M.Com Question Papers

St. Joseph’s College of Commerce M.Com. 2012 IV Sem Enterprise Resource Management (ERM) Question Paper PDF Download

by
  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATIONS –April 2012

M.COM – IV Semester

 Enterprise Resource Management (ERM)

 

Time: 3 Hrs                                                                                                      Max. Marks : 100

Section – A

I)Answer SEVEN questions out of Ten.                                                                 (7 x 5 = 35)

 

  • Define the term ERP. Discuss the ERP Life Cycle.
  • Write down the history of ERP and enlighten its disadvantages.
  • What do you mean by Supply Chain Management? Discuss its nature and principles.
  • Define Logistics. Elucidate the elements of Logistics.
  • Discuss the Four Basic Constituents of ERP.
  • What is the Vendor Role in Implementing ERP Systems? Demonstrate with flow chart.
  • Discuss the various Post Implementation factors of ERP.
  • What is Business Process Reengineering (BPR)? Discuss its four dimensions.
  • Elucidate the success and failure factors of Business Process Reengineering (BPR)
  • Write short notes on: (a) Organizational Data (b) Transactional Data.

 

 

Section – B

  1. II) Answer THREE questions out of five.               (3 x 15 = 45)

 

  • Discuss the various Challenges of implementing ERP systems.
  • Assume that you are the personality selected by your management for implementing an enterprise resource planning package in a sports car industry. Explain briefly the different phases involved ERP implementation lifecycle. Discuss it with flow chart.
  • Discuss the present and future Growth of ERP Market in Indian Industrial scenario.
  • Write short notes on the following:
  • Gap Analysis (b) 3 Rs of Re-Engineering (c) Order Management System
  • What are the components of Supply Chain Management (SCM)? And also discuss the SCM’s various tasks.

 

 

Section – C

III) Compulsory Case study                                                                               (1 x 20 = 20)

 

You have been appointed as an ‘ERP consultant’for an MNC organization. The top management requires you to give a written proposal on the following before your implementation of ERP:

 

(a) Benefits of ERP.

(b) Process modeling for ERP.

(c) Characteristics of ERP systems.

(d) ERP implementation plan.

(e) Factors to make ERP effective.

 

How would you give the proposal?

 

 

St. Joseph’s College of Commerce M.Com. 2012 II Sem Strategic Human Resource Management Question Paper PDF Download

by

 

St. Joseph’s College of Commerce (autonomous)

End Semester Examination – April 2012

M.Com – II Semester

Strategic Human Resource Management

Time: 3 hours                                                                                                                Max. Marks: 100

Section – a

  1. I) Answer ALL the following questions. Each carries 2 marks.                           (10×2=20)

 

  1. What do you mean by Broad banding?
  2. Define Job analysis.
  3. State any two consequences of stress.
  4. Distinguish between job instruction and vestibule training.
  5. What is Projection?
  6. What is BARS?
  7. Define ‘Industrial accident’.
  • Enumerate any two characteristics of a learning organization.
  1. Give 4 examples of perquisites.
  2. Explain E-appraisal.

 

Section – b

 

  1. II) Answer any FOUR questions from the following:                     (4 x 5= 20)

 

  1. Critically analyze the hiring considerations for BPO firms.
  2. Define strategy and strategic management. Explain any two business strategies.
  3. What are the legal issues in performance management?
  4. What are the principles of wage fixation?
  5. Enumerate the different steps involved in collective bargaining.
  6. Explain the advantages and limitations of job evaluation as a basis for fixing wages and salaries.

Section – c

 

          III) Answer any THREE questions from the following:                                           (3×15=45)

 

  1. Some of the modern industries still follow the traditional techniques of performance appraisal. Do you think this system is apt? Defend your argument with reasoning. Explain any 5 traditional methods of performance appraisal.
  2. Explain the different steps of a grievance procedure?
  3. “Although nothing can be done about the past performance, the future and perhaps even the present performance can be made excellent provided proper

care is taken today to plan for the quantity and quality of tomorrow’s manpower.”Elucidate.

  1. Explain the functions of trade unions. Why do unions need security? What is the reason behind employees joining trade unions?
  2. What are the modern sources and techniques of recruitment?

 

 

 

Section – d

22.  Case Study  – Compulsory question.                                                                           (15marks)

 

Bharat Hotel Group is a family-owned hotel chain with-four major hotels in Delhi, Mumbai, Chennai and Bangalore. The hotels on the whole have 700 rooms and there are 50-60 employees in each hotel. A key strategy of the hotel‘s MD Ashok Rai was to offer high-class accommodation and facilities to generate revenue and business all round the year. Currently, the hotel offers different facilities like an outdoor terrace and pool, two bars, a leisure club for guests and members and a conference suite of function rooms. Apart from these, it also has two restaurants  out of which one is a high class restaurant which provides, lunch and dinner and another a snacks restaurant which offers light meals.

 

To improve the revenue and service strategy, the MD and senior management reviewed a few aspects of work. Firstly they reviewed their management approach and style. Under the guidance of the General Manager (GM), each branch was assigned program targets for success. These included the quality and standards of performance, excellence in customer service, hygiene, health and safety in each hotel, and maintaining the ambiance of the hotel. To do all this it was essential how the management handled employee communication and the contribution of the employees towards the organization’s success. To involve the whole organization in framing plans and policies, the management cascaded the business plan down to the general managers, each of whom produced an ”operational plan‘ for his respective hotel unit. Departmental heads then produced their own departmental plans and these were all communicated to all departmental staff. In addition, all the staff received a copy of the business plan. All these plans were integrated and a suitable plan of action was prepared.

 

Based on this, the GM and department Manager of each hotel became responsible for designing and implementing training needs. A Group Training Officer was appointed, who would report to the Group HR Manager. The main tasks of the Group Training Officer   included coordinating the analysis of training needs, evaluating training activities and ensuring that it was followed up afterwards and to act as a supporter and training facilitator for the manager of each hotel. The HR Manager made use of technology successfully by uploading the training materials on the
Internet, so that the managers and the staff could use a browser to access the materials via the group intranet. Training needs were linked to business objectives by focusing on standards of performance for meeting service quality objectives. Moreover, all the managers were trained to carry-out staff performance reviews. This was done by each head of department working individually with his or her staff to agree upon the standards of performance relating to service quality. In addition, each member of the staff described his/her job role, the key result areas and yardsticks for measuring performance, and the methods through which his/her performance could be improved. Moreover, for the benefit of the employees, a staff handbook was prepared as a guide. The guide included codes of quality service and employee conduct. Several training courses were made mandatory for all the staff. The training classes were run by departmental managers who also received training. The aim of this training program was two-fold: to make training a routine task in the organization and to bring about a sense of commitment to them. This could help in making the staff realize that excellence in performance, competence and learning is valued and necessary.

The results of all these activities became slowly visible. The company‘s gross profits increased by 34 percent.

Questions:

  1. What are the training needs of the employees at Bharath Hotel? (7 marks)
  2. Technology can be useful for delivering training effectively. How did the HR
    Manager of Bharat Hotels utilize the Internet in training and what are the
    advantages of using Internet based training?  (8 marks)

                                       **************************

St. Joseph’s College of Commerce M.Com. 2012 II Sem Securities Analysis And Portfolio Management Question Paper PDF Download

by

ST.JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMSTER EXAMINATION – APRIL 2012

M.COM – II SEMSTER

SECURITIES ANALYSIS AND PORTFOLIO MANAGEMENT                           

TIME : 3 HOURS                                                                                                  Total Marks- 100

Section-A

  1. Answer any seven                                                                           (7X5=35)

 

  • What do you mean by EMH? Bring out its various forms?
  • The rates of return on stock B is given .Determine the AM and GM

Year                         Return on B (%)

1                                      15

2                                      25

3                                    -10

4                                     20

5                                      15

 

  • What steps would an investor follow to make an investment?
  • Explain the Markowitz model?
  • Write a note on company analysis?
  • Explain in detail the Dow Theory?
  • What is Industry Life Cycle? Also mention any 3 Characteristics that are to be evaluated in Industry analysis?
  • Explain CRA’s?
  • Differentiate SML and CML?
  • Write in detail how Gain or Loss occur for the buyer and the writer in case of call and put option?

Section – B

 

  1. Answer any three    (3X15=45)

 

  •  Explain efficient frontier and optimal portfolio?
  • The returns of two assets under 4 possible states of nature are given below

 

State of nature      Probability       Return on asset 1             Return on asset 2

1                          0.10                         5%                                     0%

2                          0.30                        10%                                   8%

3                          0.50                        15%                                  18%

4                          0.10                        20%                                  26%

 

  1. What is the standard deviation of the return on asset 1 and asset 2?
  2. What is the co-variance between the returns of the assets
  3. What is the co-efficient of correlation between them?
  • What are the different risks inherent in the dealings of mutual funds? Also explain the methods by which you can evaluate the performance of mutual funds?
  • What are charts? How are they interpreted in technical analysis?
  • Define economic forecasting. Explain the important forecasting techniques? (3X15=45)

SECTION- C

  • Compulsory Question                                                                                       (1X20=20) 

                             

  • a) What is a risk? Differentiate unique risk and Market risk?

 

  1. b) The returns on the Equity stock of Auto Electricals Limited and the market portfolio over a 15 year period are given below. Calculate 1) Beta and Alpha for the stock of Auto electrical Limited (2) Characteristic line for the stock of Auto Electricals Limited

Year                       Return on Stock of                               Return on Market Portfolio

Auto electrical Limited

1                                  10                                                        12

2                                  15                                                        14

3                                  18                                                        13

4                                  14                                                        10

5                                  16                                                        9

6                                  16                                                        13

7                                  18                                                        14

8                                  4                                                          7

9                                  -9                                                         1

10                                14                                                        12

11                                15                                                        -11

12                                14                                                        16

13                                6                                                          8                                                          14                         7                                                          7

15                                -8                                                         10

 

 

 

St. Joseph’s College of Commerce M.Com. 2012 II Sem Operation Research Question Paper PDF Download

by
  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester Examinations – MARCH / APRIL 2012

M.Com. – II Semester

OPERATION RESEARCH

Duration: 3 Hrs                                                                                                              Max. Marks: 100  Section – A

  1. Answer SEVEN questions out of Ten.                   (7 x 5 = 35)

 

  1. Discuss various steps for solving an operation research problem. Illustrate with one example from the functional area of your choice.

 

  1. Determine the trend line and the forecast the production for the year 2013.

YEAR                          PRODUCTION

2005                            100

2006                            225

2007                            175

2008                            199

2009                            250

2010                            255

2011                            275

 

  1. An airline organization has one reservation clerk on duty in its local branch at any given time. The clerk handles information regarding passenger reservation and flight timings. Assume that the number of customers arriving during any given period is Poisson distributed with an arrival rate of eight per hour and that the reservation clerk can service a customer in six minutes on an average, with an exponentially distributed service time:

1) what is the probability that the system is busy?

2) what is the average time a customer spends in the system?

3) what is the average length of the queue?

4) what is the number of customers in the system?

 

  1. What is Dynamic programming? Describe the characteristics of Dynamic Programming.

 

  1. A care hire company has one car at each of the five depots a, b, c,d, and e. A customer in each of the five towns A,B,C,D and E requires a car. The distance in miles between the depots and towns where the customers are given in the following distance matrix:
                                   TOWN
 

 

PERSON

   a b c D e
A 160 130 175 190 200
B 135 120 130 160 175
C 140 110 155 170 185
D 50 50 80 80 110
  E 55 35 70 80 105

How the cars should be assigned to the customers so as to minimize the distance travelled.

 

  1. A company has three factories A,B and C which supply to 4 warehouses at P,Q, R and S. The monthly production capacity (tons) A,B and C are 120, 80 and 200 resp. The monthly req ( tons) for warehouses P,Q,R and S are 60, 50, 140 and 50 resp. The transportation cost (Rs per ton) Matrix is given below:
Warehouses                          Factories
  A B C
P 4 3 7
Q 5 8 4
R 2 4 7
S 5 8 4

Use NWCR and Vogel’s Approximation Method to determine transportation distribution of product to warehouses to minimize transportation cost.

 

  1. A company produces two types of products Type A and Type B. Product B is of superior quality and product A is of lower quality. Profits on two types of products are Rs 30 and Rs 40 respectively. The data resources required and availability of resources are given below:

Requirement

  Product A Product B Product C
Raw Material 60 120 12000
Machine Hours 8 5 630
Assembly 3 4 500

How should the company manufacture the two types of products in order to get maximum overall profits?

 

  1. Define degeneracy. Discuss with the help of examples how degeneracy can be

resolved in a transportation problem at the initial stage.

 

  1.     Discuss the steps of forming a dual with the help of an example.

 

  1.    Define Slack, surplus and artificial variables.

 

Section – B

  1. Answer THREE questions  out of Five.                                      (3 x 15 = 45)

 

  1. A small garment making unit has five tailors stitching five different types of garments. The output per day per tailor and the profit( rs ) for each type of garment are given below:
TAILORS                           GARMENTS
  1 2 3 4 5
A 7 9 4 8 6
B 4 9 5 7 8
C 8 5 2 9 8
D 6 5 8 10 10
E 7 8 10 9 9
PROFIT PER GARMENT 2 3 2 3 4

 

Which type of garment should be assigned to which tailor in order to maximize profit assuming that there are no other constraints?

  1. A Company has four terminals u,v,w and x. At the start of a particular day 10,4,6 and 5 trailers respectively are available at these terminals. During the previous night 13,10, 6 and 6 trailers respectively were loaded at plants A,B,C and D. The Company dispatcher has come up with the costs between the terminals and plants as follows:
Terminals                                 Plants
  A B C D  
U 20 36 10 28  
V 40 20 45 20  
W 75 35 45 50  
x 30 35 40 25  

Find the allocation of loaded trailer from plants to terminals in order to minimize transportation costs.

  1. A rural health centre receives a delivery of fresh blood plasma once each week from a city blood bank. The supply varies according to demand from other clinics and hospitals in the region but ranges between four and nine litres of the most widely used blood type (blood O). The number of patients per week requiring this blood varies from zero to four and each patient may need from one to four litres of blood. The delivery quantities, patient distribution and demand per patient are given below:

Table 1. Delivery Quantities:

Litres per week Probability
4 0.15
5 0.20
6 0.25
7 0.15
8 0.15
9 0.15
total 1.00

 

Table 2. Patient Distribution:

Patients per week requiring blood              Probability
0 0.25
1 0.25
2 0.30
3 0.15
4 0.05
Total 1.00

Table 3. Demand per Patient

Litres Probability
1 0.40
2 0.30
3 0.20
4 0.10

RN for Quantity Delivered: 10,31,02,53,16,40

RN for patients needing blood: 85,28,72,44,16,83

RN or quantity required: 21,06,61,96,12,67,23,65,34,82.

Determine the number of litres of blood in excess or short for a six week period using simulation technique. Assume that the blood is storable and current stock is 3 litres.

  1. Analysis of data on customer arrivals at a fast food restaurant has revealed that the mean arrival rate is 45 customers per hour and is found to follow a Poisson distribution. The service time starts when a customer begins to place the order with the food server and continues until the customer has received the order.

Quantitative analysis has revealed that the probability distribution for the service time can be assumed as exponential distribution and the mean servicing rate is 60 customers per hour. Assuming that the restaurant has single channel characteristics, calculate:

  1. probability that no customers are in the system
  2. the average number of customers in the queue
  3. average number of customers in the system
  4. average time a customer spends in the waiting line
  5. the average time the customer spends in the system.
  6. Discuss the various techniques used under Operation research for decision making. Give examples to support your answer.

Section – C

  • Compulsory Case study (No choice)                              (1 x 20 = 20)

           

The ABC company combines factors X and Y to form a product which must weigh 50 kgs. At least 20 kgs of X and no more than 40 kgs of Y can be used. X costs Rs 25 and Y Rs 10 per kg. Find out amount of factor X and factor Y to be used manufacturing the product. Use Simplex Method.

 

 

St. Joseph’s College of Commerce M.Com. 2012 II Sem Marketing Strategies And Planning Question Paper PDF Download

by
  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATIONS –APRIL 2012

M.COM  –  II SEMESTER

      MARKETING STRATEGIES AND PLANNING

Time: 3 Hrs                                                                                                   Maximum: 100

Section – A

  1. Answer any Seven                                         (7 x 5 = 35)

 

  1. What is Marketing Environment? Discuss the forces influence an organization’s operating environment.
  2. What do you mean by Industrial Products? State its types and characteristics.
  3. Distinguish between Industrial Marketing and Consumer Marketing.
  4. Define the word buying centre. Discuss the Roles of Buying Center Members.
  5. Discuss the Buyer-Seller Relationships in CRM.
  6. Discuss the process of Product Life Cycle (PLC).
  7. Write short notes on the following:

(a) E- Commerce (b) Customer Relationship Management (CRM)

  1. What is Negotiation? How to plan for effective Negotiation?
  2. Define Marketing intelligence system. Talk about its process.
  3. What is Distribution Channel? State its functions.

 

Section – B

  1. Answer any THREE                                               ( 3 x 15 = 45)

 

  1. What is Marketing Research? Elucidate the various Marketing Research Process.

12.Define Organization Buying Behavior. Discuss the various factors influencing Organizational Buying.

  1. Explain the concept of New Product Development. Elucidate the stages involved in the process of developing new products.
  2. Write Short Notes on

(a) Logistics Management (b) Physical Distribution (c) Organizational Buying Behavior Model (d) Corporate Strategy (e) Market Segmentation.

  1. Critically examine the factors Affecting Pricing Decisions.

Section – C

 

  • COMPULSORY – CASE STUDY (20 marks)

 

Marketing Decision:  Bank of America: Appealing to Multiple Customer Categories

The merger between previous BankAmerica and Nations Bank to form Bank of America now leaves Hugh McColl in charge of an organization with $614 billion in assets. This makes Bank of America the largest and most nationwide bank, larger than Citicorp and Chase Manhattan. The bank has some form of relationship with more than two million businesses, 85 percent of the nation’s largest businesses, and over 30 million households. Now earnings growth hinges on making the bank’s 4,500 branches and 14,000 ATMs run smoothly. The results of frequent acquisitions to build a company this size, as well as managerial turnover associated with buying firms, have caused problems in transition and loss of market share in some areas. In addition, operating costs are increasing. The general process following the bank’s acquisitions is to feature streamlined, lightly staffed branches.

The eventual key to success will be the ability of Bank of America to handle its various customer types and its own employees. For example, the identification of customers by profitability is a concern. Bankers encourage profitable customers by offering CDs at premium rates and discourage non profitable customers by charging them higher checking fees; the ability to make these distinctions was limited after the merger with Barnett Banks in Florida. Bank of America also lost a significant share of its private trust customers after it took over Boatman’s Bancshares in Missouri. As Bank of America develops its new product identity, plans include a new initiative to train branch bankers to handle more small-business products. On the positive side, Bank of America Corp. has announced it will no longer give out customer information to telemarketers.

McColl argues that the mergers enhance scale, which enables the company to spread costs over a larger customer base and is more important as the financial services industry becomes more technology driven .Moreover, consolidation in the industry has been fueled by the encroachment of nonbank competitors and changing regulations that have allowed banks to expand into new product categories, as well as into new geographic regions.

 

Questions:

 

  1. What obstacles does Bank of America face in its operations as a national bank operating across such a diverse geographical area?
  2. How do banks organize their operations in regard to customer categories?
  3. What difficulties arise in providing customer service for such large and complex organizations?
  4. What opportunities for competition confront Bank of America?

 

 

 

St. Joseph’s College of Commerce M.Com. 2012 II Sem Business Research Methodology Question Paper PDF Download

by
  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester Examinations – APRIL 2012

M.Com. – II Semester

Business Research Methodology

Duration: 3 Hrs                                                                                                             Max. Marks: 100 

Section – A

  1. Answer Seven questions out of Ten.                             (7 x 5 = 35)

 

  1. Write briefly on the characteristics of Business Research.
  2. Explain the terms induction and deduction with suitable examples.
  3. Discuss briefly the significance of literature review.
  4. What is a research problem? What are the techniques of formulating a research problem?
  5. Explain briefly the various types of errors that can result from a hypothesis test.
  6. What is meant by observation method? What are the different methods of observation?
  7. What is meant by snowball sampling? Explain with suitable examples.
  8. What precautions are to be taken before writing research reports?
  9. MRF company finds that tire life is normally distributed with a mean of 40,000 kms and standard deviation of 3000 kms. A change in production process was effected. As a result a better product was developed. A sample of 64 tires has been selected. The mean life of new tires is 41,000 kms. Can it be concluded that the new tires is significantly better than the old one?
  10. Prices of shares of a company on different days in a month were found to be:

66, 65, 69, 70, 69, 71, 70, 63, 64, 68. Discuss whether the mean price of the shares be 65. (the table value of t= 2.262)

Section – B

  1. II) Answer any THREE questions out of Five.                                                 (3 x 15 = 45)

 

  1. How would you define research? What are the different types of research studies?

 

  1. What are the essentials of a good research design? State its importance. Write on the research designs meant for different types of studies.

 

  1. Can a questionnaire be used in all situations? Why/why not? What are the important factors that have to be considered while framing questionnaire? Distinguish between a questionnaire and a schedule.

 

  1. Discuss in detail the steps that a researcher needs to follow to formulate a good research report. Do the criteria become different for different kinds of report.

 

  1. A movie producer is bringing out a movie. In order to map out his advertisement campaign, he wants to determine whether the movie will appeal most to a particular age group or whether it will appeal equally to all age groups. The producer takes a random simple from persons attending a preview of the new movie and obtain the following results:

 

Respondents Age Groups
Under 20 20-39 40-59 60 & over Total
Liked the movie 146 78 48 28 300
Disliked the movie 54 22 42 22 140
Indifferent 20 10 10 20 60
Total 220 110 100 70 500

 

(for v = 5, X20.05 = 11.1; v=6, X20.05 = 12.59, v=7, X20.05 = 14.1)

What inference will you draw from this data?

 

Section – C

  1. Compulsory Case study                                                 (1 x 20 = 20)

 

Mr. Mehta has a chain of restaurants in many cities of northern parts of India and was interested in diversifying his business. His only son, Kamal never wanted to be in the hospitality line. To settle Kamal into a line which would interest him, Mr. Mehta decided to venture into garment manufacturing. He gave this idea to his son, who liked it very much. Kamal has already done a course in fashion designing and wanted  to do something different for the customers of this industry. An idea struck him that he should design garments for people who are very bulky but want a lean look after wearing readymade garments. The first thing that came to his mind was to have an estimate of people who wore large sized shirts (40 size and above) and large sized trousers (38 size and above).

A meeting was called of experts from the garment industry and a number of fashion designers to discuss on how they should proceed. A common concern for many of them was to know the size of such a market. Another issue that was bothering them was how

 

 

to approach the respondents. It was believed that asking about the size of their shirt or trouser may put them off and there may not be any worthwhile response. A suggestion that came up was that they should employ some observers at the entrance of various malls and their job would be to look at people who walked into the mall and see whether the concerned person was wearing a big sized shirt or trouser. This would be a better way of approaching the respondents. This procedure would help them to estimate in a very simple way the proportion of people who wore big sized garments.

Questions:

  • Name the sampling design that is being used in the study. Do you think it is a suitable method.

 

  • What are the limitations of the design so chosen?

 

  • Can you suggest a better design?

 

  • What method of data collection is being employed? What other methods can be employed?

 

 

St. Joseph’s College of Commerce M.Com. 2012 II Sem Advanced Management Accounting Question Paper PDF Download

by

ST.JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester Examination – APRIL 2012

M.Com – II semester

ADVANCED MANAGEMENT ACCOUNTING

Duration: 3 Hrs                                                                                                             Max. Marks: 100 

Section – A

  1. Answer SEVEN questions out of Ten.                  (7 x 5 = 35 )

 

  1. What is ABC? Why is it needed?  What is a cost driver?  What is the role of cost driver in tracing costs to product?
  2. What is a transfer price? Explain any 4 transfer pricing systems.
  3. A company has a capacity of producing 1, 00,000 units of a certain product in a month. The sales department reports that the following schedule of sale price is possible:
Volume of production Selling price per unit
60%

70%

80%

90%

100%

 0.90

0.90

0.75

0.67

0.61

The variable cost of manufacture between these levels is Rs. 0.15 per unit and fixed cost Rs. 40,000.  At which volume of production will the profit be maximum?

 

  1. BC limited has the following book value capital structure:
Particulars Rs. Million
Equity shares capital (150 million shares Rs. 10 par)

Reserves and surplus

10.5% Preference share capital (1 million shares of Rs 100 each)

9.5% debentures (1.5 million debentures Rs. 1000 par)

15% term loans from financial institutions

 1500

2250

 

100

1500

500

The debentures of ABC limited are redeemable after three years and are quoting Rs. 981.05 per debenture.  The applicable income tax rate is 35%

The current market price per equity share is Rs. 602.  The prevailing default risk free interest is 5.5%.  The average market risk premium is 8%.  The beta of the company is 1.1875.

The preferred stock of the company is redeemable after 5 years and is currently selling Rs. 98.15 per preference share.

Calculate weighted cost of capital of the company using market value weights.

 

  1. What are the various pricing strategies? Explain any 4.
  2. Explain the process of implementing a balance score card in a company.
  3. What is Benchmarking? What is the process of benchmarking?
  4. Explain the concept of cost of quality in relation to Total quality management
  5. Explain the concept of marginal costing as a cost accounting technique.
  6. Explain the concept of value chain management.

 

Section – B

  1. Answer THREE question  out of Five.                                        (3 x 15 = 45)

 

  1. An agriculturist has 480hectares of land on which he grows potatoes, peas, and carrots. Out of the total area of land 340 hectares are suitable for all four vegetables but the remaining 140 hectares of land are suitable only for growing peas and carrots.  Labour for all kinds of farm works is available in plenty.  The market requirement is that all the four types of vegetables must be produced with the minimum of 5000 boxes each.  The farmer has decided that the area devoted to any one crop should be in terms of complete hectares and not in fractions of a hectare.  The only other limitations are that not more than 1, 13,750 boxes of any one vegetable should be produced.

The relevant data concerning production, market prices and costs are as under

particulars Potatoes Peas Carrots Tomatoes
Annual yield : boxes per hectare

Costs

Direct material per hectare

Direct labour per hectare

Harvesting per box

Transport per box

Market price per box

 350

Rs.

952

1792

7.20

10.4

30.76

 100

Rs.

432

1216

6.56

10.40

31.76

 70

Rs.

384

744

8.80

8.00

36.80

 180

Rs.

624

1056

10.40

19.20

44.55

It is possible to make the land presently suitable for peas and carrots, viable for growing potatoes and tomatoes if certain land development work is undertaken. This work will involve a capital expenditure of Rs. 6,000 per hectare which a bank is prepared to finance at the rate of 15% per annum.  If such improvement is undertaken, harvesting cost of the entire crop of tomatoes will decrease on an average by Rs. 2.60 per box.

 

Required

  • Calculate the area to be cultivated with respect to each crop within the constraints and profits before land development work is undertaken
  1. After development of land, find the acres of land for each product and also find maximum profits.

 

 

  1. A toy manufacturer earns an average net profit of Rs. 3 per piece in a selling price of 15 by producing and selling 60,000 pieces at 60% of the potential capacity. Composition of his cost of sales is
  • Direct material Rs. 4
  • Direct wages Rs. 1
  • Works overhead Rs. 6 (50% fixed)
  • Sales Re. 1 (25% variable)

During the current year, he intends to produce the same number but anticipates that:

  1. The fixed charge will go up by 10%
  2. Rates of direct labour will increase by 20%.
  3. Rates of direct material will increase by 5%.
  4. Selling price cannot be increased.

Under these circumstances he obtains an order for a further 20% of his capacity.  What minimum price will you recommend for accepting the order to ensure the manufacture an overall profit of Rs. 1,80,500?

 

 

  1. The cost per unit of the three products A,B and C of a concern is as follows:
  A B C
Direct materials

Direct labour

Variable expenses

Fixed expenses

Total cost

Profit

Selling price

Number of units produced

 10

6

4

3

23

9

32

10,000

 8

7

5

3

23

7

30

5000

 9

6

3

2

20

6

26

8000

Production arrangements are such that if one product is given up the production of the others can be raised by 50%.  The directors propose that C should be given up because the contribution in that case is the lowest.  Do you agree?

 

  1. Alpha limited is considering fiver capital projects for the years 2010 and 2011. The company is financed by equity entirely and its cost of capital is 12%.  The expected cash flows of the project are as below:

(‘000)

Project Year 1 Year 2 Year3 Year 4
A

B

C

D

E

 (70)

(40)

(50)

 

(60)

 35

(30)

(60)

(90)

(20)

 35

45

70

55

40

 20

55

80

65

50

Figures in brackets represent cash outflows

All projects are divisible.  None of the projects can be delayed or undertaken more than once.  Calculate which project the company should undertake if the capital available for investment is limited to Rs. 1, 10,000 in year 1 and with no limitation in subsequent years.

 

  1. Explain the financial and non financial measures of business performance measurement.

 

                                                                                                                             P.T.O……

 

 

 

 

 

Section – C

  1. Compulsory Case study (No choice)                                  (1 x 20= 20)
  2. A businessman employs 20swing machinists, but he is aware that ten are the better workers than others. He is considering conducting a training programme for his ten less efficient mechanists to increase their efficiency to be equal to that achieved by better workers.  Relevant data are as follows:
  • There is one sewing machine for each machinist
  • All the mechanists are engaged on similar work  are paid Rs. 2.20 each for good garment produced on piece work system
  • To rectify each rejected garment costs Rs. 4, this work is done by subcontractor
  • Garment machining department operates 2000 hours a year
  • Average output of per machinist (on the basis of 20 machinists) is 12 good garments with one rejected per worker per hour.  However 10 less efficient machinists averages only 10 good garments with 1.5 rejected per worker per hour
  • Depreciation of each machine is Rs. 10,000 per year and the variable cost of power, cleaning, preventive maintenance is Rs 5per hour per machine
  • Fixed production overhead other than depreciation is Rs. 20 per machine hour
  • Selling price per garment Rs. 18
  • Direct material cost per garment Rs. 12
  • Training will not reduce productive hours
  • There is no problem in selling increased output.

You are required:

  • To prepare a statement of comparative costs for the better workers and the less efficient workers excluding material cost.
  • To find out the benefit derived over a one year period if Rs. 1, 00,000 is spent on a training course for the less efficient workers to match the efficiency with the better workers.

 

© Copyright Entrance India - Engineering and Medical Entrance Exams in India | Website Maintained by Firewall Firm - IT Monteur