai - 15<br />
School of Social Sciences<br />
SPOT ASSIGNMENT<br />
COURSE – M.COM COURSE CODE AY 2011-2012 &<br />
Management & Cost Accounting MCO - 12<br />
CY 2012<br />
Time: 1 Hour Total Marks: 25<br />
Write an essay on any two of the following:<br />
1) Distinguish between Fund Flow Statement and Cash Flow Statement.<br />
2) The standard material cost for 100 kg of chemical D is made up of:<br />
Chemical A – 30 kg @ Rs.4 per kg<br />
Chemical B – 40 kg @ Rs.5 per kg<br />
Chemical C – 80 kg @ Rs.6 per kg<br />
In a batch, 500 kg of chemical D were produced from a mix of :<br />
Chemical A – 140 kg at a cost of Rs.588<br />
Chemical B – 220 kg at a cost of Rs.1056<br />
Chemical C – 440 kg at a cost of Rs.2860<br />
How do the yield, mix and the price factors contribute to the variance in the actual cost<br />
per 100 kg of chemical D over the standard cost<br />
3) Define Budgetary Control. Explain the role of budgeting in financial control.<br />
4) S ltd. is considering to select one of the two projects X and Y, each requiring<br />
investment of Rs.40000. Cash flow estimates for 15 years are as follows:<br />
Situations Project X Project Y<br />
Worst Rs.6000 Nil<br />
Most likely Rs.8000 Rs.8000<br />
Best Rs.10000 Rs.16000<br />
The required rate of return is 10%. The present value of an annuity Re.1 for 15 years<br />
at 10% is 7.606. State which project is more risky.
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