Model Questions

Answer should be confined to 200 - 250 words. 1. Explain the cybernetic paradigm of the control process? 2. Describe briefly five mutually supportive management sub-systems that are useful in describing management control systems. 3. What is corporate culture? Explain the effectiveness of corporate culture as a control mechanism. 4. How are management control processes different from simpler mechanical, electrical and other processes? 5. Describe the influence of managerial style on the design of control systems. 6. Explain the steps to be taken by management to impose cultural change within an organization. 7. Explain the steps involved in Zero Based Budgeting. 8. According to the nature of monetary inputs and outputs, responsibility centers are classified into four types. Briefly discuss. 9. Control of administrative expenses is difficult. Examine the statement. expense centers. 11. Explain the various types of profitability measures used to evaluate the performance of profit center managers. 12. Examine the appropriateness of multinational organizations to establish matrix organizations. 13. Distinguish a decentralized form from a centralized form of organization. How is management control systems implemented in a decentralized form of organization? 14. Explain briefly the different types of transfer pricing methods. 15. Explain in detail Two-step pricing and Profit sharing transfer pricing methods. 16. List the conditions under which the market price based transfer pricing method induces goal congruence. 17. Discuss the various types of formal standards used in evaluation of reports on the actual activities. 18. Variance analysis is certainly a powerful tool. However, it has limitations. Discuss the limitations of variance analysis. 10. Explain how engineered expense centers are different from discretionary

19. Describe the various revenue variances and write the equations to compute them. 20. One of the limitations of achievable targets is the possibility that business unit managers put forth satisfactory effort once the budget is met. Yet, most senior management approves achievable budgets. Put forth the reasons. 21. Briefly discuss the various categories of operating budgets. 22. Contrast Budgeting with forecasting with Strategic Planning. 23. What is Activity Based Costing? What is Target Costing? 24. No matter how specific the pricing rules, there may be instances in which business units will not be able to agree on a price (transfer pricing). How can organizations resolve this issue? 25. Why is management control in service industries different from management controls in manufacturing companies?