The ONE Guide That Saves You From “Miss = Fail”

Unprepared for the IGNOU MCO 5 exam in June 2025? You’re playing with flames. Many think “MCQs plus theory = easy”. This belief is why many crash.

You will lose marks if you don’t spot tricky questions, changes in the format, or marking traps.
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Let’s ignore the extras and face the real facts.

Exam Reality that No One Tells You

IGNOU likes to hide four markers in 8-10-line theories.

If you don’t look at actual solved answers before, you’ll be lost during the exam.

I have broken down the MCO 05 June 2025 important questions + solutions brutally honestly — no coaching centre fluff.

What really matters?

MCO 5 Most Important Questions — June 2025 Edition

1. Marginal Costing: The Question that Decides if you Pass or Fail

IGNOU presents the SAME concept every June:
“Difference between Absorption Costing and Marginal Costing + Their Impact on Profits.”

Bold truth: Don’t bother with 60+ if you can’t do this.

Solution (Cinematic breakdown): Imagine two factories next to each other. One counts variable costs per unit, the other includes fixed overheads. At low production, profits appear smaller under absorption, but at high production, they seem to magically increase.

2. Break-Even With A Twist

IGNOU LOVES dropping a BEP number with:

Change in Selling Price
Cost Variables Increase
You can also “find the P/V ratio using partial data”.

Mini story moment:
Last term, a student scored 82 points because he only focused on BEP and PV questions.
All laughed—until the results came out. Now, everyone understands.

3. Silent Killers: Decision-Making questions

Questions like:
Make-or-buy
Shutdown decision
Limiting factor
Special order decision

IGNOU makes these games into mind games by providing misleading cost data.

Creator truth
If you copy textbook steps and do not understand the relevant costs logic, you will FAIL.
If you understand relevant costs logic, you will SCORE.

4. Variance Analysis: The Expected Repeat

June 2025 is almost certain to repeat itself:

Material Cost Variation
Labour Efficiency Variance
Overhead Variance Mix

Pattern-break insight: 70% of students get the formula correct, yet still lose marks for ignoring the SIGN (+/-).

5. Budgetary Control: The Sleeper Problem

Yes.
Is it a topic that is worth scoring? Yes, also.

IGNOU asks:
«Difference between budgetary control & standard costing + advantages»

This is a simple 10-mark test.

Solution Snapshot — Simple and Clean

Marginal Costing Formula Set:Contribution = Selling price – Variable cost

/V Ratio = Contribution/Selling Price
EP (units) = Fixed Cost / Contribution per unit
EP (Rs.) = Fixed Cost/P/V Ratio

Variance Formula SSet:Material Cost Variance = Standard Cost – Actual Cost

Labour Efficiency Variance = (Std Hours – Actual Hours) x Std Rate
Overhead Variance = Standard OH to Actual OH

Decision Questions and Logics

Accept special order if incremental revenue > incremental cost.
When the shutdown loss is greater than the operating loss
Make-or-buy: choose the CHEAPER relevant cost
Limiting factor: select the highest contribution for each limiting factor

Survival rules are not formulas.

Cinematic Moment: Your Exam Day

Imagine this:
You are sitting in an exam room.
The fans are humming.
The pen taps. You flip the page… and you see — BEP plus Marginal Costing + One decision-making curveball.

You will smirk if you have mastered the above.
Otherwise, well, you know.

If you get stuck, please visit:

Viral Highlights

The MCO 05 questions are “fake easy.” They ruin 60% of students. The margin costing will ALWAYS be the deciding factor.
In June 2025, the key to scoring is decision-making.
Signs (+/-) that are in Variations cause the maximum loss of marks.
Bep, P/V ratio and special order = guaranteed topics.
Students who have solved previous patterns will receive an instant 20-30 mark advantage.

Viewer Takeaway (Action Steps)

Write two theory answers.

Budgetary Control
Absorption vs Marginal Costing
Don’t rely on coaching notes—rely on patterns and logic.
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