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INDIAN SCHOOL OF BUSINESS MANAGEMENT AND
ADMINISTRATION
AN ISO 9001:2015 CERTIFIED INTERNATIONAL B-SCHOOL
Name: Marks: 80
Course: Masters in Business Administration (MBA 4 Sem)
Subject: Management Control Systems
Answer the following question.
Q1. Write a short note on Mix and Volume Variance (10marks)
Answer: Mix and Volume variances are two important types of variances in cost accounting that are used to measure the differences between the actual and expected costs of producing a product.
Mix variance refers to the difference between the actual proportion of materials used in production and the expected proportion of materials used, based on the standard mix. This variance is calculated by multiplying the standard quantity of each material by the difference between the actual mix ratio and the standard mix ratio. A positive mix variance indicates that more of a high-cost material was used than expected, while a negative mix variance indicates that less of a low-cost material was used than expected.
Q3. What are the characteristics of a project organization? Explain how do these characteristics affect the control system design of a project.(10marks)
Answer: A project organization is a temporary organization that is created for the purpose of completing a specific project. Unlike traditional organizations, which have a more permanent structure, project organizations are designed to be flexible and adaptable to changing requirements. Here are some characteristics of a project organization:
1. Temporary: A project organization is created for a specific project and is disbanded once the project is completed.
2. Unique: Each project is unique, with its own set of requirements, constraints, and objectives.
3. Cross-functional: Project teams typically include members from different functional areas of the organization, such as engineering, finance, marketing, and operations.
4. Project manager: A project
Q4. Explain the following models and highlight their usefulness in formulating business unit strategies : The BCG Model.(10marks)
Answer: The BCG (Boston Consulting Group) model, also known as the Growth-Share matrix, is a strategic management tool that helps organizations analyze their product portfolio and make strategic decisions about their business units. The model is based on two dimensions: market growth rate and relative market share. Business units are classified into four categories: Stars, Cash Cows, Question Marks, and Dogs. Here is a brief explanation of each category:
1. Stars: Business units with a high relative market share and high market growth rate. These units have a strong market position and are expected to generate high profits in the future.
2. Cash Cows: Business units with a high relative market share and low market growth rate. These units generate high profits,
Q5. Define Transfer pricing. Describe the various transfer pricing methods in detail What do you understand by the term responsibility center?(10marks)
Answer: Transfer pricing refers to the price at which goods or services are transferred between different departments, divisions, or subsidiaries of a company. The goal of transfer pricing is to ensure that each department or subsidiary is fairly compensated for the goods or services it provides, while also optimizing the overall performance of the company. Transfer pricing is important for both tax and managerial purposes.
There are several transfer pricing methods that
Q6. Explain, in detail, the various corporate level strategies and business unit, ‘strategies with detail (10marks)
Answer: Corporate-level strategy is concerned with the overall scope and direction of an organization. It involves decisions about the company’s portfolio of businesses, the industries in which it operates, and how to allocate resources among its various business units. There are three primary corporate-level strategies:
1. Diversification strategy: This involves expanding the company’s portfolio of businesses to reduce risk and increase growth opportunities. Diversification can be achieved through either related or unrelated
Q7. Consider a Retail Outlet. What should be the objectives of Management Control system for the retail outlet? Examples would strengthen your views.
(10marks)
Answer: The objectives of a Management Control System (MCS) for a retail outlet can be broadly categorized into three areas: financial performance, operational efficiency, and customer satisfaction. Examples of each are:
1. Financial Performance:
• Increasing revenue and profit margins: This can be achieved by monitoring sales, inventory levels, and profit margins, and adjusting pricing and promotions as needed.
• Controlling expenses: This can be achieved by monitoring and controlling labor costs, inventory shrinkage, and other operating expenses.
• Maximizing return on investment: This can be achieved by measuring and tracking key financial metrics such as return on assets and return on investment, and making strategic investments to improve performance
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Q8. Difference between Responsibility Centers: Revenue and Expense Centers. (10marks)
Answer: Responsibility centers are organizational units that are responsible for specific functions and are accountable for their performance. Two common types of responsibility centers are revenue centers and expense centers. The main difference between the two is the primary focus of their performance measurements.
Revenue centers are
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id
help.mbaassignments@gmail.com
or
call us at : 08263069601