Management Control Systems Question Papers Pune University
Instructions to the candidates:
1) Attempt any three questions/rom Q. 1 to Q. 5.
2) Q. NO.6 is compulsory.
3) Figures to the right indicate full marks.
Ql) Distinguish clearly between strategic planning, management control and task
control with examples. 
Q2) "A Sound Audit system strengthens management Control" critically examine
this statement in respect of the financial audit, Cost Audit and Management
Q3) "Balance score card started as a performance measurement system but has
ended up as a full fledged management control system". Explain with
suitable examples. 
Q4) Explain the various types of responsibility centre in detail. 
Q5) Write a short note on (any three) : 
a) Goal congruence.
b) Just in time.
c) Budgeting for R & D ..
d) Control systems in service organisation.
e) Bench marking and total cost management.
Q6) a) A company fixes the inter divisional transfer prices for its product on the
basis of cost plus estimated return on investment in its divisions. The
relevent portion of the budget for division' A' for year 2007-08 is given
Fixed Assets Rs.5, 00,000
Current Assets (other than debtors) Rs.3, 00,000
Debtors Rs.2, 00,000
Annual fixed cost of division Rs.8, 00,000
Variable cost per unit of product Rs.10
Budgeted volume of production per year (units) 4,00,000 desire return on investment 28%.
Youare require to determine transfer price for division 'A'. 
Division 'A' and 'B' are both considering an outlay on new investment projects.
Net return on new}
The companies cost of capital is 13%. Should the project be accepted or rejected?