Regu.F- 461 Seat Total No. of Pages : 3 No. M.B.A. (Part - ID) (Semester - IV) Examination, Nov. - 2013 MANAGEMENT CONTROL SYSTEM (Regular) (Paper-XXV1) Sub. Code : 48357 Day and Date : Tuesday, 19 - 11 - 2013 Total Marks : 70 Time :2.30 p.m to 5.30 p.m. Instructions : 1) Q.1 & Q.5 are compulsory. 2) Solve any Two from Q.2 to Q.4. QI) Case Study [20] Indian pottery co. is noted for a full line of quality products. The co. operates one of its plants in Mumbai. The plant produces two types of products: Indian design A and Contemporary B, Rajan the president of the co,. recently decided to change from a volume based costing system to an activity-based cost system, Before making the change company wide, he wanted to assess the effect of the product costs of the Mumbai plant. This plant was chosen because it produces only two types of products, most other plants produced at least a dozen. To assess the effect of the change, the following data have been gathered. Products [Quantity] Prime Machine | Material | Set ups Costs (Rs.)| hours moves Indian A 200000 | 700000 50000 700000 100 Cotemporary 50000 150000 12500 100000. 50 B Total value | ------- Rs.850000 | *Rs.250000] Rs.300000 |Rs.150000 *Rs.250000 is the cost of maintenance of machines. Under the current system, the cost of maintenance, material handling, and set ups are assigned to the products on the basis of machine hours. Required: 1) Compute the unit cost of each product using the current unit based approach. 2) Compute the unit cost of each product using an activity based costing approach. PTO.Regu.F- 461 OR QI) a) _ Prepare a flexible budget from the following data. [10] Particulars ‘Amt Capacity 30% Volume 10000 units Selling price per unit Rs.200 Material Rs.100 Labour Rs.30 | Factory Overhead Rs.30 (Rs. 12 fixed) Administrative Overhead Rs.20 (Rs.10 fixed) At 60% working, material cost per unit increased by 2% and selling price per units falls by 2%. At 80% working material cost per unit increased by 5% and selling price per unit falls by 5%. Estimate the profit at 60% and 80 % working, b) Ascertain sales and P/V Ratio when [10] Fixed Cost = Rs.20000 Profit = Rs.10000 BEP = Rs. 40000 2) a) Explain the non financial measures of performance, 15] b) Explain the types of responsibility centers in detail. [10] 23) a) State and explain the basic concepts of management control system. [5] b) Define goal and goal congruence. Explain informal factors influencing control system. [10] EsRegu.F- 461 Q4) a) Define Reporting. Explain essentials of good report. 15] b) Define the term audit. Explain the principles and objectives of management audit. [10] Q5) Write short notes on (Any 4): [20] a) Objectives of Internal audit. b) Limitations of budgetary control. c) MCS in financial service organizations. d) MCS in Non - profit organisation. e) Objectives of transfer pricing. f) Prerequisites of Balance scorecard. oo6 -3-