P. G. D. B. M. (Semester - IV),MANAGEMENT CONTROL SYSTEM,University Of Pune Question Paper,2010 Question Paper

University Of Pune Question Paper
P. G. D. B. M. (Semester - IV) Examination - 2010
MANAGEMENT CONTROL SYSTEM
(New 2008 Pattern)
Time : 3 Hours] [Max. Marks : 70
Instructions :
(1) Answer any four questions from section A and any one CASE
STUDY from section B.
(2) All questions carry equal marks.
SECTION - A
Q.1) Explain difference in Management Control and Operational Control. What
do you understand by Strategic Planning ? Explain in brief.
Q.2) Explain various types of Responsibility Centers. What are the advantages
and disadvantages of Profit Center ?
Q.3) Explain how Management Control System in Manufacturing Sector differs
from Management Control System in Service Sector ?
Q.4) Explain difference between : (Any Three)
(a) Management Audit and Financial Audit
(b) Economic Value Added and Return on Investment
(c) Financial Performance Measure and Non-financial Performance
Measure
(d) Incremental Budgeting and Zero-base Budgeting
(e) Engineering Expense Center and Discretionary Expense Center
Q.5) Write short notes : (Any Three)
(a) Goal Congruence
(b) Functions of a Controller
(c) Balanced Score Card
(d) Activity Based Costing
(e) Value Chain Analysis
SECTION - B
Q.6) Nutech Division of Phoenix India Ltd. has Assets worth Rs. 22,00,000 and
Operating Income of Rs. 7,50,000.
(a) Calculate ROI of the Division.
(b) If the Minimum Rate of Return is 12%, what is the division’s residual
income ?
Q.7) A company has practice of fixing inter-department transfer price for its
product on the basis of cost plus return on investment in the division. The
budget for division A for the year is as follows :
Annual Budgeted Output 6,00,000 units
Variable Cost of the Product Rs. 10 per unit
Annual Fixed Cost for the Division A Rs. 10.20 lacs
Total Investment in the Division Rs. 20 lacs
If return on investment is planned at 24%, then calculate transfer price
of product per unit of Division A.

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