ECO 10 key facts at a glance
- Course: ECO 10 Elements of Costing (IGNOU, School of Management Studies)
- Programmes: IGNOU B.Com and the Bachelor's Degree Programme (BDP), Elective Commerce
- Syllabus: 4 blocks, 13 units
- Exam: 2 hours, 50 marks
- Section A: Theory, attempt any 2 questions, 10 marks each
- Section B: Practicals, attempt any 2 questions, 15 marks each
- Papers analysed: 6 sessions, June 2023 to December 2025
- In the file: 13 solved questions, 13-page PDF
- On this page: 5 sample answers; 8 more in the full file
ECO 10 Solved Guess Paper 2026 from Unnati Educations gives you 13 exam-ready questions with full answers for IGNOU's Elements of Costing course: six theory answers and seven practical sums worked out in proper account format. Every question comes from a study of six real term-end papers, June 2023 to December 2025.
ECO 10 Elements of Costing is the cost accounting elective studied in IGNOU's Bachelor of Commerce (B.Com) and the broader Bachelor's Degree Programme (BDP), the old graduation scheme. The paper runs for two hours and carries 50 marks, and 30 of those marks come from just two practical sums. That is why more than half of this file is numericals.
1. What the ECO 10 Guess Paper Covers
The file holds 13 solved ECO 10 questions in a 13-page PDF: six 10-mark theory answers for Section A and seven 15-mark practical sums for Section B, each tagged with its block and the sessions in which it last appeared.
Costing students usually fail in one of two ways. Either they learn theory well and freeze on the sums, or they practise sums and lose easy marks on a 10-mark theory question. This file is built to stop both, with theory and practicals kept in the same ratio the real paper uses.
Each question card shows the block, the last sessions it came up in, and a word or format target. So before you start reading you already know whether the answer needs about 250 words, a short note of 150 words, or a full stores ledger with balance columns.
The practicals are the real strength. The LIFO ledger, the contract account and the two-process account are solved line by line, and each one ends with a check that the totals agree. Written for the 2026 term-end cycle, the file is now most useful for the December 2026 exam.
2. ECO 10 Sample Questions with Solutions (5 of 13)
Five of the 13 answers are shown in full below: two theory answers (advantages of cost accounting and ABC analysis) and three practicals (LIFO stores ledger, contract account and reconciliation statement).
They are taken straight from the paid file, with only the page layout changed. The other eight answers, on limitations of financial accounting, installing a costing system, cost classification, purchasing, idle time with group bonus, the cost sheet, process accounts and stock levels with EOQ, are in the full PDF.
Advantages of cost accounting
Question: What are the advantages of cost accounting? Write any five (or more) advantages. (about 250 words)
Meaning. Cost accounting is the part of management accounting that sets budgets and standard costs, records the actual costs of operations, processes, departments or products, and analyses the variances, profitability and use of funds.
Main advantages
- Gives a steady flow of information on production, cost, materials, labour and plant capacity, which helps plan output.
- Points out unproductive activities, losses, wastage and inefficiency that need corrective action.
- Builds correct and reliable cost data, and helps in preparing budgets and business forecasts.
- Measures efficiency through standards and the analysis of variances.
- Gives a sound basis for fixing selling prices and for estimating cost and revenue in advance.
- Allows cost comparison between periods, products, departments or firms.
- Helps inventory control and periodic stock-taking, and shows the cost of idle capacity.
- Lets management work out cost and profit more often, and supports decisions such as make or buy, replacement, shut-down and special orders on facts, not guesswork.
Conclusion. Costing helps not only factories but also hospitals, banks and transport firms, and through greater efficiency it benefits consumers, employees, investors and the wider economy.
ABC analysis of inventory control
Question: Explain the technique of ABC analysis for inventory control with suitable examples. (about 250 words)
Meaning. ABC analysis divides materials into three groups by their consumption value so that control effort goes where the money is. It is also called Proportional Parts Value Analysis.
The three categories
- A items: a small number of high-value items, under 10% of the total count, that make up about 70% of consumption value. They get the closest control.
- B items: the middle group, where the share in number is roughly equal to the share in value.
- C items: a large number of low-value items, over 70% of the count, making up only about 10% of consumption value. They need the least effort.
Steps in classification
Work out the unit cost and usage of each item; multiply them to get annual value; list items in descending order of value; accumulate values and counts as percentages of the total; draw a curve of percentage items against percentage value; and mark off the A, B and C limits on that curve.
Conclusion. ABC analysis puts control where money value is highest, cuts clerical cost, spots obsolete stock and improves inventory turnover.
Stores ledger account by the LIFO method
Question: Prepare a Stores Ledger Account using the LIFO method. 1 July: opening balance 500 units at ₹20; 4 July: purchased 400 units at ₹21; 10 July: issued 600 units; 14 July: purchased 800 units at ₹24; 22 July: issued 500 units; 30 July: issued 300 units.
Method. Under LIFO, the latest lot received is issued first, so issues are priced at the most recent rate. When prices are rising, production is charged at current cost and closing stock is left at older, lower prices.
| Date | Receipts (qty × rate) | Receipts ₹ | Issues (qty × rate) | Issues ₹ | Balance qty | Balance ₹ |
|---|---|---|---|---|---|---|
| Jul 1 | 500 × 20 | 10,000 | — | — | 500 | 10,000 |
| Jul 4 | 400 × 21 | 8,400 | — | — | 900 | 18,400 |
| Jul 10 | — | — | 400 × 21 + 200 × 20 | 12,400 | 300 | 6,000 |
| Jul 14 | 800 × 24 | 19,200 | — | — | 1,100 | 25,200 |
| Jul 22 | — | — | 500 × 24 | 12,000 | 600 | 13,200 |
| Jul 30 | — | — | 300 × 24 | 7,200 | 300 | 6,000 |
Check. Opening stock and receipts total ₹37,600, which equals issues of ₹31,600 plus closing stock of ₹6,000. Closing stock is 300 units at ₹20, the oldest lot, exactly as LIFO predicts.
Contract account and profit transferable to P&L
Question: A contractor takes a building contract for ₹10,00,000; the contractee pays 90% of work certified. First-year costs: materials ₹1,20,000; machinery ₹30,000; labour ₹1,50,000; other expenses ₹90,000. At year-end, machinery is valued at ₹20,000 and material at site ₹5,000. Work certified ₹4,00,000; work uncertified ₹15,000. Prepare the contract account and show the profit transferable to P&L.
| Dr particulars | ₹ | Cr particulars | ₹ |
|---|---|---|---|
| To materials | 1,20,000 | By machinery c/d | 20,000 |
| To machinery | 30,000 | By material at site c/d | 5,000 |
| To labour | 1,50,000 | By work-in-progress: certified | 4,00,000 |
| To other expenses | 90,000 | By work-in-progress: uncertified | 15,000 |
| To notional profit c/d | 50,000 | — | — |
| Total | 4,40,000 | Total | 4,40,000 |
Profit to P&L. Work certified is ₹4,00,000, which is 40% of the contract price. Because the contract is at least one-fourth but less than half complete, only one-third of notional profit is taken, reduced in the ratio of cash received to work certified.
Cash received = 90% of ₹4,00,000 = ₹3,60,000. Profit to P&L = 1/3 × 50,000 × (3,60,000 ÷ 4,00,000) = ₹15,000. The balance of ₹35,000 is kept as a reserve against the unfinished work.
Reconciliation of cost and financial accounts
Question: Net loss as per financial accounts is ₹57,320. Director's fees not charged in cost accounts ₹1,300; provision for bad and doubtful debts ₹1,140; bank interest credited in financial accounts ₹60; obsolescence loss in financial accounts ₹16,600; overheads ₹17,000 in cost accounts but ₹16,640 in financial accounts; depreciation ₹9,600 in financial accounts but ₹8,000 in cost accounts. Find the result as per cost accounts.
| Particulars | Add ₹ | Less ₹ |
|---|---|---|
| Net loss as per financial accounts | — | 57,320 |
| Director's fees, not in cost accounts | 1,300 | — |
| Provision for bad and doubtful debts, financial only | 1,140 | — |
| Obsolescence loss, financial only | 16,600 | — |
| Extra depreciation in financial books (9,600 less 8,000) | 1,600 | — |
| Bank interest, credited in financial books only | — | 60 |
| Overheads over-absorbed in cost books (17,000 less 16,640) | — | 360 |
| Totals | 20,640 | 57,740 |
| Net loss as per cost accounts (57,740 less 20,640) | — | 37,100 |
Logic in one line. Anything that lowered the financial result but never touched the cost books is added back; income seen only in financial books, and overheads charged more heavily in cost books, is taken away.
If these five meet your standard, the other eight follow the same pattern, including the two-process account with normal loss and abnormal gain, which many students find the hardest sum in the book.
3. ECO 10 Exam Pattern: Section A and Section B
The ECO 10 term-end exam lasts 2 hours and carries 50 marks: you attempt any two theory questions from Section A (10 marks each) and any two practical questions from Section B (15 marks each).
This split is printed on the official papers, for example the IGNOU June 2019 ECO 10 question paper, where Section B asked for a cost sheet, a contract account, and an EOQ with machine hour rate sum. Each section usually offers three questions, so you get one spare choice in each.
| Part | Marks | Common split | Target length | Time to give it |
|---|---|---|---|---|
| Section A, first theory question | 10 | 10, or 7 + 3 | About 250 words | 22 minutes |
| Section A, second theory question | 10 | Short notes, 5 + 5 | About 150 words per note | 22 minutes |
| Section B, first practical | 15 | One full sum | Account or statement plus working notes | 35 minutes |
| Section B, second practical | 15 | One sum, or 10 + 5 in two parts | Formula, working and final answer | 35 minutes |
Timings are our suggestion for a 120-minute paper and leave about six minutes to check that every account balances.
4. ECO 10 Important Questions by Frequency
Cost sheet, stores ledger pricing and overheads each appeared in four of the six sessions from June 2023 to December 2025; contract account, reconciliation, ABC analysis, idle time and group bonus each appeared in three.
The table lists all 23 topics tracked in the file. We mark a topic High when it appeared in three or more of the six sessions, Medium when it appeared twice and Low when it appeared once. Treat the High rows as your core list of Elements of Costing important questions.
You can check any row against the original papers on our IGNOU Previous Year Question Paper page. After finishing this file, sit one real ECO 10 paper under a 2-hour timer; it shows quickly whether your sums hold up at exam speed.
| Topic | Sessions (of 6) | Most recent | Priority | In the file |
|---|---|---|---|---|
| Cost sheet preparation | 4 | December 2025 | High | Q9 |
| Stores ledger (FIFO or LIFO) | 4 | December 2025 | High | Q8 (Sample 3) |
| Overheads: allocation and absorption | 4 | December 2025 | High | Revise from the book |
| Advantages or objectives of cost accounting | 3 | December 2025 | High | Q1 (Sample 1) |
| Contract account | 3 | December 2025 | High | Q10 (Sample 4) |
| Process versus job costing, normal and abnormal loss | 3 | December 2025 | High | Q11 |
| Time keeping and time booking | 3 | December 2025 | High | Q7 |
| Group bonus and other labour topics | 3 | December 2025 | High | Q7 |
| Inventory turnover ratio and bin card | 3 | December 2025 | High | Q6 |
| Reconciliation of cost and financial accounts | 3 | June 2025 | High | Q12 (Sample 5) |
| ABC analysis of inventory | 3 | June 2025 | High | Q5 (Sample 2) |
| Idle time (short note) | 3 | December 2024 | High | Q7 |
| Process account (two processes) | 2 | December 2025 | Medium | Q11 |
| Centralised and decentralised purchasing | 2 | June 2025 | Medium | Q6 |
| EOQ and stock levels | 2 | December 2024 | Medium | Q13 |
| Cost centre and cost unit | 2 | June 2024 | Medium | Q4 |
| Machine hour rate | 2 | December 2023 | Medium | Revise from the book |
| Classification of cost by variability | 1 | December 2025 | Low | Q4 |
| Factors before installing a costing system | 1 | June 2025 | Low | Q3 |
| Steps in purchase of materials | 1 | December 2024 | Low | Q6 |
| Perpetual inventory system | 1 | December 2024 | Low | Revise from the book |
| Limitations of financial accounting | 1 | June 2023 | Low | Q2 |
| Taylor differential piece rate | 1 | June 2023 | Low | Revise from the book |
5. ECO 10 Syllabus: 4 Blocks and 13 Units
ECO 10 has four blocks and 13 units: Basic Concepts (Units 1 and 2), Materials and Labour (Units 3 to 6), Overheads (Units 7 to 9) and Methods of Costing (Units 10 to 13).
The block names follow the official course listing on eGyanKosh, IGNOU's digital repository. The last column shows which guess paper answer draws on each unit. For chapter-by-chapter reading, keep your ECO 10 Study Material open alongside the file.
| Block | Unit | Key topics to revise | Guess paper answer |
|---|---|---|---|
| Block 1: Basic Concepts | Unit 1: Nature and Scope | Objectives and advantages of costing, cost versus financial accounting, installing a costing system | Q1 (Sample 1), Q2, Q3 |
| Block 1: Basic Concepts | Unit 2: Concept of Cost and Its Ascertainment | Elements of cost, fixed, variable and semi-variable cost, cost centre and cost unit | Q4 |
| Block 2: Materials and Labour | Unit 3: Procurement, Storage and Issue | Centralised and decentralised purchasing, purchase procedure, bin card | Q6 |
| Block 2: Materials and Labour | Unit 4: Inventory Control | Minimum, maximum and re-order levels, EOQ formula, ABC analysis | Q5 (Sample 2), Q13 |
| Block 2: Materials and Labour | Unit 5: Pricing the Issue of Materials | FIFO, LIFO and average price, stores ledger layout | Q8 (Sample 3) |
| Block 2: Materials and Labour | Unit 6: Labour | Time keeping and booking, normal and abnormal idle time, Halsey, Rowan and group bonus | Q7 |
| Block 3: Overheads | Unit 7: Classification and Distribution of Overheads | Allocation versus apportionment, bases such as floor area and machine value | Revise from the course book |
| Block 3: Overheads | Unit 8: Absorption of Factory Overheads | Machine hour rate, labour hour rate, over- and under-absorption | Revise from the course book |
| Block 3: Overheads | Unit 9: Treatment of Other Overheads | Office, administration, selling and distribution overheads | Q9 (cost sheet) |
| Block 4: Methods of Costing | Unit 10: Unit Costing | Prime cost, works cost, cost of production and cost of sales | Q9 |
| Block 4: Methods of Costing | Unit 11: Reconciliation of Cost and Financial Accounts | Items shown only in financial books, depreciation and overhead differences | Q12 (Sample 5) |
| Block 4: Methods of Costing | Unit 12: Job and Contract Costing | Notional profit, work certified and uncertified, the one-third and two-thirds rules | Q10 (Sample 4) |
| Block 4: Methods of Costing | Unit 13: Process Costing | Normal loss at scrap value, abnormal loss, abnormal gain | Q11 |
Units 7 and 8 have no dedicated answer in this file, so give them a separate read from the book, especially machine hour rate.
6. ECO 10 Practical Sums and File Index
ECO 10 has no separate practical file to submit; its "practicals" are the Section B sums. The guess paper solves seven of them, and the index below lists all 13 questions with the page each starts on.
Questions 1, 5, 8, 10 and 12 are the samples shown above. The other eight appear only in the full PDF, and six of those eight are either practical sums or the short notes that fill Section A's spare choice.
| No. | Topic | Block | Section and marks | Page | On this page |
|---|---|---|---|---|---|
| Q1 | Advantages of cost accounting (12 points) | Block 1 | A, 10 | 2 | Sample 1 |
| Q2 | Limitations of financial accounting, with the thermometer example | Block 1 | A, 10 | 2 | Full file |
| Q3 | Eleven factors to weigh before installing a costing system | Block 1 | A, 10 | 3 | Full file |
| Q4 | Fixed, variable and semi-variable cost with comparison table | Block 1 | A, 10 | 4 | Full file |
| Q5 | ABC analysis: categories and six steps | Block 2 | A, 10 | 4 | Sample 2 |
| Q6 | Centralised versus decentralised purchasing, merits and demerits | Block 2 | A, 7 + 3 | 5 | Full file |
| Q7 | Short notes: idle time and group bonus scheme | Block 2 | A, 5 + 5 | 6 | Full file |
| Q8 | Stores ledger account by LIFO, rising prices | Block 2 | B, 15 | 6 | Sample 3 |
| Q9 | Cost sheet from prime cost to cost of sales | Block 4 | B, 15 | 7 | Full file |
| Q10 | Contract account, notional profit and reserve | Block 4 | B, 15 | 8 | Sample 4 |
| Q11 | Process A and B accounts: normal loss, abnormal loss and abnormal gain | Block 4 | B, 15 | 8 | Full file |
| Q12 | Reconciliation statement from financial loss to cost loss | Block 4 | B, 15 | 9 | Sample 5 |
| Q13 | Minimum and maximum stock levels for two components, plus EOQ | Block 2 | B, 10 + 5 | 10 | Full file |
Pages 12 and 13 carry the exam rules, a list of what not to over-prepare, and the six-session frequency grid summarised above.
7. How the ECO 10 Answers Were Prepared and Checked
Every ECO 10 answer was written from the IGNOU course book after mapping six real term-end papers, and every practical was reworked by hand until its totals agreed.
We listed each question asked from June 2023 to December 2025 and tagged it to a block and unit. Topics that kept returning, or that were due back after a gap, became the 13 questions of this IGNOU ECO 10 Guess Paper. Theory answers were then written in the order an examiner reads: definition, numbered points, and a closing line.
For the sums, the test was simple: does it balance? The process B account closes at ₹30,579 on both sides, with abnormal gain of 270 units at about ₹6.77 each. The EOQ works out to exactly 500 kg. If your other commerce electives need the same care, see our B.Com guess Paper collection, built the same way.
8. How to Get the Full ECO 10 File on WhatsApp
Send a WhatsApp message to 9899436384 with the course code ECO 10, and our team shares the price, payment details and the complete 13-page PDF with all 13 answers.
You have seen five answers here, so the full file adds eight more: limitations of financial accounting, installing a costing system, cost classification, purchasing, idle time with group bonus, the cost sheet, the two-process account, and stock levels with EOQ. Four of those eight are Section B sums.
If you are sitting more than one course this term, browse the full IGNOU Solved Guess Paper list and ask for all your codes in one message.
9. ECO 10 Guess Paper FAQs
What does the ECO 10 guess paper contain?
It contains 13 solved questions in a 13-page PDF: six theory answers for Section A and seven practical sums for Section B, including stores ledger, cost sheet, contract, process and reconciliation. Each question shows its block, the sessions in which it last appeared and a length or format target. The last two pages add exam rules and a 23-topic frequency grid.
How many ECO 10 answers are shown as samples on this page?
Five of the 13 answers are shown in full on this page: advantages of cost accounting, ABC analysis, the LIFO stores ledger, the contract account and the reconciliation statement. The remaining eight answers, covering financial accounting limits, costing system installation, cost classification, purchasing, idle time with group bonus, the cost sheet, process accounts and EOQ, are in the paid PDF.
Is the guess paper useful for both B.Com and BDP students?
Yes. ECO 10 Elements of Costing is the same course, with the same term-end pattern, for IGNOU B.Com learners and for those in the Bachelor's Degree Programme taking Elective Commerce. Both groups sit a 2-hour, 50-mark paper with two theory and two practical questions to attempt, so the answers, formats and frequency grid apply equally to each of them.
Which ECO 10 important questions are most likely in December 2026?
No one can promise exact questions, but the pattern is clear. Cost sheet, stores ledger pricing and overheads each appeared in four of six sessions from June 2023 to December 2025. Contract account, reconciliation, ABC analysis, idle time and group bonus each appeared in three. Practise the Section B sums first, because they carry 30 of the 50 marks.
What is the ECO 10 term-end exam pattern?
The ECO 10 paper lasts 2 hours and carries 50 marks. Section A holds theory questions of 10 marks each, sometimes split into 5 + 5 short notes, and you attempt any two. Section B holds practical sums of 15 marks each, and again you attempt any two. Draw every account in proper Dr and Cr format with working notes.
How is the profit on an incomplete contract calculated?
First find notional profit from the contract account. If work certified is under one-fourth of the contract price, no profit is taken. From one-fourth to under half, take one-third of notional profit, reduced by cash received over work certified. From half onwards, take two-thirds on the same cash basis. In the ECO 10 sample, this gives ₹15,000.
How do I get the full ECO 10 Solved Guess Paper?
Message Unnati Educations on WhatsApp at 9899436384 and mention the course code ECO 10. The team replies with the price and payment details, then shares the full 13-page PDF with all 13 solved answers. You can ask for other IGNOU course codes in the same message if you are preparing several papers for the same term-end exam.
Is the ECO 10 guess paper an official IGNOU publication?
No. It is an independent study aid prepared by Unnati Educations from the IGNOU ECO 10 course book and six past term-end papers. It supports your reading of the official material rather than replacing it. For the full text of every unit, use the IGNOU course blocks on eGyanKosh alongside this guess paper while you revise.
10. Who Wrote and Checked the ECO 10 Answers
The ECO 10 answers were written by Prateek Talwar and reviewed by Sheetal Kirola at Unnati Educations.
Prateek Talwar, author. Company Secretary and lead author at Unnati Educations, preparing IGNOU commerce material for learners in Delhi and beyond. LinkedIn · Instagram
Sheetal Kirola, reviewer. Academic Head (M.Ed.) at Unnati Educations, who reviews every IGNOU guess paper for accuracy, syllabus match and exam format. LinkedIn · Instagram · Facebook