1
Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA SEMESTER- 4 • EXAMINATION SUMMER 2018
Subject Code:840003 Date: 25/05/2018
Subject Name: MANAGEMENT CONTROL SYSTEM
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1

" Management Control System is the fine tune combination of Control, Management and System MCS)." Critically analyse with the issues in the process.
07

Explain the concept of Strategy Formulation Task Control with the implication of different corporate level strategies in designing Management Control Systems.
07
Q.2

Elucidate the term Goal Congruence. Discuss the role of informal factors having influence over the Goal Congruence in organizational control system.
07

Analyse the impact of internet on Management Control System.
07
OR

Explain the term Organisational Structure with its classifications and influence on the Management Control System.
07
Q.3

Critically analyse the term Responsibility Center . Justify by your logical mention that Franchisee is a Profit Center with the purpose served for the same.
07

Elucidate the term Profit Center. Analyse the merits and limitations of Profit Center to depict the important role in MCS.
07
OR
Q.3

Analyse the term Transfer Pricing'. Explain the important contribution of Transfer Pricing with the illustrative reference.
07

How the measure of relating Profits Assets are employed EVA V/S ROI with hypothetical practical application.
07
Q.4

What do you understand by Variance Analysis as element of Budgetary Control. Explain one variance Analysis with hypothetical example.
07

Describe the benefits and limitations of strategic Planning.
07
OR
Q.4

Critically explain the Activity base costing. How do we use it in the strategic planning process.
07

What is a standard Explain classification of standard. How the budgetary standards are determined used
07
Q.5

Discuss highlighting features of incentive compensation plan and suggest an ideal compensation plan for corporate CEO Business managers.
07

What should be the objectives of Management Control System of a banking organization Discuss some of the indicators of performance of a bank.
07
OR
Q.5

There are two business units, one levered and another unlevered each with a sales revenue and operating expenses of RS 100 And RS 50 respectively. The levered business has interest expense of RS 10.Tax is lent at 40% of earning. Find out the cash flow available to investors for each of the business units.
07

Discuss various long term incentive plans.
07