Download GTU (Gujarat Technological University) MBA 2019 Winter 4th Sem 2840007 Management Control System Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? IV EXAMINATION ? WINTER 2019
Subject Code: 2840007 Date: 29-11-2019
Subject Name: Management Control System
Time: 2.30 PM to 5.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
4.
Q.
No.
6
Q.1
(a)
Objective Questions
Which of the following activities represents a top-down function of
management control?
1. A. Resource allocation;
develop personal
skills of lower-level
managers and their
subordinates.
B
.
Report on goal achievement;
provide input when goals are
unrealistic.
C. Enable lower-level
managers to acquire
the support and
resources to execute
their responsibilities.
D
.
Enable the coordination and
cooperation with other
decentralized units.
2. Which of the following statements is true?
A. Strategic variance
analysis is the same as
traditional variance
analysis.
B
.
Strategic variance analysis means
that traditional variance analysis
is more firmly connected the
company?s and the respective
business unit?s strategy.
C. Strategic variance
analysis means that
focus lies on
analyzing revenue
variances in relation
to the company?s
strategy.
D Strategic variance analysis means
that focus lies on analyzing
expense variances in relation to
the company?s strategy.
3. A balanced scorecard proposes measures in the following four
perspectives:
A. Financial, customer,
internal business,
employee.
B
.
Financial, customer, employee,
innovation and learning.
C. Financial, internal
business, employee,
innovation and
learning.
D
.
Financial, customer, internal
business, innovation and learning.
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1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? IV EXAMINATION ? WINTER 2019
Subject Code: 2840007 Date: 29-11-2019
Subject Name: Management Control System
Time: 2.30 PM to 5.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
4.
Q.
No.
6
Q.1
(a)
Objective Questions
Which of the following activities represents a top-down function of
management control?
1. A. Resource allocation;
develop personal
skills of lower-level
managers and their
subordinates.
B
.
Report on goal achievement;
provide input when goals are
unrealistic.
C. Enable lower-level
managers to acquire
the support and
resources to execute
their responsibilities.
D
.
Enable the coordination and
cooperation with other
decentralized units.
2. Which of the following statements is true?
A. Strategic variance
analysis is the same as
traditional variance
analysis.
B
.
Strategic variance analysis means
that traditional variance analysis
is more firmly connected the
company?s and the respective
business unit?s strategy.
C. Strategic variance
analysis means that
focus lies on
analyzing revenue
variances in relation
to the company?s
strategy.
D Strategic variance analysis means
that focus lies on analyzing
expense variances in relation to
the company?s strategy.
3. A balanced scorecard proposes measures in the following four
perspectives:
A. Financial, customer,
internal business,
employee.
B
.
Financial, customer, employee,
innovation and learning.
C. Financial, internal
business, employee,
innovation and
learning.
D
.
Financial, customer, internal
business, innovation and learning.
2
4.
If a company uses cost-based transfer prices, the usual cost basis is:
A. Actual costs. B
.
Standard costs.
C. Negotiated costs. D
.
Actual costs less standard costs.
5. Which of the following items is never budgeted?
A. Budget deviations B
.
Investments
C. Taxes D
.
Cash flow
6. Which of the following is not a common way of evaluating the
performance of the profit center manager?
A. Contribution margin. B
.
Net income.
C. Residual income. D
.
Direct profit.
Q.1 (b) 1. Strategy Formulation
2. Operational Control
3. EVA
4. BSC
04
Q.1 (c) Difference Between Strategy Formulation & Management
Control System
04
Q.2 (a) ?The scope of MCS is not limited to the top-level management
but it affects the whole organization? Are you agree with the
statement? Why?
07
(b) Distinguish between corporate level strategy & business level
strategy.
07
OR
(b) Discuss in detail of various incentive plans. 07
Q.3 (a) Explain in detail about responsibility center & types of
responsibility center.
07
(b) Explain advantage of profit center 07
OR
Q.3 (a) What do you mean by transfer pricing? Discuss various
methods of transfer pricing?
07
(b) Write a brief note on agency theory in compensation
management.
07
Q.4 (a) Explain behavioral aspect of budgeting in detail. 07
(b) Difference between EVA & ROI 07
OR
Q.4 (a) Explain in detail of objective & methods of performance
evaluation of business managers. Discuss merits & demerits of
each of methods of evaluation.
07
(b) Distinguish between strategic planning & strategic
formulation. Explain advantages & pitfalls of strategic
planning from view point of management control.
07
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1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? IV EXAMINATION ? WINTER 2019
Subject Code: 2840007 Date: 29-11-2019
Subject Name: Management Control System
Time: 2.30 PM to 5.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
4.
Q.
No.
6
Q.1
(a)
Objective Questions
Which of the following activities represents a top-down function of
management control?
1. A. Resource allocation;
develop personal
skills of lower-level
managers and their
subordinates.
B
.
Report on goal achievement;
provide input when goals are
unrealistic.
C. Enable lower-level
managers to acquire
the support and
resources to execute
their responsibilities.
D
.
Enable the coordination and
cooperation with other
decentralized units.
2. Which of the following statements is true?
A. Strategic variance
analysis is the same as
traditional variance
analysis.
B
.
Strategic variance analysis means
that traditional variance analysis
is more firmly connected the
company?s and the respective
business unit?s strategy.
C. Strategic variance
analysis means that
focus lies on
analyzing revenue
variances in relation
to the company?s
strategy.
D Strategic variance analysis means
that focus lies on analyzing
expense variances in relation to
the company?s strategy.
3. A balanced scorecard proposes measures in the following four
perspectives:
A. Financial, customer,
internal business,
employee.
B
.
Financial, customer, employee,
innovation and learning.
C. Financial, internal
business, employee,
innovation and
learning.
D
.
Financial, customer, internal
business, innovation and learning.
2
4.
If a company uses cost-based transfer prices, the usual cost basis is:
A. Actual costs. B
.
Standard costs.
C. Negotiated costs. D
.
Actual costs less standard costs.
5. Which of the following items is never budgeted?
A. Budget deviations B
.
Investments
C. Taxes D
.
Cash flow
6. Which of the following is not a common way of evaluating the
performance of the profit center manager?
A. Contribution margin. B
.
Net income.
C. Residual income. D
.
Direct profit.
Q.1 (b) 1. Strategy Formulation
2. Operational Control
3. EVA
4. BSC
04
Q.1 (c) Difference Between Strategy Formulation & Management
Control System
04
Q.2 (a) ?The scope of MCS is not limited to the top-level management
but it affects the whole organization? Are you agree with the
statement? Why?
07
(b) Distinguish between corporate level strategy & business level
strategy.
07
OR
(b) Discuss in detail of various incentive plans. 07
Q.3 (a) Explain in detail about responsibility center & types of
responsibility center.
07
(b) Explain advantage of profit center 07
OR
Q.3 (a) What do you mean by transfer pricing? Discuss various
methods of transfer pricing?
07
(b) Write a brief note on agency theory in compensation
management.
07
Q.4 (a) Explain behavioral aspect of budgeting in detail. 07
(b) Difference between EVA & ROI 07
OR
Q.4 (a) Explain in detail of objective & methods of performance
evaluation of business managers. Discuss merits & demerits of
each of methods of evaluation.
07
(b) Distinguish between strategic planning & strategic
formulation. Explain advantages & pitfalls of strategic
planning from view point of management control.
07
3
Q.5 NR manufacturing concern furnished the following
information
Standard (Budgeted)
Material for 70 kg finished products 100 kg
Price of material 1 Re per kg
Actual output 210 MT
Materials used 280MT
Cost of material 2,52,000 Rs.
Calculate Material variances
14
OR
Q.5 The Swara Ltd. manufactures and sells music system. The
Assembly Division assembles the music system sets. It buys
the accessories for sets from the Accessory Division. The
Accessory Division is operating at full capacity. The
incremental cost of manufacturing the accessories is Rs. 70 per
unit. The Accessory division can sell as many accessories as it
wants in the outside market at price Rs. 110 per unit. If it sells
in the outside market, the Accessory division will incur
variable marketing and distributing cost of Rs. 4 per unit.
Similarly, if the assembly division purchases accessories from
outside market, it will incur variable purchasing cost Rs. 2 per
unit. Suppose division managers? act autonomously to
maximize their own division?s operating income, and they
were to negotiate a transfer price, what is the range of
acceptable transfer price?
14
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This post was last modified on 19 February 2020