IGNOU MTTM 5 Free Solved Assignment 2022-23 , IGNOU MMTM 5 ACCOUNTING AND FINANCE FOR MANAGERS IN TOURISM Free Solved Assignment 2022-23 If you are interested in pursuing a course in radio production and direction, IGNOU MTTM 5 can be an excellent choice. In this article, we will take a closer look at what IGNOU MTTM 5 is all about and what you can expect to learn from this course.

IGNOU MTTM 5 is a course offered by the Indira Gandhi National Open University (IGNOU) under the School of Journalism and New Media Studies. As the name suggests, it is a course on “Production and Direction for Radio.” The course is designed to provide students with a comprehensive understanding of radio production and direction and covers various topics related to this field.

IGNOU MTTM 5 Free Solved Assignment 2022-23

---

1. Define the term ‘accounting’ and explain its scope. Elaborate the role and activities of an accountant in an organisation.

Accounting is a process of recording, summarizing, and interpreting financial transactions of an entity. It is a system that helps businesses and individuals to keep track of their financial activities and communicate the financial information to relevant stakeholders. The primary purpose of accounting is to provide accurate and reliable financial information to enable decision-making.

The scope of accounting covers various aspects of financial management, such as bookkeeping, financial reporting, auditing, tax planning, budgeting, and analysis. It is an essential function in any business or organization, whether it is a small enterprise or a large corporation. The main areas of accounting include financial accounting, managerial accounting, and auditing.

The role and activities of an accountant in an organization can vary depending on the size and type of the organization. However, some of the key responsibilities of an accountant include:

• Recording financial transactions: Accountants are responsible for keeping a record of all financial transactions of the organization, including purchases, sales, receipts, and payments.
• Preparing financial statements: Accountants prepare financial statements, including balance sheets, income statements, and cash flow statements, to provide an overview of the organization’s financial performance.
• Managing accounts receivable and accounts payable: Accountants manage the organization’s accounts receivable and accounts payable to ensure that the company is paying its bills on time and collecting payments from customers.
• Managing payroll: Accountants are responsible for processing payroll and ensuring that employees are paid accurately and on time.
• Conducting financial analysis: Accountants analyze financial data to identify trends and provide insights into the organization’s financial performance.
• Tax planning and compliance: Accountants help organizations plan their tax strategy and ensure compliance with tax regulations.

Overall, an accountant plays a critical role in the financial management of an organization and is responsible for ensuring that the organization’s financial information is accurate, timely, and reliable.

Q2. Why is finance considered to be the backbone of business? Discuss the scope of financial management.

Finance is considered to be the backbone of business because it plays a critical role in ensuring the success and sustainability of an organization. Financial management is an essential function that involves the planning, organizing, directing, and controlling of financial resources to achieve the goals and objectives of the organization.

The scope of financial management is vast and covers a wide range of activities that are essential for the efficient functioning of any business. Some of the key areas of financial management include:

• Financial Planning: This involves forecasting the financial needs of the organization and developing strategies to meet those needs.
• Capital Budgeting: This refers to the process of evaluating and selecting investment opportunities that will generate long-term returns for the organization.
• Risk Management: This involves identifying, analyzing, and mitigating risks that could negatively impact the financial health of the organization.
• Financial Control: This involves monitoring the financial performance of the organization and taking corrective actions to ensure that financial goals are met.
• Financial Reporting: This involves preparing and presenting financial statements and reports to stakeholders to provide a clear understanding of the financial position and performance of the organization.

In summary, finance is considered to be the backbone of business because it provides the necessary resources and strategies for the organization to achieve its goals and objectives. The scope of financial management covers all aspects of managing financial resources, from planning to reporting, to ensure the financial health and sustainability of the organization.

Q3. What are the various forms of dividend? Describe the factors affecting dividend decision.

Dividend is a portion of the profits earned by a company that is distributed to its shareholders. Dividends can take various forms depending on the company’s policies and the needs of the shareholders. Some common forms of dividends are:

• Cash dividend: This is the most common form of dividend where the company distributes cash to its shareholders. The amount of cash dividend is usually expressed as a fixed amount per share or as a percentage of the company’s profits.
• Stock dividend: In a stock dividend, the company distributes additional shares to its shareholders. The number of additional shares issued is usually proportional to the number of shares held by the shareholder.
• Property dividend: In a property dividend, the company distributes assets to its shareholders. These assets can be in the form of physical assets like real estate or other intangible assets like patents or trademarks.

Factors affecting dividend decision:

• Profitability: Companies that are profitable and have a strong financial position are more likely to pay dividends as they have the necessary funds to distribute to their shareholders.
• Cash flow: Dividends are paid out of a company’s cash flow, so companies with consistent and positive cash flow are more likely to pay dividends.
• Growth opportunities: Companies that are in a growth phase and require funds to invest in new projects may choose to retain earnings rather than paying dividends.
• Legal requirements: Companies are required to follow certain legal requirements while making dividend payments. For example, they cannot pay dividends if they are in a loss-making position.
• Shareholder expectations: Shareholders may have different expectations regarding dividends. Some may prefer a regular and stable dividend payout, while others may prefer a higher dividend payout even if it is irregular.
• Tax considerations: The tax implications of dividend payments can also influence a company’s dividend decision. In some cases, it may be more tax-efficient to retain earnings rather than paying dividends.

4. Discuss the concept of CVP analysis. Explain the difference between CVP analysis and Break even analysis.

Assets are resources that a company or an individual owns and that have economic value. They can be classified into different categories based on their nature, useful life, and convertibility to cash.

Current assets are assets that can be converted into cash within one year or the operating cycle of a business. They are short-term assets that are expected to be converted into cash or used up within a year. Examples of current assets include cash, accounts receivable, inventory, and prepaid expenses.

Fixed assets, on the other hand, are long-term assets that are not intended for sale and are used to generate income over a longer period. They are generally considered to have a useful life of more than one year and are not expected to be converted into cash quickly. Examples of fixed assets include land, buildings, machinery, and equipment. These assets are typically depreciated over time to account for their decreasing value due to wear and tear.

6. Define cost accounting. Discuss the various types of costs and methods of costing.

Cost accounting is a branch of accounting that deals with the measurement, analysis, and interpretation of costs of goods and services. It involves the identification and allocation of costs to products or services, determining the profitability of a particular product or service, and identifying opportunities for cost reduction.

Types of costs:

1. Direct Costs: These are the costs that are directly related to the production of a specific product or service, such as labor costs, raw materials, and manufacturing overhead.
2. Indirect Costs: These are the costs that are not directly related to the production of a specific product or service, such as rent, utilities, and administrative costs.
3. Fixed Costs: These are the costs that do not change regardless of the level of production, such as rent and salaries.
4. Variable Costs: These are the costs that vary with the level of production, such as raw materials and labor.
5. Semi-variable Costs: These are the costs that have both fixed and variable components, such as utilities and maintenance costs.

Methods of costing:

1. Job Costing: This method is used for tracking the cost of producing a specific product or service. Each job is assigned a unique number, and the costs associated with that job are tracked separately.
2. Process Costing: This method is used for tracking the cost of producing a large volume of identical products or services. The cost is assigned to each process, and the total cost is then divided by the number of units produced.
3. Activity-Based Costing (ABC): This method is used for identifying and assigning the costs of activities that contribute to the production of a product or service. The cost is assigned to each activity, and then allocated to the product or service based on the activity consumed.
4. Standard Costing: This method involves the development of predetermined costs based on the expected cost of production. These predetermined costs are then used as a basis for comparison with actual costs to identify any variances.
5. Marginal Costing: This method focuses on the analysis of the variable costs associated with producing a product or service. The contribution margin is calculated by subtracting the variable costs from the selling price, and this margin is used to determine the profitability of the product or service.

In summary, cost accounting is a crucial aspect of managing a business. By understanding the various types of costs and methods of costing, businesses can make informed decisions regarding pricing strategies, cost reduction, and resource allocation.

Q7. Explain the various sources of fund. How will you analyse the changes in working capital.

There are various sources of funds that a business can use to finance its operations, growth, or expansion. Some of the common sources of funds include:

• Equity: This refers to the funds contributed by the owners or shareholders of the business.
• Debt: This refers to the funds borrowed from banks, financial institutions, or other lenders.
• Retained earnings: This refers to the profits earned by the business that are reinvested in the business instead of being distributed to shareholders as dividends.
• Sale of assets: This refers to the funds generated by selling fixed assets such as land, buildings, machinery, or equipment.
• Trade credit: This refers to the credit extended by suppliers to the business for the purchase of goods and services.

Analyzing changes in working capital involves monitoring the changes in a company’s current assets and liabilities over a specific period. Working capital is calculated by subtracting current liabilities from current assets. An increase in working capital indicates that a company has more assets to cover its short-term obligations, while a decrease in working capital suggests that a company may have trouble paying its short-term debts.

To analyze changes in working capital, you can compare the current period’s working capital balance to previous periods. A positive change in working capital suggests that the company is in a better position to meet its short-term obligations, while a negative change suggests that the company may be experiencing cash flow problems.

You can also analyze changes in individual current assets and liabilities to identify the root cause of changes in working capital. For example, an increase in accounts receivable may indicate that the company is having trouble collecting payments from customers, while an increase in accounts payable may suggest that the company is taking longer to pay its suppliers.

Q8. What is a balance sheet? Explain the forms and contents of balance sheet.

A balance sheet is a financial statement that shows the assets, liabilities, and equity of a company at a specific point in time. It provides a snapshot of a company’s financial position, allowing investors, creditors, and other stakeholders to assess its liquidity, solvency, and financial health.

There are two main forms of balance sheets: report form and account form. The report form presents assets on the left side and liabilities and equity on the right side. The account form presents assets, liabilities, and equity in vertical columns, with assets on top, liabilities in the middle, and equity at the bottom.

The contents of a balance sheet are divided into two sections: assets and liabilities + equity.

Assets are resources that a company owns and can be used to generate revenue. They can be categorized as current assets, which are expected to be converted to cash within a year, and non-current assets, which are expected to provide economic benefits for more than a year. Examples of assets include cash, accounts receivable, inventory, property, plant and equipment, and investments.

Liabilities are obligations that a company owes to others and must be paid back. They can be categorized as current liabilities, which are expected to be paid within a year, and non-current liabilities, which are expected to be paid over a longer period. Examples of liabilities include accounts payable, loans, and bonds.

Equity represents the residual interest in the assets of a company after liabilities are deducted. It includes common stock, preferred stock, and retained earnings, which are the profits a company has earned and not distributed to its shareholders.

The balance sheet equation, also known as the accounting equation, is Assets = Liabilities + Equity. This equation ensures that the balance sheet always remains balanced, with the total value of assets equaling the total value of liabilities and equity.

Q9. What is variance? Explain how variance is calculated.

Variance is a statistical measure that describes how much the individual values in a set of data vary from the mean, or average, of the data. In other words, variance is a measure of the spread or dispersion of the data.

Variance is calculated by taking the difference between each data point and the mean of the data set, squaring those differences, and then taking the average of the squared differences. This average of the squared differences is the variance. Mathematically, it can be expressed as:

Variance = Σ (xi – x̄)² / n

where xi represents each individual data point, x̄ represents the mean of the data set, and n is the total number of data points.

The variance is usually denoted by σ² (sigma squared) and is measured in the same units as the data. A high variance indicates that the data points are widely spread out from the mean, while a low variance indicates that the data points are clustered around the mean.

Q10. Define budget and budgetary control. Prepare the budget for a small tour operation company.

Definition:

A budget is a financial plan that outlines the expected income and expenses over a specific period, usually a fiscal year. It is a tool used to control spending and ensure that financial resources are used efficiently.

Budgetary control, on the other hand, is the process of monitoring actual financial results against budgeted figures, analyzing any variances, and taking corrective action where necessary to ensure that the organization’s financial goals are met.

Preparing a budget for a small tour operation company:

Here is a sample budget for a small tour operation company. The figures are fictitious and are intended only to provide an example of how a budget might look:

Revenue:

• Guided tours: $50,000
• Custom tours: $20,000
• Total revenue: $70,000

Expenses:

• Salaries and wages: $20,000
• Rent and utilities: $5,000
• Vehicle expenses: $10,000
• Marketing and advertising: $5,000
• Insurance: $2,000
• Equipment and supplies: $3,000
• Other expenses: $5,000
• Total expenses: $50,000

Net income:

• Total revenue – total expenses: $20,000

In this example, the small tour operation company expects to earn $70,000 in revenue from guided and custom tours. However, they also have $50,000 in expenses, including salaries and wages, rent and utilities, vehicle expenses, marketing and advertising, insurance, equipment and supplies, and other expenses.

By subtracting expenses from revenue, the company expects to have a net income of $20,000. This budget can be used to track actual financial results throughout the year and make adjustments as needed to ensure that the company stays on track to meet its financial goals.

GET Handwritten Hardcopy 
All Over India Delivery 
WhatsApp – 8130208920