Post Graduate Diploma-Post Graduate Diploma Business Management 4th Sem 401 : MANAGEMENT CONTROL SYSTEMS(University of Pune, Pune-2013)

                         P.G.D.B.M. (Semester – IV) Examination 2013
                          401 : MANAGEMENT CONTROL SYSTEMS
                                                   (2008 Pattern)

Time : 3 Hours                                                                             Max. Marks : 70

Instructions :

1) Solve any four questions from Section – I and any one from Section – II.

2) All questions carry equal marks.

SECTION – I

 

1. Explain the difference between management control and operational control. What do you understand by strategic planning ? Explain in brief.

 

2. What is a responsibility center ? Explain various types of responsibility centers. What is the difference between profit centre and revenue centre ? Explain in brief.

 

3. Explain how management control system in service sector differs from manufacturing sector. Give examples.

 

4. Explain financial and non-financial performance measures with respect to balance score card.

 

5. Write short notes on any three :

1) Goal congruence

2) Functions of controller

3) Zero based budget

4) Activity based costing

5) Transfer pricing methods.

SECTION – II

6. ABC Co. Ltd. fixes inter-divisional transfer prices for its product on the basis of cost plus return on investment in the division. The budget for division ‘A’ for 2012-13 is as under :

(Rs.)

Fixed assets 2,50,000

Current assets 1,50,000

Debtors 1,00,000

Annual fixed cost of division 4,00,000

Variable cost per unit of product 10

Budgeted volume (units per year) 2,00,000

Desired ROI 28%

i) Determine the transfer price for division ‘A’.

ii) If volume (in units) can be increased by 10% what will be the impact on transfer prices ?

 

7. ABC Ltd. has three offices. One at Mumbai, Second at Panaji (Goa) and third at Ahemadabad (Gujrat). There are 15 landline telephones 8 at Mumbai, 3 at Panaji and 4 at Ahemadabad. There are 9 mobiles given to each office. Recently; it is observed that, landline bills have decreased but mobile bills are quite high. You are asked to design a management control system so as to reduce the bills of respective offices.

Earning:  ₹ 7.05/-