ECO 10 Solved Question Paper for the June 2026 term-end exam covers all 7 questions IGNOU printed for Elements of Costing, from centralised purchasing theory to the machine hour rate, process accounts and a FIFO stores ledger. Two answers are open on this page so you can judge the quality. The full file with all 7 answers is shared on WhatsApp 9899436384.
ECO 10 Elements of Costing key facts for the June 2026 paper
- Course code: ECO 10 (printed as ECO–010 on the June 2026 paper)
- Subject: Elements of Costing (Elective Course: Commerce)
- Programme: Old Syllabus / BDP elective: B.Com (old syllabus) and BA with Commerce elective, offered by the School of Management Studies (SOMS)
- Credits: 4
- Blocks and units: 4 blocks, 13 units
- Maximum marks: 50
- Duration: 2 hours
- Questions in the paper: 7 (Section A: 3, Section B: 4)
- Solved samples on this page: 2 (Question 2 and Question 6)
- Questions in the paid file: All 7, including the 5 not answered on this page
What the ECO 10 Solved Question Paper June 2026 Covers
ECO 10 Elements of Costing is the IGNOU cost accounting course in the Bachelor's Degree Programme (BDP), taken as an Old Syllabus / BDP Commerce elective by B.Com (old syllabus) and BA learners. It teaches how a firm finds the cost of a unit, a job, a contract or a process.
The June 2026 paper tested that range evenly. Section A asked for factors before installing a costing system, the merits of centralised purchasing, and short notes on inventory turnover ratio, process costing, purchase order and bin card. Section B asked four numericals: machine hour rate, three process accounts, a FIFO stores ledger and contract account treatments.
Our file answers every one of those 7 questions in the printed order. If you also want older sessions to practise from, our IGNOU Previous Year Question Paper collection is the next place to look.
ECO 10 Elements of Costing Sample Answers and Unsolved Question List
Two June 2026 ECO 10 questions are solved in full below: Question 2 from Section A and Question 6 from Section B. The remaining 5 questions follow as printed, with answers only in the full file.
Question 2 (Section A, 6+4 marks)
2. Discuss the advantages and disadvantage of centralised purchasing. 6+4
Answer
Meaning: Centralised purchasing means that one purchase department buys all the materials required by every department, factory or branch of the firm. Departments send purchase requisitions to this department, which selects suppliers, places purchase orders and keeps the purchase records for the whole concern.
Advantages of centralised purchasing (6 marks)
- Economies of bulk buying: Requirements of all departments are pooled, so the firm buys in larger lots and earns quantity discounts, lower freight per unit and better credit terms.
- Specialised buying staff: Purchasing is handled by trained people who know markets, prices and suppliers, so the quality of buying decisions improves.
- Uniform quality and standard materials: One department follows one specification for each item, which reduces variety and makes inspection and storage simpler.
- No duplication of work: Separate buying cells in each department are avoided, which saves clerical work, stationery and staff cost.
- Better control over stock: All purchase records sit in one place, so stock levels, re-order points and spending can be watched closely and excess stock or shortages are avoided.
- Stronger supplier relations: A single large buyer gets more attention from suppliers, better after-sales service and more bargaining power during price changes.
Disadvantages of centralised purchasing (4 marks)
- Delay in urgent purchases: Every requisition must pass through the central department, so emergency needs of a branch or shop may wait because of formalities.
- Higher fixed cost: A separate purchase department with its own staff and records adds overheads that a small concern may not justify.
- Local needs may be ignored: Branches far from head office may need special items or local suppliers, which a distant department may not understand well.
- Risk of large mistakes: Since buying is in bulk, one wrong decision on quality, price or quantity affects all departments together.
Conclusion: Centralised purchasing suits a firm whose plants are close together and whose materials are standard. A firm with widely spread branches often keeps central control of policy and big items, while letting branches buy small or urgent items locally.
Question 6 (Section B, 15 marks)
6. The following are the purchases and issues of a certain material during June, 2025.
ECO 10 June 2026 Question 6 data: purchases and issues in June 2025 (as printed) Year 2025 Transaction Details 1 June Opening stock 500 units @ ₹ 5 each 3 June Issued 300 units 5 June Issued 150 units 8 June Purchased 200 units @ ₹ 5.10 each 9 June Returned from Dept.-A 20 units 10 June Issued 100 units 12 June Purchased 300 units @ ₹ 4.90 each 14 June Issued 200 units All the issues are priced at FIFO (First in First Out) method. On June 11th stock verification reveals a loss of 10 units from the purchased stock on 8-6-2025. Prepare Stores Ledger. 15
Answer
Working assumptions: (1) The 20 units returned by Dept.-A on 9 June came out of the ₹ 5 lot issued on 3 and 5 June, so they are received back at ₹ 5. Being at the same rate as the oldest lot still in store, they join that lot and are issued first under FIFO. (2) The 10 units lost on 11 June are taken from the 8 June lot at ₹ 5.10, as the question states.
| Date | Particulars | Receipt Qty | Receipt Rate ₹ | Receipt Amount ₹ | Issue Qty | Issue Rate ₹ | Issue Amount ₹ | Balance Qty | Balance Rate ₹ | Balance Amount ₹ |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 June | Opening stock | — | — | — | — | — | — | 500 | 5.00 | 2,500 |
| 3 June | Issue | — | — | — | 300 | 5.00 | 1,500 | 200 | 5.00 | 1,000 |
| 5 June | Issue | — | — | — | 150 | 5.00 | 750 | 50 | 5.00 | 250 |
| 8 June | Purchase | 200 | 5.10 | 1,020 | — | — | — | 50 | 5.00 | 250 |
| 8 June | Balance: purchased lot | — | — | — | — | — | — | 200 | 5.10 | 1,020 |
| 9 June | Returned from Dept.-A | 20 | 5.00 | 100 | — | — | — | 70 | 5.00 | 350 |
| 9 June | Balance: purchased lot | — | — | — | — | — | — | 200 | 5.10 | 1,020 |
| 10 June | Issue | — | — | — | 70 | 5.00 | 350 | 170 | 5.10 | 867 |
| 10 June | Issue: second lot | — | — | — | 30 | 5.10 | 153 | — | — | — |
| 11 June | Shortage (stock verification) | — | — | — | 10 | 5.10 | 51 | 160 | 5.10 | 816 |
| 12 June | Purchase | 300 | 4.90 | 1,470 | — | — | — | 160 | 5.10 | 816 |
| 12 June | Balance: purchased lot | — | — | — | — | — | — | 300 | 4.90 | 1,470 |
| 14 June | Issue | — | — | — | 160 | 5.10 | 816 | 260 | 4.90 | 1,274 |
| 14 June | Issue: second lot | — | — | — | 40 | 4.90 | 196 | — | — | — |
Check of the ledger: Opening stock ₹ 2,500 plus receipts of 520 units worth ₹ 2,590 (₹ 1,020 + ₹ 100 + ₹ 1,470) gives ₹ 5,090. Issues and shortage total 760 units worth ₹ 3,816 (₹ 1,500 + ₹ 750 + ₹ 503 + ₹ 51 + ₹ 1,012). Closing stock is therefore 260 units worth ₹ 1,274, all at ₹ 4.90, which matches the last balance.
Treatment of the shortage: The 10 units lost (₹ 51) are written off from the stores ledger on 11 June. If the loss is within the normal limit for this material, it is charged to factory overheads; if it is abnormal, as a loss found on verification usually is, it is transferred to the Costing Profit and Loss Account so that product cost is not inflated.
Treatment of the return: Material returned by a department is shown in the receipts column, not as a negative issue, and is priced at the rate at which it was originally issued. This keeps the department's charge correct and the store balance in line with physical stock.
Want the other 5 June 2026 answers, including the full machine hour rate and the three process accounts? Message us on WhatsApp 9899436384 with the code ECO 10.
Get ECO 10 Full File on WhatsAppQuestions answered only in the full file
The questions below are reproduced exactly as printed in the June 2026 ECO 10 paper. Their answers are not shown on this page.
1. What are the factors to be considered before installation of a system of costing ? 10
3. Write a short notes on any two of the following : 5+5
- (a) Inventory Turnover Ratio
- (b) Process Costing
- (c) Purchase Order
- (d) Bin Card
4. Compute Machine Hair Rate from the following data :
- (i) Total Machine hours worked p.a. 4,400 hrs.
- (ii) Setting up time 000 hrs.
- (iii) Expenses for the machine p.a. : Rent ₹ 12,000; Lighting ₹ 1,200; Rapairs ₹ 2,400; Supervision ₹ 4,800
- (iv) Two attendants looking after 4 machines were paid ₹ 120 p.m each.
- (v) Power consumption by the machine 10 units per hour @ ₹ 40 per 100 units.
- (vi) Cost of the machine ₹ 17,200.
- (vii) Scrap value ₹ 1,200.
- (viii) Life period of the machine 16,000 hrs.
Sundry supplies for the machine shop are ₹ 480 p.m. There are 4 identical machines in the machine shop. Supervisor is expected to devote his time equally for all the machines. 15
5. Product ‘Y’ is obtained after it passes through three distinct processes. The following information is obtained from the accounts for the month ending December 31st, 2024.
| Items | Total (₹) | Process I (₹) | Process II (₹) | Process III (₹) |
|---|---|---|---|---|
| Direct Material | 7,542 | 2,600 | 1,980 | 2,962 |
| Direct Wages | 9,000 | 2,000 | 3,000 | 4,000 |
| Overheads | 9,000 | — | — | — |
Overheads are recovered at 100% of direct wages. 1,000 units @ ₹ 3 each were introduced to process–I. The output of each process passes direct to the next process and finally to finished stores. The following additional data is obtained :
| Process | Output | % of normal loss | Value (₹) |
|---|---|---|---|
| Process-I | 950 | 5% | 2 |
| Process-II | 840 | 10% | 4 |
| Process-III | 750 | 15% | 5 |
Prepare Process Cost Accounts. 15
7. Indicate how you would deal with the following in contract account : 15
- (a) Plant and machinery specially purchased for a contract.
- (b) Loss of materials stolen or destroyed.
- (c) Sub-contracting.
Question 4 alone hides three traps: the printed setting-up time, the attendants shared across 4 machines, and the depreciation base after scrap. Question 5 turns on abnormal loss and abnormal gain in different processes. Both are worked line by line in the full file.
ECO 10 Elements of Costing Block and Unit Syllabus
ECO 10 Elements of Costing is taught through 4 blocks and 13 units, moving from basic cost concepts to materials, labour, overheads and finally methods of costing. The table maps each unit to the exam question it feeds.
| Block | Unit | Key topics in the unit | Exam link (June 2026 or last seen) |
|---|---|---|---|
| Block 1 Basic Concepts | Unit 1 Nature and Scope | Limitations of financial accounting; cost versus financial accounting; installing a costing system | June 2026 Q1 (installation factors) |
| Block 1 Basic Concepts | Unit 2 Concept of Cost and its Ascertainment | Cost unit and cost centre; classification by variability; elements of cost | Cost classification by variability, December 2025 Q2 |
| Block 2 Materials and Labour | Unit 3 Procurement, Storage and Issue | Centralised and decentralised purchasing; purchase order; bin card | June 2026 Q2 (sample), Q3(c) and Q3(d) |
| Block 2 Materials and Labour | Unit 4 Inventory Control | Re-order, minimum and maximum levels; EOQ; ABC analysis and inventory turnover ratio | June 2026 Q3(a) (inventory turnover ratio) |
| Block 2 Materials and Labour | Unit 5 Pricing the Issue of Materials | FIFO and LIFO pricing; materials returned to store; shortages found on verification | June 2026 Q6 (sample stores ledger) |
| Block 2 Materials and Labour | Unit 6 Labour | Time keeping and time booking; idle time and overtime; Taylor's differential piece rate and group bonus | Time keeping and group bonus scheme, December 2025 Q3(c) and Q3(d) |
| Block 3 Overheads | Unit 7 Classification and Distribution of Overheads | Behaviourwise classification; allocation; apportionment to production departments | Behaviourwise classification of overheads, December 2024 Q3(d) |
| Block 3 Overheads | Unit 8 Absorption of Factory Overheads | Machine hour rate; labour hour and percentage rates; under and over absorption | June 2026 Q4 (machine hour rate) |
| Block 3 Overheads | Unit 9 Treatment of Other Overheads | Administration overheads; selling and distribution overheads; their place in cost of sales | Administrative overheads at 20% of works cost, June 2025 Q5 |
| Block 4 Methods of Costing | Unit 10 Unit Costing | Cost sheet layout; prime cost to cost of sales; cost per unit | Cost sheet with opening and closing stocks, June 2024 Q4 |
| Block 4 Methods of Costing | Unit 11 Reconciliation of Cost and Financial Accounts | Reasons for difference in profit; reconciliation statement; memorandum reconciliation account | Reconciliation from a net loss of ₹ 57,320, June 2025 Q6 |
| Block 4 Methods of Costing | Unit 12 Job and Contract Costing | Work certified and uncertified; plant charged to contracts; profit on incomplete contracts | June 2026 Q7 (contract account treatments) |
| Block 4 Methods of Costing | Unit 13 Process Costing | Normal loss and scrap value; abnormal loss and abnormal gain; process accounts | June 2026 Q3(b) and Q5 (three process accounts) |
Block 2 alone feeds 4 of the 7 June 2026 questions, so it deserves the most revision time. Our ECO 10 Study Material follows the same block order if you want unit notes before attempting the paper.
Unit titles follow IGNOU's official self-learning material for ECO 10, which you can open on the eGyanKosh page for Block 4 Methods of Costing.
ECO 10 Question Paper Pattern and Marks in June 2026
The June 2026 ECO 10 Question Paper had 7 questions in two sections, and you answer 4 of them in 2 hours for 50 marks. Section B carried four numericals this time, one more than in the three previous sessions.
| Section | Questions printed | Attempt | Marks each | Marks counted | June 2026 question types |
|---|---|---|---|---|---|
| Section A | Q1 to Q3 | Any 2 | 10 (Q2 split 6+4, Q3 split 5+5) | 20 | Costing system installation, centralised purchasing, four short notes |
| Section B | Q4 to Q7 | Any 2 | 15 | 30 | Machine hour rate, process accounts, FIFO stores ledger, contract account treatments |
| Total | 7 questions | 4 answers | Mixed | 50 | Theory 40% and numericals 60% of the marks you write |
The term-end exam is one part of your result. IGNOU's ECO 10 assignment brief gives the tutor-marked assignment 30% weightage, so the exam carries the remaining 70%, and assignment submission is compulsory before you can sit the paper.
The IGNOU ECO 10 Question Paper for June 2026 also printed the code as ECO–010 rather than ECO–10, and older copies use the hyphenated ECO-10 Elements of Costing. Students comparing it with other BCOM Question Paper sets should search both spellings when looking for official copies.
Most Repeated ECO 10 Topics in Official IGNOU Papers
The stores ledger and the objectives or advantages of cost accounting are the most repeated ECO 10 topics, each appearing in 5 of the 8 official papers we checked. Labour topics appeared in 7 papers but were missing from June 2026.
We counted topics across eight official IGNOU papers: December 2020, June 2021, December 2021, December 2022, June 2024, December 2024, June 2025 and December 2025. June 2022, June 2023 and December 2023 could not be located on IGNOU's sites, so they are not counted.
| Topic | Sessions where it appeared | Count (of 8) | In June 2026? |
|---|---|---|---|
| Labour: wage systems, group bonus, idle time, overtime, labour turnover | Dec 2020, Jun 2021, Dec 2021, Dec 2022, Jun 2024, Dec 2024, Dec 2025 | 7 | No |
| Stores ledger under FIFO or LIFO | Dec 2020, Jun 2021, Dec 2024, Jun 2025, Dec 2025 | 5 | Yes, Q6 |
| Objectives or advantages of cost accounting | Dec 2020, Jun 2021, Dec 2021, Dec 2024, Dec 2025 | 5 | No |
| Process costing (accounts or theory) | Dec 2021, Dec 2022, Jun 2024, Dec 2025 | 4 | Yes, Q3(b) and Q5 |
| Contract costing (account, profit or short note) | Dec 2020, Jun 2021, Dec 2024, Dec 2025 | 4 | Yes, Q7 |
| Reconciliation of cost and financial accounts | Dec 2020, Dec 2021, Jun 2024, Jun 2025 | 4 | No |
| Cost sheet | Dec 2022, Jun 2024, Jun 2025, Dec 2025 | 4 | No |
| Under or over absorption of overheads | Jun 2021, Dec 2022, Jun 2025, Dec 2025 | 4 | No |
| Purchasing system (centralised, decentralised, purchase steps) | Jun 2021, Dec 2024, Jun 2025 | 3 | Yes, Q2 |
| Bin card | Dec 2021, Jun 2024, Dec 2025 | 3 | Yes, Q3(d) |
| ABC analysis | Dec 2021, Jun 2024, Jun 2025 | 3 | No |
| Classification of cost by variability or behaviour | Dec 2022, Dec 2024, Dec 2025 | 3 | No |
| Factors before installing a costing system | Dec 2021, Jun 2025 | 2 | Yes, Q1 |
| Machine hour rate | Dec 2021, Dec 2022 | 2 | Yes, Q4 |
| Purchase order | Dec 2020, Dec 2022 | 2 | Yes, Q3(c) |
| Inventory turnover ratio | Dec 2024 | 1 | Yes, Q3(a) |
One finding stands out: June 2026 Question 5 uses exactly the same figures as December 2021 Question 5, with Product ‘Z’ renamed Product ‘Y’. Students who had practised that old numerical walked in with the answer ready.
Labour has skipped only one session in this set, so it is a strong bet for December 2026. For a ranked list of likely questions, see our IGNOU Important Questions page.
How Our ECO 10 Costing Answers Are Written and Checked
Every ECO 10 answer in our file is written to the marks printed against it and then re-totalled by a second person before release. Costing numericals lose marks on arithmetic, so the checking step matters as much as the writing.
Theory answers open with a one-line meaning, follow the split of marks the paper prints (for example 6 for advantages and 4 for disadvantages in Question 2), and close with a short conclusion. Short notes of 5 marks stay focused on the term asked, with one practical example.
Numericals use the IGNOU layouts from the course units: receipt, issue and balance columns for stores ledgers, debit and credit sides for process and contract accounts, and a rate-per-hour statement for machine hour rate. Any assumption, such as the rate for returned material, is written as a working note.
The IGNOU ECO 10 Solved Question Paper was written by Prateek Talwar with the Unnati Educations commerce team and reviewed by Sheetal Kirola. Before release, each ledger balance and process total is matched back to the question data.
ECO 10 Solved File Index Question by Question
The full ECO 10 file has 7 solved questions: 2 are open on this page and 5 are in the paid file only. Use this index to see which unit each answer draws on.
| Q No. | Question (short form) | Section and marks | Course unit | Answer location |
|---|---|---|---|---|
| 1 | Factors before installation of a costing system | A, 10 | Unit 1 Nature and Scope | Full file only |
| 2 | Advantages and disadvantages of centralised purchasing | A, 6+4 | Unit 3 Procurement, Storage and Issue | On this page |
| 3 | Short notes: inventory turnover ratio, process costing, purchase order, bin card | A, 5+5 | Units 3, 4 and 13 | Full file only (all four notes) |
| 4 | Machine hour rate for one of 4 identical machines | B, 15 | Unit 8 Absorption of Factory Overheads | Full file only |
| 5 | Process I, II and III accounts for Product Y | B, 15 | Unit 13 Process Costing | Full file only |
| 6 | Stores ledger under FIFO with a return and a shortage | B, 15 | Unit 5 Pricing the Issue of Materials | On this page |
| 7 | Plant, lost materials and sub-contracting in contract account | B, 15 | Unit 12 Job and Contract Costing | Full file only |
Because Question 3 lets you choose any two of four notes, the file answers all four, so you can practise whichever pair you would pick in the hall.
Programmes That Include ECO 10 Elements of Costing
ECO 10 Elements of Costing is a Commerce elective under IGNOU's Bachelor's Degree Programme (BDP), studied in the second year of the old B.Com scheme. The June 2026 paper itself is headed "Bachelor's Degree Programme (BDP), Elective Course: Commerce".
- Bachelor of Commerce (Old B.Com Syllabus): ECO 10 sits in the second-year course list on eGyanKosh, alongside ECO 11 and ECO 12.
- Bachelor of Arts (BA) under BDP: learners who chose the Commerce elective group take ECO 10, run by the School of Management Studies (SOMS), with the same 4-credit paper and 50 marks.
Learners on the newer CBCS B.Com (BCOMG) study cost accounting through BCOC 138 instead, which has a different paper and structure, so make sure your hall ticket says ECO 10 before using this file.
How to Get the Full ECO 10 Solved Question Paper on WhatsApp
Message WhatsApp 9899436384 with "ECO 10 June 2026" and our team will share the price and send the complete solved PDF after payment. The file covers all 7 questions, including the 5 not answered on this page.
- Open WhatsApp and message 9899436384 with the course code ECO 10 and the session June 2026.
- Our team confirms the file details and the price.
- After payment, you receive the solved PDF on the same chat.
The ECO 10 Solved Question Paper suits learners sitting the December 2026 exam who want to see how each June 2026 numerical was laid out, and those who missed Section B marks last time.
ECO 10 Elements of Costing FAQs
These answers cover the June 2026 ECO 10 paper, the full file and how the course is examined.
Which ECO 10 Elements of Costing questions are fully solved on this page?
Two questions are solved in full on this page: Question 2 on the advantages and disadvantages of centralised purchasing, and Question 6, the FIFO stores ledger with a returned lot and a stock shortage. The other five questions from the June 2026 paper are listed as printed, without answers. Their complete solutions, including the machine hour rate and process accounts, sit only in the full file.
How do I get the complete ECO 10 Elements of Costing solved file on WhatsApp?
Send a message to WhatsApp 9899436384 with the course code ECO 10 and the session June 2026. Our team will confirm the price and share the PDF once payment is done. The file carries complete answers to all 7 questions in the paper: the 2 shown here plus the 5 listed on this page without answers, each written to its printed marks.
Did the June 2026 ECO 10 paper repeat any older IGNOU question?
Yes. Question 5, the three-process account for Product Y, uses the same figures as Question 5 of the December 2021 ECO 10 paper, where the product was called Z. Question 1 on factors before installing a costing system also appeared in December 2021 and June 2025. This is why we tell students to practise old numericals line by line, not just read theory.
How many questions must I attempt in the ECO 10 Elements of Costing exam?
You attempt four questions in two hours for 50 marks. Pick any two of the three theory questions in Section A, worth 10 marks each, and any two of the four numerical questions in Section B, worth 15 marks each. The June 2026 paper gave four choices in Section B, one more than the three offered in each paper from December 2024 to December 2025.
Which ECO 10 numericals come up most often in the term-end exam?
Across the eight official papers we checked, from December 2020 to December 2025, the stores ledger under FIFO or LIFO appeared five times. Process accounts, contract accounts, reconciliation of cost and financial accounts and the cost sheet appeared four times each. Machine hour rate came twice. June 2026 then asked a stores ledger, process accounts, machine hour rate and contract account together.
Are the ECO 10 answers based on the IGNOU study blocks?
Yes. Every answer follows the terms, formats and layouts used in the four ECO 10 blocks: Basic Concepts, Materials and Labour, Overheads, and Methods of Costing. Stores ledgers use the receipt, issue and balance columns from Unit 5, and contract accounts follow Unit 12. That way an IGNOU examiner sees the method taught in the course, not a shortcut from another syllabus.
Why does the June 2026 ECO 10 paper look different from earlier ones?
Two changes stand out. The code is printed as ECO–010 instead of ECO–10, and the paper has seven questions instead of six, because Section B now offers four numericals. The rule is unchanged: attempt two from each section. Our solved file follows the June 2026 numbering exactly, so you can match every answer to the printed question without any confusion.
Who wrote and checked the ECO 10 Elements of Costing solved answers?
The answers were written by Prateek Talwar with the Unnati Educations commerce team and reviewed by Sheetal Kirola before release. Every numerical is re-totalled, so the stores ledger balance, process account totals and machine hour rate all tie back to the figures in the question. Any assumption, such as how returned material is priced, is stated in a short working note.