TOPICS/QUESTIONS MCS BASIC Explain briefly various stages of management control process citing salient features of each Management

control in matrix structures Describe the features of ideal management control systems and its processes? Describe and illustrate significance of human behavior patterns in management control system Explain some factors which may influence top management style and the implication of the top management style on management control RESPONSBILITY CENTER What is a responsibility centre? List and explain different types of Responsibility Centers with sketches Explain the following responsibility centers: Engineer Expense Centre, Discretionary Expense Centre, Profit Centre, Revenue Centre, Investment Centre How is budget prepared in Discretionary Expenses Centre? How performance of manager evaluated What are the different methods to evaluate the performance of an investment centre? Discuss the merits and demerits of each? Which method would you recommend? Which management control practices, if followed, in performance measurement of investment centres are likely to induce goal congruence, in respect of following assets Idle, Intangible, Leased, Cash, Receivables, Inventories PROFIT CENTRE Organizations with Business Divisions (Profit Centre) format have observed that Divisional Controllers experience divided loyalty in carrying out their functions, causing a possible dysfunction. How could such a situation be resolved? Define role of controller which suits your suggestion. What are the challenges faced in pricing corporate services provided to Business Units operating as profit centers? What are the different ways to measure the performance of profit centres? Discuss their relevant, merits & demerits Describe inherent difficulties while creating a profit centre with its advantages and disadvantages? Under which situation creation of profit centre is not advisable? MCS designers apparently disagree whether single measure to evaluate the profit performance and capital investment performance is preferable or SEPARATE measures for each are preferable What are the different methods to measure profits of a profit center in organizations? Which different

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messages each type of measure is likely to convey to managers? SBU Every SBU is a profit centre but every profit centre is not an SBU. What are conditions that should be fulfilled by an organisation in order to be converted to profit centre? What are the different types of strategic mission at SBU levels .how do these missions affect strategy planning process & budgeting at SBU level? TRANSFER PRICING Transfer Pricing is not an accounting tool comment with an illustration. Market price is the ideal transfer price even in the limited market. Comments Explain the transfer pricing mechanism and also indicate the advantages and disadvantages of 2 step transfer pricing and profit saving method What are the objectives of transfer pricing? What is an ideal concern price in the situation of (a) limited market and (b) shortage of capacity in the industry. When do you use cost base transfer pricing? AUDITS Financial audit Management audit Cost audit Efficiency audit Quality audit Technical audit Operational audit GOAL CONGRUENCE What do you understand by Goal Congruence? What are the informal factors that influence goal congruence? Explain different organizational goals. Comment on goal of shareholder value maximization in particular. X 2 X 1 X X X

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BALANCE SCORE CARD What is balanced scorecard? Explain the process of its implementation and difficulties while 6 implementation Why balance score cards considered as superior method of performance appraisal? Prepare balance score 1

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card for any organization? FREE CASH FLOW Free Cash flow Concept of free cash flow as applied to an organization. Explain the process of its computation EVA/ROI Explain the concept of ROI & EVA. What are its advantages & disadvantages? Many experts regard EVA as a concept superior to ROI and yet in certain cases, EVA does not do justice to the evaluation of investment center. Explain this phenomenon with as illustration SERVICE ORGANISATION Describe factors which impact service organisation What are the Special Characteristics of Professional Service Organization? How is Marketing done in them? How do we evaluate its performance? X 4 X 2 X X X X X X X X X X X X X X X X X X X X

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What is a Non - Profit Organization? How is the performance of this organization evaluated?
Explain special characteristics of professional organizations which impact Management Control. What are interactive controls BUDGETING Zero Based Budgeting R&D Discuss the challenges faced in controlling R&D activities & possible management initiatives SHORT NOTES Strategy Formulation and Management Control Management Control and Task Control Strategy Formulation and Task Control Internal control Concept of profit centre in non-profit organization Implications of differentiated strategies on controls

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