Bachelor Of Business Administration (Business Administration)

PROFIT PLANNING AND CONTROL

2nd Year Examination
(July - 2023)
Marks: 100

Note: Attempt any Ten Questions. Each question Carry 10 marks.

Q1. Discuss the importance of profit planning in business organizations. Explain how
effective profit planning contributes to the financial success of a company.

Q2. Explain the components of a profit plan, including revenue forecasts, cost projections,
and profit targets. Discuss the process of developing a comprehensive profit plan.

Q3. Describe the concept of break-even analysis and its role in profit planning. Discuss how
break-even analysis helps businesses determine the level of sales needed to cover costs.

Q4. Discuss the significance of variance analysis in profit control. Explain how variance
analysis is used to identify deviations from the budget and take corrective actions.

Q5. Explain the principles of incremental budgeting and zero-based budgeting in profit
planning. Discuss the advantages and disadvantages of each approach.

Q6. Discuss the role of pricing strategies in profit planning. Explain how pricing decisions
impact both short-term and long-term profitability.

Q7. Describe the concept of cost control in profit planning. Discuss strategies for reducing
costs and improving profit margins.

Q8. Discuss the importance of cash flow management in profit planning and control. Explin
how cash flow forecasting helps businesses avoid liquidity issues.

Q9. Explain the principles of capital budgeting and its role in profit planning for long-term
investments. Discuss methods like Net Present Value (NPV) and Internal Rate of Return
(IRR)

Q10. Describe the concept of risk management in profit planning. Discuss how businesses
assess and mitigate risks to protect profit margins.

Q11. Discuss the role of key performance indicators (KPIs) in profit control. Explain how
KPIs help monitor and evaluate the financial health of an organization.
Q12. Analyze the future trends in profit planning and control, including the impact of
technology, data analytics, and sustainability considerations on profit management
practices in modern businesses.