Model Questions

Answer should be confined to 200 - 250 words. 1. Numericals on Variance analysis, transfer pricing and budgeting. 2. Describe briefly five mutually supportive management sub-systems that are useful in describing management control systems. 3. Explain the steps involved in Zero Based Budgeting. 4. Discuss the various types of formal standards used in evaluation of reports on the actual activities. 5. Variance analysis is certainly a powerful tool. However, it has limitations. Discuss the limitations of variance analysis. 6. One of the limitations of achievable targets is the possibility that business unit managers put forth satisfactory effort once the budget is met. Yet, most senior management approves achievable budgets. Put forth the reasons. 7. Briefly discuss the various categories of operating budgets. 8. Contrast Budgeting with forecasting with Strategic Planning. 9. What is Activity Based Costing? What is Target Costing? 10. No matter how specific the pricing rules, there may be instances in which business units will not be able to agree on a price (transfer pricing). How can organizations resolve this issue? 11. Why is management control in service industries different from management controls in manufacturing companies? 12. Activity based costing (ABC) is essentially strategic think tool Explain. 13. Define core competence. In what way, is it linked with SWOT analysis. 14. Describe the unique features of professional service organization. 15. Describe the unique features of financial service organization. 16. How do cultural differences across nations alter management control? 17. Explain the reasons for manipulation of transfer price by MNCs and their effect. 18. If a project is treated as a profit centre, what difficulties you foresee in operationalizing a control system. 19. Discuss in details various types of long term incentive plans.