BCOE 142 key facts
- Course code: BCOE-142
- Subject: Management Accounting
- Programme: Bachelor of Commerce (General), BCOMG, Semester VI; also listed for BCOMF
- Credits: 6
- Blocks and units: 5 blocks, 19 units
- Maximum marks: 100 (Section A 40, Section B 60)
- Duration: 3 hours
- Questions in the June 2026 paper: 9 (3 in Section A, 6 in Section B)
- Samples solved on this page: 2 (Question 1 and Question 5); all 9 in the paid file
BCOE 142 Solved Question Paper for the June 2026 term-end exam gives you complete, exam-length answers to all 9 questions of IGNOU's Management Accounting paper, written by our commerce team. Two answers are open below so you can judge the quality for yourself; the full file comes on WhatsApp 9899436384.
1. What the June 2026 Solved File Covers
BCOE 142 Management Accounting is a 6-credit discipline-specific course of IGNOU's Bachelor of Commerce (General), BCOMG, studied in the sixth semester under the School of Management Studies.
This solved file starts from the June 2026 term-end paper exactly as IGNOU printed it: 3 questions in Section A, of which you attempt any two, and 6 in Section B, of which you attempt any three. Each question carries 20 marks, and our team wrote a full answer for every one of the 9.
The paper leans on decision tools more than definitions. Two Section B questions are numericals: a two-year P/V ratio problem on Tiwari Ltd. and a ratio problem on XYZ Ltd. built on a stock turnover of 6 times, a 20% gross profit ratio and sales of ₹3,00,000.
The theory side tests cost control, marginal costing, zero-based budgeting, flexible budgets, differential costing, social audit and responsibility accounting. An IGNOU Previous Year Question Paper gives you only the questions; this file gives you the finished answers at the length a 20-mark question needs.
2. Two Answers Solved in Full, Seven Held Back
Two questions are solved in full below, Question 1 from Section A and Question 5 from Section B; the other 7 questions are answered only in the paid file.
We picked one theory answer and one numerical so you can check both styles before you message us. Question numbers and wording are copied exactly as printed on the June 2026 paper.
Cost control: meaning, techniques and significance
Question 1: Define cost control. Discuss its techniques. Explain the significance of cost control in business decisions. (3 + 8 + 9)
Meaning of cost control
Cost control is the process of keeping the actual cost of running a business within limits fixed in advance through standards and budgets. The Institute of Cost and Management Accountants, London, describes it as the regulation, by executive action, of the costs of operating an undertaking, especially where that action is guided by cost accounting.
In practice it works as a cycle of three steps. First, a target is set in the form of a standard cost or a budget. Second, actual costs are recorded and compared with that target. Third, the gap, called a variance, is analysed and the manager responsible takes corrective action so that it does not happen again.
Cost control accepts the standard as the benchmark and tries to meet it. This is how it differs from cost reduction, which questions the standard itself and tries to lower it permanently. Cost control is therefore both preventive, because targets guide spending, and corrective, because variances trigger action.
Techniques of cost control
- Budgetary control: separate budgets are prepared for sales, production, purchases, labour and overheads. Actual results are compared with the budget every month, and flexible budgets adjust the allowance to the actual level of activity so that comparisons stay fair.
- Standard costing and variance analysis: standards are fixed for material, labour and overheads per unit. Material price and usage variances, labour rate and efficiency variances and overhead variances show exactly where money leaked and who is answerable for it.
- Marginal costing: costs are split into fixed and variable. Contribution, the P/V ratio and the break-even point show how cost changes affect profit, so managers can control variable cost per unit and keep fixed cost within its budget.
- Inventory control: tools such as the economic order quantity, ABC analysis, fixed stock levels (maximum, minimum and re-order level) and perpetual inventory keep stock-holding and ordering costs low and prevent pilferage and obsolescence.
- Labour cost control: time and motion study, job evaluation, incentive wage plans and close watch on idle time and labour turnover keep the wage bill linked to actual output.
- Overhead control: overheads are collected by department, compared with overhead budgets and absorbed at predetermined rates, so under-absorbed or over-absorbed amounts are visible quickly.
- Responsibility accounting: the organisation is divided into cost centres, and each manager is held answerable only for the costs they can control. This puts a name against every variance.
- Control reports and ratios: regular reports built on the principle of management by exception, together with ratios such as material cost to sales or labour cost per unit, flag unusual trends early.
Significance of cost control in business decisions
- Pricing decisions: a business that knows its controlled cost per unit can quote competitive prices, bid for tenders and decide how far it can cut prices in a slump without making a loss.
- Profit planning: with selling prices often fixed by the market, every rupee saved on cost adds straight to profit. Cost control protects the margin that the profit plan depends on.
- Make or buy decisions: reliable cost data allow management to compare the cost of making a part in-house with the price of buying it outside, and to decide on outsourcing with confidence.
- Competitive strength: a firm that keeps costs under control can sell at lower prices or offer better quality at the same price, which helps it hold market share against rivals.
- Efficient use of resources: by cutting wastage of material, idle time of labour and unused machine capacity, cost control makes sure that scarce resources are used productively.
- Performance evaluation: variances show which department or manager is doing well and which is not. This supports fair appraisal, rewards and corrective training.
- Better planning: budgets for the next period are built on controlled, realistic cost figures, so plans for expansion, capacity and staffing are more dependable.
- Financial stability: controlled spending keeps cash outflows in line with inflows, reduces the need for costly borrowing and helps the firm survive downturns.
- Special decisions: choices such as accepting an export order, dropping a product line or shutting down temporarily depend on knowing which costs can be controlled or avoided.
Conclusion: cost control turns cost information into action. By setting targets, measuring results and correcting deviations, it keeps costs within limits and gives management the dependable figures it needs for pricing, planning and every major business decision.
Tiwari Ltd.: P/V ratio, fixed costs, break-even sales and margin of safety
Question 5: The following data are given for Tiwari Ltd. Calculate: (i) P/V ratio (ii) Fixed costs (iii) Break-even Sales (iv) Margin of safety at ₹2,000 profit. (20)
2022: Sales ₹60,000, Profit ₹3,000. 2023: Sales ₹50,000, Profit ₹1,000.
Assumption: the selling price per unit, the variable cost per unit and the total fixed cost remain the same in both years, so any change in profit comes only from the change in sales.
(i) P/V ratio
P/V ratio = Change in profit ÷ Change in sales × 100
= (₹3,000 − ₹1,000) ÷ (₹60,000 − ₹50,000) × 100
= ₹2,000 ÷ ₹10,000 × 100 = 20%
(ii) Fixed costs
Contribution in 2022 = Sales × P/V ratio = ₹60,000 × 20% = ₹12,000
Fixed costs = Contribution − Profit = ₹12,000 − ₹3,000 = ₹9,000
Check with 2023: ₹50,000 × 20% = ₹10,000; ₹10,000 − ₹1,000 = ₹9,000, so the figure is consistent.
(iii) Break-even sales
Break-even sales = Fixed costs ÷ P/V ratio = ₹9,000 ÷ 20% = ₹45,000
(iv) Margin of safety at ₹2,000 profit
Sales needed for ₹2,000 profit = (Fixed costs + Desired profit) ÷ P/V ratio = (₹9,000 + ₹2,000) ÷ 20% = ₹55,000
Margin of safety = Required sales − Break-even sales = ₹55,000 − ₹45,000 = ₹10,000
Shortcut check: Margin of safety = Profit ÷ P/V ratio = ₹2,000 ÷ 20% = ₹10,000.
| Requirement | Formula used | Answer |
|---|---|---|
| (i) P/V ratio | Change in profit ÷ change in sales | 20% |
| (ii) Fixed costs | Contribution − profit | ₹9,000 |
| (iii) Break-even sales | Fixed costs ÷ P/V ratio | ₹45,000 |
| (iv) Margin of safety at ₹2,000 profit | Profit ÷ P/V ratio | ₹10,000 (on sales of ₹55,000) |
Interpretation: Tiwari Ltd. earns 20 paise of contribution on every rupee of sales. At ₹55,000 of sales, sales could fall by ₹10,000, or about 18.18% of that level, before the company reaches its break-even point of ₹45,000 and stops making a profit.
3. Questions Answered Only in the Full File
The 7 questions below are listed exactly as printed. Their answers, workings and short notes are available only in the full file.
Question 2 (a): What is marginal costing? Discuss its basic characteristics. (3 + 7)
Question 2 (b): What do you understand by Zero-Based Budgeting (ZBB)? Explain its advantages. (4 + 6)
Question 3: Write short notes on any four of the following. (4 × 5 = 20)
(a) Responsibility Centre
(b) Flexible Budget
(c) Break-Even Point
(d) Trend Analysis
(e) Cost Sheet
(f) Variance Analysis
Question 4 (a): What are financial statements? Describe the tools used for their analysis. (5 + 10)
Question 4 (b): Explain the uses and limitations of fund flow statements. (5)
Question 6 (a): Explain the steps involved in preparing a flexible budget. (10)
Question 6 (b): What do you understand by differential costing? Explain its application. (5 + 5)
Question 7 (a): When conducting a social audit, what are the things a company must do? (10)
Question 7 (b): Explain the importance of performance measurement in Responsibility Accounting. (10)
Question 8 (a): What is CVP analysis? Explain its importance in decision-making. (3 + 7)
Question 8 (b): Explain the application of marginal costing in make-or-buy decisions. (10)
Question 9: The following information is given about XYZ Ltd. for the year ending 31 December 2023. Find out: (a) Average stock (b) Purchases (c) Creditors Turnover Ratio (d) Average Payment Period (e) Average Collection Period (f) Working Capital Turnover Ratio. (20)
(i) Stock Turnover Ratio = 6 times
(ii) Gross Profit Ratio = 20% on sales
(iii) Sales for 2023 = ₹3,00,000
(iv) Closing stock is ₹10,000 more than the opening stock
(v) Opening Creditors = ₹20,000
(vi) Closing Creditors = ₹30,000
(vii) Trade Debtors at the end = ₹60,000
(viii) Net Working Capital = ₹50,000
4. Block and Unit Wise Syllabus
BCOE 142 is taught through 5 blocks and 19 units, moving from cost control and financial statement analysis to budgeting, standard costing, marginal costing and decision making.
The table below follows the block and unit order of the course material and shows which June 2026 questions come from each block, so you can see where the marks sit before you plan revision.
| Block | Units | Topics to master | June 2026 questions |
|---|---|---|---|
| Block 1: Management Accounting, Introduction and Basic Techniques | Units 1 to 4: Management Accounting, An Introduction; Cost Control, Cost Reduction and Cost Management; Understanding Financial Statements; Techniques of Financial Analysis | Cost control versus cost reduction; comparative and trend analysis of statements; ratio analysis such as stock and creditors turnover | Q1 (Sample 1), Q3(d), Q4, Q9 |
| Block 2: Budgeting and Budgetary Control | Units 5 to 8: Budgeting, An Overview; Preparation of Budgets; Approaches to Budgeting; Budgetary Control | Fixed versus flexible budgets; steps in preparing a flexible budget; zero-based and performance budgeting | Q2(b), Q3(b), Q6(a) |
| Block 3: Standard Costing and Variance Analysis | Units 9 to 12: Standard Costing, An Overview; Material Variances; Labour Variances; Overhead Variances | Setting standards; material price, usage and mix variances; labour rate and efficiency variances | Q3(f) |
| Block 4: Marginal Costing and Cost Volume Profit Analysis | Units 13 and 14: Marginal Costing; Cost Volume Profit Analysis | Contribution and P/V ratio; break-even point and margin of safety; marginal versus absorption costing | Q2(a), Q3(c), Q5 (Sample 2), Q8(a) |
| Block 5: Decision Making | Units 15 to 19: Relevant Costs for Decision Making; Pricing Decisions; Responsibility Accounting; Contemporary Issues in Management Accounting I and II | Differential costs and make or buy; cost, profit and investment centres; social audit and social accounting | Q3(a), Q6(b), Q7, Q8(b) |
Blocks 1 and 4 together touch seven of the nine June 2026 questions, so read them first. If you want the unit texts beside you while you revise, keep our BCOE 142 Study Material open with this solved file.
5. Question Paper Pattern and Marks Split
The June 2026 BCOE 142 paper carries 100 marks in 3 hours: Section A gives 40 marks for any two of three questions, and Section B gives 60 marks for any three of six.
| Section | Questions printed | You attempt | Marks each | Section total | What the section tests in June 2026 |
|---|---|---|---|---|---|
| Section A | Q1 to Q3 | Any 2 | 20 | 40 | Cost control, marginal costing with ZBB, and six short-note options from responsibility centre to cost sheet |
| Section B | Q4 to Q9 | Any 3 | 20 | 60 | Financial statement tools, the Tiwari Ltd. P/V problem, flexible budget steps, social audit, CVP with make or buy, and the XYZ Ltd. ratio problem |
| Total | 9 | 5 | 20 | 100 | Two numericals and seven theory or short-note questions |
The June 2026 paper prints 9 questions, one more than the June 2025 and December 2025 papers, which had 8 each. The extra question sits in Section B, so you now choose three out of six rather than three out of five, and the choice is wider.
The term-end exam is not your whole score. IGNOU's 2025 assignment booklet for this course gives the tutor-marked assignment 30% weightage, so the term-end exam carries the rest. If you are preparing several sixth-semester courses together, keep the BCOMG Question Paper set for the same term next to this one to plan your time.
6. Topics That Keep Returning in BCOE 142
Cost control or cost reduction, variance analysis, budgeting and break-even analysis appeared in all 7 official BCOE-142 papers we checked, from December 2022 to December 2025.
We read seven official IGNOU papers from webservices.ignou.ac.in and ignou.ac.in: December 2022, June 2023, December 2023, June 2024, December 2024, June 2025 and December 2025. Papers before December 2022 are not counted. A topic scores once per session, whether it came as a long question, a numerical or a short note.
| Topic | Sessions where it appeared | Count (of 7) | Where it sits in June 2026 |
|---|---|---|---|
| Cost control, cost reduction or cost management | Dec 2022, Jun 2023, Dec 2023, Jun 2024, Dec 2024, Jun 2025, Dec 2025 | 7 | Q1 (Sample 1) |
| Variance analysis (material, labour or overhead) | Dec 2022, Jun 2023, Dec 2023, Jun 2024, Dec 2024, Jun 2025, Dec 2025 | 7 | Q3(f) |
| Budgeting and budgetary control (cash, master, sales or overhead budgets) | Dec 2022, Jun 2023, Dec 2023, Jun 2024, Dec 2024, Jun 2025, Dec 2025 | 7 | Q2(b), Q3(b), Q6(a) |
| Break-even point, margin of safety or P/V ratio | Dec 2022, Jun 2023, Dec 2023, Jun 2024, Dec 2024, Jun 2025, Dec 2025 | 7 | Q3(c), Q5 (Sample 2), Q8(a) |
| Marginal costing (theory, income statement or managerial uses) | Dec 2022, Jun 2023, Jun 2024, Dec 2024, Jun 2025, Dec 2025 | 6 | Q2(a), Q8(b) |
| Ratio analysis (liquidity, turnover, gearing or activity ratios) | Dec 2022, Jun 2023, Dec 2023, Dec 2024, Jun 2025, Dec 2025 | 6 | Q9 |
| Responsibility accounting or responsibility centres | Jun 2023, Jun 2024, Dec 2024, Jun 2025, Dec 2025 | 5 | Q3(a), Q7(b) |
| Two-year sales and profit P/V numerical (same format as Q5) | Jun 2023, Jun 2025, Dec 2025 | 3 | Q5 (Sample 2) |
| Make or buy decision | Dec 2022, Jun 2023, Jun 2024 | 3 | Q8(b) |
| Financial statements: nature, uses and limitations | Jun 2024, Jun 2025, Dec 2025 | 3 | Q4(a) |
| Social audit or social accounting | Jun 2024, Dec 2024, Dec 2025 | 3 | Q7(a) |
| Flexible budget | Jun 2023, Jun 2024 | 2 | Q3(b), Q6(a) |
| Zero-based budgeting | Dec 2022 | 1 | Q2(b) |
| Trend analysis | Jun 2023 | 1 | Q3(d) |
| Fund flow statement, differential costing (by name) or cost sheet | None of the 7 papers | 0 | Q4(b), Q6(b), Q3(e) |
Two lessons stand out. The Tiwari Ltd. problem follows the same two-year sales and profit format used for Sanjay Ltd. in June 2025 and Dhruwa Ketu Ltd. in December 2025, so this numerical style is now a habit of the paper setter.
At the same time, fund flow statements, differential costing and the cost sheet had no question in any of the seven earlier papers. Students who revised only from old papers met these cold in June 2026, which is exactly where a complete solved file helps.
For a wider list of likely questions across courses, see our IGNOU Solved Guess Paper page, and use this table to decide which BCOE 142 areas to revise twice.
7. How Our Answers Are Written and Checked
Each BCOE 142 answer is written by a commerce subject expert, split to the mark scheme printed on the paper, and checked line by line before it goes into the file.
Before writing, the team studied the seven earlier BCOE-142 papers listed above, so the file flags which June 2026 topics are repeats and which are new.
Numericals always show the formula first, then the figures, then a check line. In Question 5 above, for example, fixed cost is worked out from 2022 and then re-checked against 2023. Amounts use the Indian digit grouping, such as ₹3,00,000, just as the paper prints them.
Theory answers use sub-headings that match the printed split, such as 3 + 8 + 9 in Question 1 or 5 + 10 in Question 4(a). Terms are kept in line with the official BCOE-142 course page on eGyanKosh, so the vocabulary matches what examiners read in the course units.
Because this solved question paper is built from the official June 2026 question sheet, nothing in it is guessed. Every answer responds to a question that was actually asked, in the order it was asked.
8. Question Wise Solved File Index
BCOE 142 is a theory course with no practical or record work, so in place of a practical file index here is the solved file index: all 9 questions, their course units and where each answer is available.
| Question | Topic | Course unit | Answer |
|---|---|---|---|
| Q1 | Cost control: meaning, techniques, significance | Unit 2 | Sample 1 above |
| Q2 | (a) Marginal costing characteristics; (b) Zero-based budgeting advantages | Units 13 and 7 | Full file |
| Q3 | Short notes: responsibility centre, flexible budget, break-even point, trend analysis, cost sheet, variance analysis | Units 17, 6, 14, 4 and 9 to 12 | Full file |
| Q4 | (a) Financial statements and tools of analysis; (b) Uses and limitations of fund flow statements | Units 3 and 4 | Full file |
| Q5 | Tiwari Ltd.: P/V ratio, fixed costs, break-even sales, margin of safety | Unit 14 | Sample 2 above |
| Q6 | (a) Steps in preparing a flexible budget; (b) Differential costing and its application | Units 6 and 15 | Full file |
| Q7 | (a) Conducting a social audit; (b) Performance measurement in responsibility accounting | Units 18 and 19; Unit 17 | Full file |
| Q8 | (a) CVP analysis in decision-making; (b) Marginal costing in make or buy decisions | Unit 14; Units 13 and 15 | Full file |
| Q9 | XYZ Ltd.: stock, creditors, debtors and working capital ratios | Unit 4 | Full file |
In total, 2 answers are on this page and 7 are in the full file only, which makes 9 solved questions.
9. Programmes That Include BCOE 142
BCOE 142 Management Accounting is a sixth-semester, 6-credit discipline-specific course in IGNOU's B.Com (General), and the same course code is listed for other commerce and business programmes.
In the IGNOU Bachelor of Commerce (BCOMG) programme, BCOE-142 is one of the 6-credit discipline-specific courses, listed alongside BCOE-144 Office Management and Secretarial Practice, and IGNOU's assignment booklet for the course places it in the sixth semester.
The B.Com (Honours) BCOMF programme guide of 2025 also lists BCOE-142 Management Accounting among its discipline-specific courses. If your hall ticket shows BCOE-142 under any other commerce or business programme, check your own programme guide for the semester, because the term-end paper is the same.
10. How to Get the Full Solved Question Paper
Send "BCOE 142 June 2026" on WhatsApp to 9899436384 and we share the full solved question paper PDF with answers to all 9 questions.
The file contains the 7 answers that are not shown here, covering marginal costing, ZBB, the short notes, fund flow, flexible budget steps, differential costing, social audit, CVP with make or buy and the XYZ Ltd. ratio problem, plus the 2 answers you have already read.
Tell us your programme when you message, and our team confirms the price and payment details on the same chat. The PDF reaches you on WhatsApp as soon as payment is confirmed.
11. BCOE 142 Management Accounting FAQs
These answers cover the questions students ask us most often about the BCOE 142 Management Accounting June 2026 solved file.
What is included in the Solved Question Paper for June 2026?
It includes complete answers to all 9 questions of the June 2026 BCOE-142 Management Accounting paper. That covers the three Section A questions, including every short-note option in Question 3, and the six Section B questions with full numerical workings for Tiwari Ltd. and XYZ Ltd. Two of those answers are open on this page; the remaining 7 come only in the full PDF.
How do I get the full solved file on WhatsApp?
Send a message saying BCOE 142 June 2026 to WhatsApp 9899436384. Our team replies with the price and payment details, and once payment is confirmed you receive the PDF on the same chat. The file holds answers to all 9 questions: the 2 you can read here plus the 7 that are listed on this page only as question text.
Which questions are solved in full on this page?
Question 1 and Question 5 are solved in full. Question 1 is the 20-mark Section A theory question on the meaning, techniques and significance of cost control. Question 5 is the Section B numerical on Tiwari Ltd., where we work out the P/V ratio, fixed costs, break-even sales and margin of safety. The other 7 questions appear as printed text, with answers in the file.
What is the pattern of the June 2026 question paper?
The paper runs for 3 hours and carries 100 marks. Section A has 3 questions, you answer any two, and it carries 40 marks. Section B has 6 questions, you answer any three, and it carries 60 marks. All questions carry 20 marks each, so a complete attempt means five answers of roughly equal length and depth.
Which BCOE 142 topics repeat most often?
Across the seven official papers from December 2022 to December 2025, four areas appeared every single time: cost control or cost reduction, variance analysis, budgeting, and break-even or P/V analysis. Marginal costing and ratio analysis each appeared in six of the seven papers. The June 2026 paper keeps all six of these areas, so they deserve the most revision time.
Is BCOE 142 mostly theory or numericals?
It is a mix. In June 2026, two of the nine questions are pure numericals, the Tiwari Ltd. P/V ratio problem and the XYZ Ltd. ratio problem, and both sit in Section B. The rest are theory questions and short notes. Many students pick one numerical in Section B because a correct working often scores more reliably than a long essay.
Which IGNOU programmes study BCOE 142?
BCOE-142 is a 6-credit discipline-specific course in the IGNOU Bachelor of Commerce (General), BCOMG, where it is studied in the sixth semester. The same course also appears among the discipline-specific courses of the B.Com (Honours) BCOMF programme guide. If you study it under another programme, check your programme guide, because the semester can differ.
Who writes and checks the BCOE 142 answers?
Answers are written by the Unnati Educations commerce team led by Prateek Talwar and reviewed by Sheetal Kirola before release. Numericals show every formula and a check line, and theory answers follow the mark split printed on the paper. Each answer is also checked against the relevant BCOE-142 unit so the terms match what IGNOU examiners expect to see.
12. Who Wrote and Checked the BCOE 142 Answers
The BCOE 142 answers were written by Prateek Talwar and the Unnati Educations commerce team, and reviewed by Sheetal Kirola.
Prateek Talwar is a Company Secretary who prepares IGNOU commerce solved papers from the course blocks and the official term-end paper. Sheetal Kirola, Academic Head (M.Ed.), re-works every formula and check line in the numericals and matches each theory answer to the mark split printed on the paper.