Total No. of Questions 08] [Total No. of Pages 02
M.B.A. Years) DEGREE EXAMINATION, MAY 2018
First Year
HOSPITAL ADMINISTRATION
Hospital Economics and Financial Management
Time 3 Hours Maximum Marks :70
SECTION A
Answer any three of the following questions. x 5 15)
Q1) Interdependency income.
Law of supply.
Monopolistic competition.
Margin of safety.
Profitability Index.
Constituents of working capital.
SECTION B
Answer any three of the following questions. x 15 45)
Q2) What is law of demand? Explain exceptions to it.
Q3) Explain price out put determination under oligopoly market.
Q4) What is financial analysis? Explain various techniques available to evaluate
financial performance of an organization.
Q5) Explain Net-operating Income theory.
Q6) Explain factors effecting dividend policy of an organization.
Q7) Explain methods of controlling inventory.
SECTION C
(Compulsory)
Q8) Case Study:
While preparing a project report on behalf of a client you have collected the
following facts. Estimate the net working capital required for that project. Add
10% contingency to your computed figures to allow contingencies.
Particulars Amount per unit
Estimated cost per unit of production
Raw material 80
Direct labour 30
Overheads (exclusive of depreciation of Rs.10 per unit) 60
Total cost 170
Additional information:
a. Selling price, Rs.200 per unit.
b. Level of activity, 104000 units of production per annum.
c. Raw material in stock, average 4 weeks.
d. Work in progress (assume 50% completion stage in respect of conversion
cost and 100 percent in respect of material), average 2 weeks.
e. Finished goods stock, average 4 weeks.
f. Credit allowed by suppliers, average 4 weeks.
g. Credit allowed to debtors, average 8 weeks.
h. Lag in payment of wages, average 1.5 weeks.
i. Cash at bank is expected to be Rs.25,000.
You may assume that production is carried on evenly throughout the year (52
weeks) and wages and overheads accrue similarly. All sales are on credit basis
only.