M.Com

St. Joseph’s College of Commerce M.Com. 2011 IV Sem Strategic Financial Management Question Paper PDF Download

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St. Joseph’s College of Commerce (Autonomous)

 

End Semester Examination – April 2011

M.Com – IV Semester

Strategic Financial Management

 

Duration: 3 Hours                                                                                   Max. Marks: 100

 

Section – A

 

I)Answer TEN questions.  Each carries 2 marks.                                            (10×2=20)

 

  • What is a Strategy?
  • What is the meaning of Cost of Capital?
  • What is Demerger?
  • What is Ethical Brand Equity?
  • What is the meaning of Acquisition?
  • What is role of Executive Compensation under value Based Management?
  • What is the main objective of BCG Approach?
  • What is the meaning of Enterprise Governance?
  • What is the meaning of Indexed Stock options?
  • Differentiate between EPS & EBIT?
  • What is the importance of Market to Book Ratio?
  • Explain the acronym CFROI.

 

Section – B

 

II)Answer any FOUR questions.  Each carries 5 marks.                            (4×5=20)

 

  • Write a short note on Balanced Score Card.
  • Differentiate between MVA & EVA.
  • Explain the areas of Value thinking with reference to Mckinsey Approach.
  • What are the features of Strategic Financial Management?
  • What are the kinds of takeover?
  • What are the Ethical Dilemmas faced by a Strategic Financial Manager?

 

Section – C

 

III) Answer any THREE questions.  Each carries 15 marks.                      (3×15=45)

 

  • Briefly explain the interface of financial policy & strategic policy.
  • Explain the Concept involved in EBITDA.
  • What are the different approaches in calculation of Corporate Approach?
  • What are the factors affecting Dividend Policy?
  • What are the strategies used against anti-take over bids.

 

 

Section – D

 

  1. IV) Compulsory

question –  Case Study                                                            (15 marks)

 

  • Mergers and Acquisition – A Case Study and Analysis of HP-Compaq Merger

HP

It all began in the year 1938 when two electrical engineering graduates from Stanford University called William Hewlett and David Packard started their business in a garage in Palo Alto. In a year’s time, the partnership called Hewlett-Packard was made and by the year 1947, HP was incorporated. The company has been prospering ever since as its profits grew from five and half million dollars in 1951 to about 3 billion dollars in 1981. Starting with manufacturing audio oscillators, the company made its first computer in the year 1966 and it was by 1972 that it introduced the concept of personal computing by a calculator first which was further advanced into a personal computer in the year 1980. The company is also known for the laser-printer which it introduced in the year 1985.

 

Compaq

The company is better known as Compaq Computer Corporation. This was company that started itself as a personal computer company in the year 1982. It had the charm of being called the largest manufacturers of personal computing devices worldwide. The company was formed by two senior managers at Texas Instruments. The name of the company had come from-“Compatibility and Quality”. The company introduced its first computer in the year 1983 after at a price of 2995 dollars. In spite of being portable, the problem with the computer was that it seemed to be a suitcase. Nevertheless, there were huge commercial benefits from the computer as it sold more than 53,000 units in the first year with a revenue generation of 111 million dollars.

 

Reasons for the Merger

 

Carly Fiorina, who became the CEO of HP in the year 1999, had a key role to play in the merger that took place in 2001. She was the first woman to have taken over as CEO of such a big company and the first outsider too. She worked very efficiently as she travelled more than 250,000 miles in the first year as a CEO. Her basic aim was to modernize the culture of operation of HP. She laid great emphasis on the profitable sides of the business. This shows that she was very extravagant in her approach as a CEO. In spite of the growth in the market value of HP’s share from 54.43 to 74.48 dollars, the company was still inefficient. This was because it could not meet the targets due to a failure of both company and industry. HP was forced to cut down on jobs and also be eluded from the privilege of having Price Water House Cooper’s to take care of its audit. So, even the job of Fiorina was under threat. This meant that improvement in the internal strategies of the company was not going to be sufficient for the company’s success. Ultimately, the company had to certainly plan out something different. So, it

 

was decided that the company would be acquiring Compaq in a stock transaction whose net worth was 25 billion dollars. Initially, this merger was not planned. It started with a telephonic conversation between CEO HP, Fiorina and Chairman and CEO Compaq, Capellas. The idea behind the conversation was to discuss on a licensing agreement but it continued as a discussion on competitive strategy and finally a merger. It took two months for further studies and by September, 2001, the boards of the two companies approved of the merger. In spite of the decision coming from the CEO of HP, the merger was strongly opposed in the company. The two CEOs believed that the only way to fight the growing competition in terms of prices was to have a merger. But the investors and the other stakeholders thought that the company would never be able to have the loyalty of the Compaq customers, if products are sold with an HP logo on it. Other than this, there were questions on the synchronization of the organization’s members with each other. This was because of the change in the organization culture as well. Even though these were supposed to serious problems with respect to the merger, the CEO of HP, Fiorina justified the same with the fact that the merger would remove one serious competitor in the over-supplied PC market of those days. She said that the market share of the company is bound to increase with the merger and also the working unit would double.

 

Question:

 

Critically analyse the decision for merger in the above case and put forward your justifications.

 

 

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St. Joseph’s College of Commerce M.Com. 2011 IV Sem Project Appraisal And Finance Question Paper PDF Download

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St. Joseph’s College of Commerce (Autonomous)

End Semester Examination – April 2011

M.Com – IV SEMESTER

PROJECT APPRAISAL AND FINANCE

Duration: 3 Hours                                                                                           Max. Marks: 100

SECTION – A

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

 

  1. Why are capital expenditure often the most important decision taken by a Firm?
  2. Mention any four sources to identify Project ideas.
  3. What is Project rating Index?
  4. Mention any four factors leading to error & uncertainty.
  5. Mention the key steps in sample survey.
  6. Give any four Project Charts that are prepared for a Project.
  7. Why does money have a time value?
  8. List any four techniques of Risk Analysis.
  9. What is shadow Price of traded goods?
  10. What is PERT activity & event?

 

SECTION – B

II)Answer any FOUR  questions.  Each carries 5 marks.                                         (4×5=20) 

 

  1. Explain Porter Model as a tool for identifying investment opportunities.
  2. Explain various methods of Demand Forecasting.
  3. What is weighted average cost of capital? How do you compute this & what is its relevance?
  4. Bring out the difference between NPV & IRR as a technique of evaluating Capital budgeting decision.
  5. Explain Project Life Cycle.
  6. What are the problems faced as a Project Manager. How would you administer them?

 

SECTION – C

III)Answer any THREE questions.  Each carries 15 marks.                                  (3×15=45)

 

  1. How would you evaluate Indian Venture Capital Industry.
  2. Explain in detail the Facets of Project Analysis.
  3. Explain the various components of Costs of a Project.
  4. Naveen Enterprises is considering a capital project about which the following innformation is available. The investment outlay on the project will be Rs. 100 million. This consists of Rs. 80 million on  plant and machinery and Rs. 20 million on net working capital. The outlay will be incurred at the beginning of the project.

The project will be financed with Rs. 45 million of equity capital, Rs. 5 million of preference capital, and Rs. 50 million of debt capital. Preference capital will carry a dividend rate of 15 percent; debt capital will carry an interest rate of 15 percent. The life of the project is expected to be 5 years. At the end of 5 years, fixed assets will fetch a net salvage value of Rs. 30 million whereas net working capital will be liquidated at its book value. The project is expected to increase the revenues of the firm by Rs. 120 million per year. The increase in costs on account of the project is expected to be Rs. 80 million per year. (This includes all items of cost other than depreciation, interest, and tax). The effective tax rate will be 30 per cent. Plant and machinery will be depreciated at the rate of 15 percent per year as per the written down value method. Hence, the depreciation charges will be:

First year                   :                      Rs. 12.00 million

Second year               :                      Rs. 10.20 million

Third year                 :                      Rs. 8.67 million

Fourth year               :                      Rs. 7.37 million

Fifth year                   :                      Rs. 6.26 million

Given the above details, Prepare the project cash flows.

 

  1. You have identified the following activities, events and their interdependence.

 

Activity           Predecessor            Successor             Estimated            Crash             Crash   

                                                                                    Time(weeks)        Time            Cost per week  

A (1-2) start d 4.0 3.2 Rs. 1,250
B (1-3) start c, e 3.0 2.5 2500
C (3-6) b h 6.5 5.3 3000
D (2-4) a f 3.5 3.0 2400
E (3-5) b g 4.2 3.5 1850
Fx (4-6) d h 0.0 —– —–
G (5-6) e h 3.3 3.0 1100
H (6-7) g finish 2.5 2.1 1700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

You are required to prepare a network daigram with time activities and events. Identify  different paths for the completion of the project. Identify  critical path . identify EST, EFT, LST,  LFT . Also calculate total slack and free slack.

 

 

 

 

 

 

 

SECTION -D

  1. IV) Compulsory question.                                                                   (15 marks)

 

  1. Sona Limited is a leading manufacturer of automotive components. It supplies to the original equipment manufacturers as well as the replacement market. Its projects typically have a short life as it introduces new models periodically.

 

You have recently joined Sonal limited as a financial analyst reporting to Suresh Gopal, the CFO of the company.  He has provided you the following information about three projects, A, B and C that are being considered by Executive Committee of Sona Limited:  Project A is an extension of an existing line.  Its cash flow will decrease over time.  Project B involves a new product.  Building its market will take some time and hence its cash flow will increase over time.  Project C is concerned with sponsoring a pavilion at a Trade Fair.  It will entail a cost initially which will be followed by a huge benefit for one year.  However, in the year following that a substantial cost will be incurred to raze the pavilion.  The expected net cash flows of the three projects are as follows:

Year Project A Project B Project C
0 (5000) (5000) (5000)
1 3500 1000 15000
2 2500 3000 (10000)
3 1500 4000 –

 

 

 

 

 

 

 

 

Suresh Gopal believes that all the three projects have risk characteristics similar to the average risk of the firm and hence the film’s cost of capital, viz. 12 percent, will apply to them. You are asked to evaluate the projects.

 

  • What is payback period and discounted payback period? Find the payback periods and discounted payback periods of Projects A and B.

 

  • Calculate the NPVs of  projects A, B, and C.

 

  • Calculate the IRRs of  Projects A, B, and C.

 

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St. Joseph’s College of Commerce M.Com. 2011 IV Sem International Accounting Question Paper PDF Download

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St. Joseph’s College of Commerce (Autonomous)

END SEMESTER EXAMINATION –  APRIL 2011

M.Com. – IV SEMESTER

International Accounting

Time: 3 hours                                                                                          Max Marks: 100

Section-A

 

  1. Answer ALL the following questions.     (2X10=20)

 

  1. Define international accounting.
  2. What do you mean by environmental reporting?
  3. Give the meaning of comparable uncontrolled price method of transfer pricing.
  4. Highlight on the role of financial reporting council.
  5. What do you mean by code-law and common-law countries?
  6. Give the meaning of Reportable Segment.
  7. Differentiate between Transaction, Translation and Economic Exposure.
  8. Give the meaning of foreign currency exposure.
  9. 9. Elucidate on the three approaches to currency translation.
  10. Explain resale price method of transfer pricing.

 

Section-B

 

  1. Answer any FOUR of the following questions:      (4X5=20)

 

  1. Highlight on the importance of international accounting.
  2. Write a note on the functioning of the IASC.
  3. Highlight on the Non-traditional methods of transfer pricing.
  4. Elucidate on IFRS-8-Operating Segment.
  5. Write a note on the management on foreign exchange risk.
  6. Goodwill arising on the acquisition of a foreign operation and fair value adjustments are treated as assets / liabilities of the foreign operation and are expressed in the functional currency of the foreign operation-Discuss.

 

Section-C

III. Answer any THREE of the following questions:                           (3X15=45)

 

  1. Briefly explain the ten environmental factors affecting the international accounting.

 

  1. What do you mean by harmonisaton? How can harmonisaton be measured? And also explain the pressure from different parties to incorporate harmonisaton in financial reporting.

 

 

 

 

 

 

 

  1. Briefly explain the Financial Reporting in any of the following two countries (Each carrying 7.5 Marks)
  2. a) US
  3. b) Germany
  4. c) France
  5. d) Australia

 

  1. All entities that have a different functional currency from the group presentation currency must translate their financial information into the group presentation currency-discuss from inflationary and hyperinflationary economy angle.

 

  1. Differentiate between:
    1. segment assets and segment liabilities
    2. segment revenue and segment expenses
    3. Business segment and geographical segment.

 

Section-D

 

  1. Answer the following question: (1X15=15)

 

  1. Aaron Duley, the CEO of Nickel Corporation, was discussing with his CFO, Michael Cucciare, whether the company should adopt international accounting standards for financial reporting purposes. Nickel Corporation is based in a country that permits the use of either international accounting standards or domestic GAAP.

“Michael, reporting under our domestic GAAP is much more costly to the company than reporting under International accounting standards. I understand that fewer disclosures are required under international accounting standards. Moreover, international accounting standards provide more choices when it comes to applying accounting methods to our financial statements to produce the most favorable results. And, to be honest with you, the company is going to have to report under our current domestic GAAP. I certainly don’t want that to happen while I’m CEO.”

“I hear you, Aaron, but converting to international accounting standards might look bad to investors. What if the public finds out that we were trying to hide the operating loss or switched to international accounting standards to manipulate the Bottom line? That could prove even more costly in the long run, while saving the company pennies now.”

 

 

 

 

 

 

  1. Referring to the conversation above, should Nickel Corporation prepare this year’s financial statements in accordance with its domestic GAAP, or use international accounting standards? Justify your recommendations and address any concerns.

 

  1. Assume you are the CFO of Nickel Corporation. How would you reply to the CEO’s suggestion? Summarize your response including why you opted for or against the adoption of international accounting standards.

 

 

  1. In your opinion, is there anything ethically wrong with the CEO’s rationale fro the adoption if international accounting standards? Explain.

 

  1. As Nickel Corporation’s auditor, would you agree to the switch to international accounting standards?

 

 

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St. Joseph’s College of Commerce M.Com. 2011 II Sem Strategic Human Resource Management Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester APRIL -2011

M.Com. –II Semester  

Strategic Human Resource Management

Duration: 3 Hours.                                                                                                         Max Marks: 100

Section – A

  1. Answer ALL Questions. Each question carries 2 marks. (10 x 2 = 20)
  2. What are the strategic human resource challenges?
  3. Explain the concept of human capital with help of a suitable example.
  4. Why is job analysis considered as a valuable source of information for HRP?
  5. Write briefly on the techniques of selection.
  6. What are the objectives of career planning?
  7. What are the effects of alcoholism and substance abuse on employees?
  8. What are the different criteria of measuring performance?
  9. Write a note on ESOPs?
  10. Explain the term sensitivity training?
  11. What is meant by e-Recruitment?

Section – B

  1. Answer any FOUR. Each question carries FIVE marks.       (4X5=20)           

 

  1. Explain briefly the importance of a strategy oriented HR Management system.
  2. What is job description? Discuss its purpose.
  3. Write a note on strategic issues in Recruitment.
  4. What are the problems involved in career planning?
  5. What are fringe benefits. Write a note on the reasons and concerns for implementing fringe

benefits.

  1. Write a note on violence at work place. Suggest measures to avoid

violence.

Section – C

III. Answer any THREE. Each question carries 15 marks              (3X15=45)                                                                                                           

  1. Explain the concept and features of HR planning? What is the need for integrating HR planning with overall strategic planning? What are the difficulties that arise during implementation of HR plan?
  2. Suppose you are the HR manager of a big enterprise and some senior position vacancies arise. It is proposed to fill these positions internally. Do you agree with the proposal; why or why not? State the merits and demerits of internal as well as external sources of recruitment.
  3. Discuss ethics in HR management. Write on the importance of ethics in the work place and factors shaping ethical behaviour at work.

 

  1. What are the causes and forms of industrial disputes? What are the methods of prevention and settling industrial disputes?
  2. What are the Occupational hazards and risks? Explain the protective measures proposed against health hazards? What are the statutory provisions to be adopted to avert the ill effects of health hazards?

Section – D

  1. Compulsory Case Study                 (1 x 15 = 15)
  2. The New Pay Plan

Carter cleaning Centers does not have a formal wage structure nor does it have rate ranges or use compensable factors. Wage rates are based mostly on those prevailing in the surrounding community and are tempered with an attempt on the part of Jack Carter to maintain some semblance of equity between what workers with different responsibilities in the stores are paid.

Needless to say, Carter does not make any formal surveys when determining what his company should pay. He pursues the want ads almost everyday  and conducts informal surveys among his friends  in the local  chapter of the laundry  and cleaners trade association. While Jack has taken a “seat-of-the-pants” approach to paying employees, his salary schedule has been guided by several basic pay policies. While many of his colleagues adhere to a policy of paying absolutely minimum rates, Jack has always followed a policy of paying his employees about !0% above what he feels are the prevailing rates, a policy that he believes reduce turnover while fostering employee loyalty. Of somewhat more concern to Jennifer is her father’s informal policy of paying men about 20% more than women for the same job. Her father’s explanation is, “They’re stronger and can work harder for longer hours, and besides they all have families to support”.

Questions:

  1. Is the company at the point where it should be setting up a formal salary structure based on a complete job evaluation? Why?
  2. Is Jack Carters policy of paying 10% more than the prevailing rates a sound one, and how could that be determined?
  3. Similarly, is Carters male-female differential, wise and if not, why not?
  4. Specifically what would you suggest Jennifer do now with respect to her company’s pay plan?

 

St. Joseph’s College of Commerce M.Com. 2011 II Sem Securities Analysis And Portfolio Management Question Paper PDF Download

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St. Joseph’s College of Commerce (Autonomous)

Supplementary Examination- October 2011

MCOM – II Semester

 

SECURITIES ANALYSIS AND PORTFOLIO MANAGEMENT

Duration:  3 Hours                                                                                         Max. Marks: 100

Section A

  1. Answer ALL the questions in one or two sentences                              (10×2=20)
  2. Satish invests Rs.10,000/- today. The rate of interest is 8% compounded annually. What will be the value of his investment after 5 years?
  3. What is downward trend line?
  4. What does a candlestick chart represent?
  5. Fundamental analysis is commonly known by another name. What is it?
  6. Investment in gilt edges securities carry a high element of risk. Is the statement true?
  7. What is speculation?
  8. What is unsystematic risk?
  9. What is a futures contract?
  10. What is a fund of fund?
  11. Which MF in India launched the Gilt plan and in which year?

Section B

  1. Answer any FOUR questions (4×5=20)
  1. Mr. Patel buys 1050 shares of Grasim in July 2001 for INR 250 and sells it for INR 480 in April 2002. What kind of an investor is he? What are the various styles of investing?
  2. What are the assumptions of CAPM?
  3. Briefly explain the E-I-C framework of Fundamental Analysis.
  1. Akash is an Investment consultant with rich experience in equity research and portfolio management. He was requested by a client to give a presentation on equity valuation. You as an executive assistant prepare for him the following:

 

  • The equity stock is currently selling for INR 30 per share. The dividend expected next year is INR 2.00. The investor’s required rate of return on this stock is 15%. If the constant growth model applies, what is the expected growth rate?

 

  • The current dividend on an equity share is INR 5.00. The present growth rate is 50%. However this will decline linearly over a period of 8 years and then stabilize at 10%. What is the intrinsic value per share if the investors require a return of 18% from its stock?

 

  1. (a) ABC Co. has a Days Sales Outstanding ratio of 60 days. Total credit sales for the year were $2,400,000. What is the balance in accounts receivable?

 

( b) If a firm has interest expenses of $10,000 per year, sales of $700,000, a tax rate of 40%, and a net profit margin of 7%, what is the firm’s times interest coverage ratio?

 

  1. Explain the relationship between coupon rate, required yield and price of a bond.

 

Section C

  • Answer any THREE of the following      (3×15 = 45)
  1. Write a note on industry analysis and on the study of the structure and characteristics of an industry.
  2. The returns on the equity stock of Auto Electricals Limited and the market portfolio over a 11 year period are given below:
Year Return on

Auto Electricals Ltd. (%)

 Return on

Market Portfolio (%)
1 15 9
2 16 12
3 10 6
4 -15 4
5 -5 16
6 14 11
7 10 10
8 15 12
9 12 9
10 -4 8
11 -2 12

Calculate the beta for the stock of Auto Electricals Limited.

  1. (a) Assume Rs. 1000 is invested each month for 6 months in the units of a certain SIP. The next table shows the declining prices of the units of the scheme from January through June.

 

 

Date of Investment Monthly Investment       Price        Units
1st Jan 1000 32 31
1st Feb 1000 22 45
1st Mar 1000 22 45
1st Apr 1000 18 56
1st May 1000 16 63
1st Jun 1000 11 91

Explain how the concept of RCA helps an investor?

  • How are options traded and settled in the Indian stock exchanges?

(8+7)

  1. (a) Give a brief explanation of the different types of equity valuation models.
  • Consider the following information of three mutual funds A,B and C and the market.
  Mean Return Standard Deviation (%) Beta
A 12 18 1.1
B 10 15 0.9
C 13 20 1.2
Market Index 11 17 1.0

The mean risk free rate was 6%. Calculate the Treynor measure and Sharpe measure to evaluate the MF performance.

(8+7)

  1. (a) In deciding whether to use forward, futures, or options contracts for hedging, what are the points which a firm should consider?
  • What are the various methods of classification of Mutual Funds on the basis of investment objective?

(8+7)

 

Section D

  1. Case study – Compulsory Question.                                 (15 marks)

CASE STUDY

  • Technical analysts believe that certain formations or patterns observed on the bar chart or line chart have a predictive value. Explain how the following patterns help such an analyst to predict stock behavior and summarize the importance of technical analysis.

 

 

 

 

 

 

 

 

 

 

St. Joseph’s College of Commerce M.Com. 2011 II Sem Operation Research For Business Decesions Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (Autonomous)

End Semester Examination – APRIL 2011

M.COM – II SMester

OPERATION RESEARCH FOR BUSINESS DECESIONS

 

Duration: 3 Hours                                                                                        Max. Marks:100

SECTION – A

I)Answer ALL the questions.                                                                                    (10×2=20)

  1. How do the graphical and simplex methods of LP differ? How are these same?

 

  1. What is simulation?

 

  1. How do you determine that there are multiple alternative solutions to an assignment problem? How do you find the alternative solutions?

 

  1. For the following equation -2x + y< 1, show the feasible region with the help of a diagram.

 

  1. Define the term operation research. Mention any two characteristics of operation research.

 

  1. How can degeneracy be resolved at the initial solution and at the any iteration?

 

  1. What do you understand by the term feasible solution?

 

  1. Explain the term jockeying.

 

  1. Explain the term artificial variable.

 

  1. Differentiate between Static and Dynamic Models.

 

SECTION – B

  1. II) Answer any FOUR questions (4×5=20)

 

  1. The simplex tableau for a maximisation problem of linear programming is given here
Product mix Cj Basic variables X1 X2 S1 S2 Quantity
5 X2 1 1 1 0 10
0 S2 1 0 -1 1 3
Cj   4 5 0 0  
Zj   5 5 5 0 50
Cj-Zj   -1 0 -5 0  
             

Answer the following and give reasons in brief-

  • Is the solution optimal?
  • Are there more than one optimal solution?
  • Is the solution feasible?
  • How many units of the two products X1 and X2 are being produced according to this solution and what is the total profit?

 

  1. A student has to select one and only one elective in each semester and the same elective should not be selected in the different semesters. Due to various reasons the expected grades in each subject, if selected in different semesters vary and they are given below

Semester            Analysis               Statistics              Graph theory     Algebra

I                               F                              E                              D                             C

II                             E                              E                              C                             C

III                            C                             D                             C                             A

IV                            B                             A                             H                             H

The grade points are : H:10,  A=9, B=8, C=7, D=6, E=5, F=4. How will the students elect the electives in order to maximise the total expected points and what will be his maximum expected total points.

 

  1. What is dynamic programming? What are the essential characteristics of a dynamic programming problem?

 

  1. Let us assume that you have inherited Rs 1, 00,000 from your uncle that can be invested in a combination of only two stock portfolios, with the maximum investment allowed in either portfolio set at Rs 75,000. The first portfolio has an average rate of return of 10%, whereas the second has 20%. In terms of risk factors associated with these portfolios, the first has a risk rating of 4(on a scale from 0 to 10) and the second has 9. Since you wish to maximise your returns, you will not accept an average rate of return below 12% or a risk factor above 6(both taken together). Hence you then face an important question. How much should you invest in each portfolio? Formulate this as a linear programming problem and solve it by graphic method.

 

  1. A) Differentiate between seasonal and cyclical trends.

 

  1. b) Use the method of least squares to fit a trend line for the income from the following data. Estimate the income for the year 2003.

Year                       1995       1996       1997       1998       1999       2000       2001       2002

Income                 85           90           110         100         95           120         125         115

 

  1. Find the initial basic feasible solution to the following transportation problem using VAM given the cost matrix.

D1           D2           D3           D4           SS

S1           20           25           28           31           200

S2           32           28           32           41           180

S3           18           35           24           32           110

DD          150         40           180         170

 

SECTION – C

III) Answer any THREE questions.                                                                                (3×15=45)

 

  1. The manager of a book store has to decide the number of copies of a particular tax law book to order. A book costs Rs 60 and is sold for Rs 80. Since some of the tax laws change year after year, any copies unsold while the edition is current must be sold for Rs 30. From past records, the distribution for this book has been obtained as follows:
Demand No of copies 15 16 17 18 19 20 21 22
Proportion 0.05 0.08 0.20 0.45 0.10 0.07 0.03 0.02

 

Using the following sequence of random numbers, generate data on demand for 10 time period (years). Calculate the average profit obtainable under each of the courses of action to the manager. If producer for production of a) 15 books b) 20 books c) 18 books. What is the optimal policy?

14 02 93 99 18 71 37 30 12 10
88 12 00 57 69 32 18 08 92 72

 

  1. A self-service store employs one cashier at its counter. 9 customers arrive on an average every 5 minutes while the cashier can serve 10 customers in 5 minutes. Assuming Poisson distribution for arrival rate and exponential distribution for service rate. Find –
  2. Average number of customers in the system
  3. Average number of customers in the queue
  4. Average time a customer spends in the system
  5. Average time a customer waits before being served.

 

  1. The following table shows all the necessary information on the availability of supply to each warehouse, the requirement of each market and unit transportation cost (in Rs) from each warehouse to each market

market

 

 

warehouse

   P Q R S Supply
A 6 3 5 4 22
B 5 9 2 7 15
C 5 7 8 6 8
Demand 7 12 17 9 45

The shipping clerk has worked out the following schedule from experience: 12 units from A to Q, 1 unit from A to R, 9 units from A to S, 15 units from B to R, 7 units from C to P, and 1 unit from C to R.

  1. Check and see if the clerk has the optimal schedule.
  2. Find the optimal schedule and minimum total transport cost.
  3. If the clerk is approached by a carrier of route C to Q who offers to reduce his rate in the hope of getting business, by how much the rate should be reduced before the clerk will offer him the business.

 

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

 

  1. “Executives at all the levels in business and industry come across the problem of making decisions at every stage in their day to day activities. Operation research provides them with various quantitative techniques for decision making and enhances their ability to make long range plans and solve everyday problems of running a business and industry with greater efficiency, competence and confidence. “Elaborate the statement with examples.

 

SECTION – D

  1. IV) Compulsory question          (1×15=15)

 

  1. As the Captain of the Indian Cricket team you have to allot five middle batting positions to five batsmen. The average runs scored by each batsman at these positions are as follows:
 BATSMEN                                                      BATTING POSITIONS
 

 

 I II III IV V
Sachin 40 40 35 25 50
Dhoni 42 30 16 25 27
Gambhir 50 48 40 60 50
Sehwag 20 19 20 18 25
Yuvraj 58 60 59 55 53

 

  • Find the assignment of batsman to positions which would give the maximum number of runs.

 

  • If another batsman Zaheer with the following average runs in the batting positions are given below:
Batting positions I II III IV V
Average runs 45 52 38 50 49

 

Is added to the team, should be included to play in the team, if so who should be replaced by whom?

 

 

 

St. Joseph’s College of Commerce M.Com. 2011 II Sem Marketing Strategies And Planning Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION –APRIL 2011

M.COM –  II SEMESTER

MARKETING STRATEGIES AND PLANNING

 

Time: 3 Hrs                                                                                                   Max. Marks: 100

SECTION –A

  1. Answer ALL the questions.                                                                      (10×2=20)

             

  1. Define Industrial marketing.
  2. What is Industrial Products?
  3. Define Market Segmentation.
  4. What is E- Commerce?
  5. What do you understand by consumer behavior?
  6. What is Channel distribution?
  7. Define the concept of customer relationship management.
  8. Give two examples for Sources of Primary data.
  9. What is Customer Service?
  10. Define Supply Chain Management.

 

SECTION – B

  1. Answer any FOUR Each carries 5 marks.                            (4×5=20)
  2. Differentiate between Industrial Marketing and Consumer Marketing.
  3. State the scope of Industrial Marketing Research.
  4. Discuss the main pricing methods of the manufacturer.
  5. Explain the various factors influencing channel choice.
  6. Discuss the process of Product Life Cycle.
  7. Explain disadvantages of e–commerce.

 

 

 

 

             

Section – C

 

III)Answer any THREE questions.  Each carries 15 marks.                        (3×15=45)

 

  1. Define product development. Explain the stages involved in the process of

developing new products.

  1. Discuss the various dynamics of physical Distribution.
  2. Explain the various types of Marketing.
  3. Critically analyze the process of marketing research.
  4. What is Corporate Strategic? Discuss its various components and significance.

 

 

 

Section – D

 

 

  1. iv) Case Study – Compulsory question. ( 1×15=45)

 

22)  “Consumer protection is so essential in today’s India” Elucidate with some recent case and example.

 

 

                                  &&&&&&&&&&&&&&&&&&&&&&&&&

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANSWER KEYS

Class: M.I.B                                                  Semester: IV

 

Subject: ORGANISATIONAL BEHAVIOUR

 

SECTION – A (Answers – One or Two sentences)                                            10 ×2 =20

 

1) Organizational behavior (OB) is a term related to the study of the individuals and group dynamics in an organizational! Setting, including the nature of the organizations themselves.

 

2) Relatively permanent change in behavior which occurs as a result of experience or practice.

 

3) Change management can be defined as the effective management of a business change such that organizational leaders, managers and employees work in concert to successfully implement the needed technology or organizational changes.

 

4) Satisfying employees’ need is a prime responsibility of all organizations Reward is given to individual employee and also to organization as a whole. An employee can be rewarded on the basis of performance, speed and efficiency, loyalty and innovation.

 

5) Maslow Hierarchy of needs theory, Herzberg two factor theory, Theory Z

6) Communication means an exchange of facts, ideas, opinions, information or emotions by two or more persons.

  1. Group Dynamics is a process by which people interact face to face in small groups.

8) Leadership is process of influencing others towards the accomplishment of goals. It’s the ability of a manager to induce subordinates to work with confidence and zeal.

9)  Perception is process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world.

10) Motivation is a factor which encourages persons to give their best performance and help in reaching enterprise goals.

SECTION –B                                                                                                                        4 ×5 =20

Answer Any FOUR questions.

 

11) Importance of studying organsational behavior

Understanding of self and others

Motivation to human resources

Good Human Relations

Effective Communication

Effective Organizational Climate.

12) Team building

Team as groups of two or more people who interact and influence each other, are mutually accountable for achieving common objectives, and perceive themselves as a social entity within an organization.

 

Team building refers to shaping of the team for smooth functioning. Steven and Mary Ann Von have defined team building as any formal intervention directed toward improving the development and functioning of a work team. Thus, the process of team building aims at enhancing the effectiveness of a team.

 

Strategies and functions

  • Projection into Future
  • Linkage with Individual Goals
  • Force Field Analysis
  • Strengthening Positive Forces
  • Reducing Negative Forces
  • Monitoring

 

13) Perception Barriers

  • Stereotyping
  • Halo Effect
  • Similar-to-me Effect or Projection
  • Selective Perceptions
  • Distortion
  • Contrast Effects

 

14) Maslow hierarchy model of motivation theory

  • Physiological Needs
  • Safety needs
  • Social Needs
  • Esteem Needs
  • Self Actualization Needs

15) Attitudes various Functions

According to Baron, Attitude is defined as, lasting evaluations of people, groups, objects, or issues- in fact, of virtually any aspect of the social or physical world.

  • Adjustment Function: People tend to develop favorable attitude towards rewarding and beneficial functions as well as relationship. Similarly people develop negative attitude towards such functions and relationships, which shall attract punitive actions.
  • Ego-defensive Function: Attitude can serve as devise for protecting self-image.
  • Value-expressive Function: Attitude supports expression of core values.
  • Knowledge Function: Attitude serves as standard or frame for understanding and interpreting people and events around them.

 

16) Conflict Management

Conflict is not confined at the individual level alone but is manifesting itself more and more in organizations. Employees have become more vociferous in their demands for a better deal. Various departments in an organization face a situation full of conflicts due to a number of reasons like goal diversity, scarcity of resources or task interdependence etc.

  • Potential Antagonism

·        Cognition and Personalization

·        Conflictive and Conflict handling Behavior

  • Aftermath

 

 

SECTION –C (Essay Type)                                                                                               3 ×15 =45

Answer Any THREE questions

 

17) Mechanisms of Organizational Learning

  • Experimentation and flexibility
  • Mutually and team work
  • Contingency and incremental planning
  • Use of temporary system
  • Competency building

 

18) Change management approaches and implementation

Change management can be defined as the effective management of a business change such that organizational leaders, managers and employees work in concert to successfully implement the needed technology or organizational changes

 

Change management could be -Organizational or individual.

 

Approaches

 

Psychology of the Individual Change Approaches:

  • Social Psychological Change Approaches:
  • Cultural Change Approaches
  • Innovation approaches
  • Global Change approaches
  • Practitioner Approaches to Change

 

Implementation

  • Analyze the organization and its need for change
  • Create a shared vision and common direction
  • Develop a non-threatening and preferably participative implementation
  • Process
  • Create a sense of urgency
  • Support a strong leader role
  • Line up political sponsorship
  • Craft an implementation plan
  • Develop enabling structures
  • Communicate with and involve people and be honest
  • Reinforce and institutionalize change

 

19) Perception

Individuals are exposed to varieties of stimuli of the environment. They process these stimuli and interpret them. The process of receiving information and making sense is known as perception. It refers to the way the world sounds, looks, feels, smells, tastes to the individual.

 

Various processes

  • Stage 1: Perceptual Inputs of Stimuli-
  • Information, Objects, Events, People etc.
  • Stage 2: Perceptual Mechanisms-
  • Selection, Organization, Interpretation
  • Stage 3: Perceptual outputs-
  • Attitudes, Opinions, Feelings, Values
  • Stage 4: Pattern of Behavior

 

20) Herzberg’s two factor theory.

Frederick Herzberg is another distinguished American psychologist who has questioned the conventional wisdom of managerial dogma and practices. He has studied the problem of human motivation at the work place. “The central core of Herzberg’s work stems from his Second World War experiences where he realized.

“The insane also require care and compassion but their insane actions should never be reinforced by ethically neutral strategies.

Frederick Herzberg’s major works are:

  • Work and the Nature of Man
  • The Motivation to Work
  • The Managerial Choice: To be Efficient and to be Human

 

Determinants of job satisfaction: strong determinants of job satisfaction are: achievement; recognition; the attraction of the work itself; responsibility; and advancement. Company policy and administration; supervision; salary; interpersonal relations; and working conditions

Three propositions are at the heart of motivator-hygiene theory:

Job satisfaction and job dissatisfaction are not the opposite of one another

Factors that led to job satisfaction are of a different kind from those that led to job dissatisfaction.

The motivators concerned with sustaining job satisfaction have a much long-lasting effect than the hygiene factors concerned with removing dissatisfaction.

Job enrichment

Rationalizing the work to increase efficiency, Herzberg suggests that including the motivating factors, which provide the opportunity for the employee’s psychological growth, enrich jobs. In attempting to enrich an employee’s job, Herzberg suggests that management should give him an opportunity for growth in his existing job.

21) Leadership

Leadership may be defined as a process of influencing group activities towards the achievement of certain goals. Thus, the leader is a person in a group who is capable of influencing the group to work willingly. He guides and directs other people and provides purpose and direction to their efforts. The leader is a part of the group that he leads, but he is distinct from the rest of the group.

 

According to George R.Terry “Leadership is the activity of influencing people to strive willingly for group objectives”. Leadership naturally implies the existence of a leader and followers as well as their mutual interaction. It involves interpersonal relation, which sustains the followers accepting the leader’s guidance for accomplishment of specified goals.

 

Leadership Styles

 

The dominant behavior pattern of a leader-manager in relation to his subordinates is known as leadership style. There are three basic styles of leadership as follows:

 

1) Autocratic or Authoritative Style

2) Democratic or Participative Style, and

3) Laissez-faire or Free-rein Style

Section – D Case Study                                                                  1×15 =15

 

22) Consider: Concept and Relevance of the study

 

ANSWER KEYS

 

Class: M.Com                                                          Semester: II

 

Subject: MARKETING STRATEGIES AND PLANNING

 

SECTION – A (Answers – One or Two sentences)                                            10 ×2 =20

 

  1. Transactions between various types of industrial / business houses. It’s also called as B2B Marketing. Market must react to the latest Advancement.
  2. Products / materials those are useful to produce the finished goods. It consist of Raw materials like Manufacturing parts, Capital Items- Installation, Equipment etc.,
  3. The division of a market into groups of segments having similar wants. Segments may differ also in their needs for information, reassurance, technical support, service, promotion, distribution etc,
  4. Process of buying and selling goods and services through the electronic gadgets like Internet, Extranet.
  5. The decision process and physical activity engaged in when evaluating, acquiring, using or disposing of goods and services.
  6. Network of institutions involved in the distribution of goods and services from producers to consumers.
  7. Customer Relationship Management to all marketing activities directed towards establishing, developing, and maintaining successful relationship with their customers.

 

  1. Examples for Sources of Primary data – Questionnaire, Interview Schedule
  2. Provision of service to the consumer before and after purchase of goods and services.
  3. Supply Chain Management is an integrated management process within the organization and outside the organization.

SECTION –B                                                                                                            4 ×5 =20

Answer Any FOUR questions.

  1. On the basis of the following elements the two markets has been differentiates namely
  • Buyers
  • characteristics
  • Structure
  • Decision Making
  • Channels
  • Production Presentation
  • Price
  • Service etc..,

 

  1. Scope of Industrial Marketing Research

The following are the major scope for the Industrial Marketing Research

  • Hierarchy – Managers Responsibilities
  • Effective performance – Workforce
  • Identify Market understanding and development
  • Projection of potential Market
  • Sales Potential – Estimation
  • Market Budgeting
  • Appropriate Market Positing
  1. Pricing policies

 

Price is an important element of the marketing mix. It can be used as a strategic marketing variable to meet competition. It is also a direct source of revenue for the firm. It must not only cover the costs but leave some margin to generate profit for the firm. of the manufacturer.

  • Cost-plus or Full-cost pricing
  • Pricing for a rate of return, also called target pricing Marginal cost pricing
  • Going rate pricing, and
  • Customary prices.

The first three methods are cost-oriented as the prices are determined on the basis of costs. The last two methods are competition-oriented as the prices here are set on the basis of what competitors are charging.

Cost-plus or Full-cost Pricing

This is most common method used in pricing. Under this method, the price is set to cover costs (materials, labor and overhead) and a predetermined percentage for profit. The percentage differs strikingly among industries, among members-firms and even among products of the same firm. This may reflect differences in competitive intensity, differences in cost base and differences in the rate of turnover and risk.

Pricing for a Rate of Return

An important problem that a firm might have to face is one of adjusting the prices to changes in costs. For this purpose the popular policies that are often followed are as under:

  1. Revise prices to maintain a constant percentage mark-up over costs.
  2. Revise prices to maintain profits as a constant percentage of total sales.
  3. Revise prices to maintain a constant return on invested capital.

 

Marginal Cost Pricing: Both under full-cost pricing and the rate-of-return pricing, prices are based on total costs comprising fixed and variable costs. Under marginal cost pricing, fixed costs are ignored and prices are determined on the basis of marginal cost.

Going-rate pricing

`going-rate pricing’ is not quite the same as accepting a price impersonally set by a near perfect market. Rather it would seem that the firm has some power to set its own price and could be a price maker if it chooses to face all the consequences. It prefers, however, to take the safe course and conform to the policy of others.

Customary Pricing

Prices of certain goods become more or less fixed, not by deliberate action on the sellers’ part but as a result of their having prevailed for a considerable period of time. For such goods, changes in costs are usually reflected in changes in quality or quantity. Only when the costs change significantly the customary prices of these goods are changed.  Customary prices may be maintained even when products are changed.

 

  1. Factors influencing channel choice
  • Distribution Policy
  • Characteristics of product
  • Nature of Consumer
  • Supply Characteristics
  • Potential Sales Volume
  • Middlemen Role

 

  1. Discuss the process of Product Life Cycle

The stages through which a product goes through from the time it is introduced i11 a market till its elimination from the market.

 

  • Introduction
  • Growth
  • Maturity /saturation
  • Decline
  1. E–commerce disadvantages
  • Technical Drawbacks
  • Non- Technical Drawbacks

 

SECTION –C (Essay Type)                                                                                   3×15 =45

Answer Any THREE questions

 

  1. Define product development. Explain the stages involved in the process of developing new products. Product development is by definition a future-oriented practice. It is an effort to foresee the future needs of the market place and to translate this information into state-of-the-art products. Product development is an innovative activity designed to meet the identified needs in the market.

Idea generation process of developing new products.

  • Idea screening
  • Concept development & testing
  • Marketing strategy development
  • Feasibility analysis
  • Product development
  • Market testing
  • Consumer realization of product

 

  1. Dynamics of physical Distribution
  • Customer Service
  • Order Processing
  • Logistics Communication
  • Transportation
  • Warehousing
  • Inventory Control
  • Packaging
  • Material Handling
  • Production Planning
  • Warehouse Locations

 

  1. Various types of Markets.
  • On the Basis of Location
  • On the Basis of Area Covered
  • On the Basis of Time Span
  • On the Basis of Volume of Transactions
  • On the Basis of Nature of Transactions
  • On the Basis of Degree of Competition
  • Classification of the Market on the Basis of Public Intervention

 

  1. Process of marketing research

Marketing research is a systematic collection and analysis of information that is ultimately used in evolving some marketing decisions. All stages of a research study must be carried out in a logical manner.

 

Various Processes

  • Defining the Problem
  • Statement of Research Objectives
  • Planning the Research Design
  • Planning the Sample
  • Data Collection
  • Data Processing and Analysis
  • Formulating Conclusion, Preparing & Presenting the Report

 

  1. Corporate Strategic -A unified, comprehensive and integrated plan that relates the strategic advantage of the firm to the challenges of the environment.

 

Various components

  • Objectives
  • Vector
  • Competitive Advantage
  • Synergy

 

Significance

 

  • Allocation of scarce resources.
  • Corporate strategy motivates employees
  • Strategy assists management to meet unanticipated future changes.
  • Organizational effectiveness
  • Improves the capability of
  • Best course of action to realize the objectives.
  • Objective basis for measuring performance.

 

Section – D Case Study                                                                              1×15 =15

 

22) Consider: Concept and Relevance of the study

 

St. Joseph’s College of Commerce M.Com. 2011 II Sem Business research Methodology Question Paper PDF Download

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St. Joseph’s College of Commerce    (Autonomous)

END SEMESTER EXAMINATION – APRIL 2011

M.Com. – II Semester

Business Research Methodology

 

Time: 3 hrs.                                                                                                       Max. Marks: 100

SECTION – A

 

I)Answer any TEN questions from the  following fifteen:                               (10 x 2 = 20)

 

(Your answers have to be precise, max. four sentences!)

  1. What is the purpose of literature survey? What is meant by ‘Research Gap’?
  2. What is Exploratory Research? How is it different from Pilot Study?
  3. Define: Intervening variable and Moderating Variable with a simple example
  4. What is Likert Scale? Why is it called a Summated Scale?
  5. Explain Stratified Random Sampling.
  6. What is a dichotomous question? How is it different from a polytomous question?
  7. How does a ‘construct’ differ from a ‘concept’?
  8. Judgemental or Purposive Sampling.
  9. Define deontology and relativism in business research.
  10. How is Causal Research different from Ex Post Facto research?
  11. Explain with an example: Variable and Parameter of Interest in a population.
  12. What are ‘Outliers’? How do they affect data interpretation?
  13. What are the two main reasons for Sampling Error?
  14. What is Data Mining? What is its ultimate goal?
  15. Give any two common methods of Projective Techniques.

 

SECTION – B

 

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

 

(Your answers have to be analytical and to the point!)

 

  1. Explain the Management Research Question Hierarchy (MRQH) with an example, in which you play the role of a beleaguered Advertisement Manager of a news paper.
  2. What do you understand by the F-distribution? Give a simple explanation of ANOVA and its use.
  3. Explain with a simple example each and using graphs: Frequency Polygon and Ogive.
  4. What are Secondary Data? What are the methods used in collecting them?

What are their advantages and disadvantages?

  1. What are Multi-variate analytical tools? Name at least two each used for parametric and non-parametric analysis respectively, briefly giving examples.
  2. Are the following Nominal, Ordinal, Interval or Ratio data? Why? Explain your reasoning briefly:
  • Temperature measured on the Kelvin scale

 

(b) Military ranks

(c) Social security numbers

(d) Number of passengers on a flight from Mumbai to Delhi.

(e) Code numbers given to the religion of persons.

 

SECTION – C

 

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

 

(Your answers have to be descriptive and of essay type!)

 

  1. “The interview is a very widely used means of primary data collection and is central

to most Research  Designs” – elaborate! What are the different methods and types        of interviews?

What are the pre-requisites and basic tenets of interviewing?

What are the advantages and disadvantages of interviews in data collection?

What are the issues of subjectivity and objectivity in interviewing?

 

  1. What are “Scales” of measurement in Research Methodology? What are the three main

characteristics of good measurement? Classify and describe the different types of

Scaling techniques, giving an example to explain each one.

What are the three main errors which occur in Scaling?

Construct a “Stapel Scale” for the rating of Infosys as a global leader for any three

attributes.

 

  1. Explain in detail “Regression Analysis” and “Correlation” with an example each.

What are the main differences between Regression analysis and Correlation analysis?

What are Scatter-plots? What is meant by “goodness of fit”?

 

  1. What is research? What are the various steps involved in planning the research

process?

What are the main headings of a good “Research Proposal”? Write a Research Proposal

based on a hypothetical research problem in a business organisation – you can choose

your problem from any area of management.

 

  1. Give at least four valid reasons for using Sampling in research. Explain in detail at

least nine different methods of sampling techniques used under the two broad

headings: Random and Non-random sampling, giving an example for each method.

 

SECTION – D

IV)Answer any ONE question from the following two:                              ( 1 x 15 = 15)

 

(1) What do you understand by the expression: “Probability Sampling Distribution”? Explain by means of the typically used Frequencies vs. Variables Uni-modal Graph.

Explain briefly the terms: Confidence Interval, Central Limit Theorem, One-tailed and Two-tailed Tests and Degrees of Freedom.

What is a Student “t-test”?

Solve the following problem using the “t-test”:

A manufacturer of car batteries claims that the average capacity of a certain type of battery that the firm produces is at least 140 AH (ampere hours) with a standard deviation of 2.66 AH. An independent sample of 20 batteries gave a mean of 138.47 AH. Test at 5% level of significance the null hypothesis that the mean life is 140 AH against an alternative that is lower. Can the manufacturer’s claim be sustained on the basis of the sample?

 

Help:

(i) The t-test Formula can be written as: t = (  x̄  –  μ Ho) / [ s /sqrt (n) ]

(ii)From the Distribution Table: Given α = 0.005,  for 19 D.F. the Critical Value of  t = +/- 1.729

OR

 

(2) What is meant by Hypothesis Testing? Explain with a simple example: Null Hypothesis and Alternative         Hypothesis. Briefly explain: (a) Level of Significance, (b) Decision Rule, and (c) Type I & Type II Errors.

 

What are Non-Parametric Tests of Significance? Explain Chi Square (c²) Test with a simple example. What are the steps in using the Chi Square (c²) Test in Hypothesis Testing?

 

Solve the following problem using the “c² – test”:

“The frequency of farms depending mainly upon raagi crops for an income is not related to underlying soil type.”

 

(A) State Ho and H1.

(B) Draw the necessary tables and work out the problem systematically

 

Data:

Area    Soil Type                   Number of raagi Farms

 

I           Marl                2

II          Chalk              10

III        Sandstone      8

IV        Clay                2

V         Limestone     4

 

Help:

(i)  The c² Formula can be written as: c² = Sigma (O –E) ² / E

(ii) The Table of Critical Values for c² shows that with D.F. = 4, the Critical Value of c²  is 9.49 at α = 0. 05

 

 

 

St. Joseph’s College of Commerce M.Com. 2011 II Sem Advanced Management Accounting Question Paper PDF Download

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St. Joseph’s College of Commerce (Autonomous)

End Semester Examination – April 2011

M.Com – II semester

Advanced Management Accounting

Time : 3 hrs                                                                                                    Max. Marks: 100

Section – A

I)Answer ALL the following questions.                                                           (10×2 = 20)

 

  1. What is capital rationing?
  2. What are the uses of benchmarking? In what areas is it applicable?
  3. What is marginal costing?
  4. What is essence of beta in CAPM model.
  5. What is present value annuity factor?
  6. What are the steps towards implementing an activity based costing system?
  7. What are applications of marginal costing?
  8. Write the meaning of synergy.
  9. What are the four perspectives of balance score card?
  10. What are the various pricing strategies?

 

Section – B

II)Answer any FOUR out of SIX questions.                                         (4 x 5 = 20)

 

  1. What is a arms length principle? Explain the methods of transfer pricing.

 

  1. What is performance measurement? What are the various techniques of measuring financial performance?  Explain any two.

 

  1. A company has prepared the following budget of sales:
Product Sales PV ratio(%)
A

B

C

 6,00,000

9,00,000

10,00,000

 40

30

25

 

You are required to revise the sales mix to ensure a profit of Rs. 10,000 in such a way that not more than Rs. 8,00,000 of sales of product A is possible and that the present total value  of sales should not be altered.

 

  1. A company engaged in plantation activities has 200 hectares of virgin land which can be used for growing jointly or individually tea, coffee and cardamom. The yield per hectare of the different crops and their selling price per kg are as under:
  yield Selling price per kg
Tea

Coffee

cardomom

 2,000 kg

500

100

 Rs. 20

40

250

The relevant cost data are given below

Variable cost per kg

  Tea (Rs.) coffee(Rs.) Cardamom(Rs.)
Labour charges

Packing materials

Other costs

 8

2

4

 10

2

1

 120

10

20

 

Fixed costs per annum

Cultivation and growing cost Rs. 10,00,000

Administration cost Rs. 2,00,000

Land revenue Rs. 50,000

Repair and maintenance Rs. 2,50,000

Other costs Rs. 3,00,000

The policy of the company is to produce and sell all the three kinds of products and the maximum and minimum area to be cultivated per product is as follows:

  maximum Minimum
Tea

Coffee

cardomom

 160 hectares

50

30

 120 hectares

30

10

Calculate the most profitable product mix and the maximum profit which can be achieved.

 

  1. Fill in the blanks for each of the following independent situations
  A B C
Selling price per unit

Variable cost as % of selling price

No. of units sold

Marginal contribution

Fixed costs

Profit/loss

 ?

60

 

10,000

20,000

12,000

?

 Rs. 50

?

 

4,000

80,000

?

20,000

 Rs. 20

75

 

?

?

1,20,000

30,000

 

  1. Explain the concept of marginal costing? Describe the characteristics and limitations of marginal costing?

 

 

Section – C

III) Answer any THREE out of FIVE of the following questions.                 (3 x 15 = 45)

 

  1. Relevant data relating to a company are
Particulars P Q R Total
Production and sales (units)

Raw materials usage in units

Raw material costs

Direct labour hours

Machine hours

Direct labour costs

No. of production runs

No. deliveries

No. of receipts

No. of production orders

 60,000

10

50/-

2.5

2.5

16/-

6

18

60

30

 40,000

10

40/-

4

2

24/-

14

6

140

20

 16,000

22

22/-

2

4

12/-

40

40

880

50

  

 

24,76,000

3,42,000

2,94,000

 

60

64

1080

1000

Over heads

  • Set up Rs. 60,000
  • Machines- Rs. 15,20,000
  • Receiving – Rs. 8,70,000
  • Packing Rs. 5,00,000
  • Engineering Rs. 7,46,000

The company operates a JIT inventory policy and receives each component once per production run.

Required:

  • Compute the product cost based on direct labour hour recovery rate of overheads
  • Compute the product costs using activity based costing

 

  1. What is business process re engineering? Explain its methodology.
  2. Explain the concept of balance scorecard and its applications.

 

  1. Mars are manufacturing three products. The cost details are as follows:
Particulars Product A  Rs. Product B Product C
Direct materials

Direct labour

Direct expenses

Selling price

No. of units sold

Total contribution

Less : fixed costs

Profit

 4 units 12

5

8

35

20000

2,00,000

 

 5 units 15

6

9

40

40000

4,00,000

 6 units 18

6

11

50

20,000

3,00,000

7,50,000

1,50,000

 

The direct materials were all imported.  Due to foreign exchange restrictions, henceforth the company can import only 3,00,000 units of raw materials.  The company can produce in all 1,00,000 units maximum.  However they can market only 20,000 units of product A and C each.  There is a local substitute material which is available at a price of Rs.3.75 per unit.  Besides, the company has to spend Rs. 50,000 on intermediaries and consumables, if local substitute material is used in the production process.  There was also a third party who was willing to take a part of the plant on lease up to 50,000 units capacity of B and willing to pay lease charges of Rs. 2,75,000.

You are required to advise the management

  • What should be the quantum of production/sales mix of products with existing import restrictions
  • Whether the company can optimize production of 1,00,000 units with local substitute materials
  • Whether the company can enhance profits by leasing out a part of the plant to the third party and restricting its own production?

 

  1. S ltd has Rs. 10,00,000 allocated for capital budgeting purpose. The following proposal and associated profitability indexes have been determined.
Project Amount Rs. Profitability index
1

2

3

4

5

6

 3,00,000

1,50,000

3,50,000

4,50,000

2,00,000

4,00,000

 1.22

0.95

1.20

1.18

1.20

1.05

Which of the above investment should be undertaken?  Assume that projects are indivisible and there is not alternative use of the money allocated for capital budgeting.

 

  1. As an investment manager you are given the following information
  Initial price Rs. Dividends Rs. Market price at the year endRs. Beta
Investment in equity shares of

Cement ltd

Steel ltd

Liquor ltd

Government of India bonds

  

 

25

35

45

1000

  

 

2

2

2

140

  

 

50

60

135

1005

  

 

0.8

0.7

0.5

0.99

Risk free return may be taken at 14%

You are requested to calculate

  • Expected rate of returns of the portfolio in each using CAPM
  • Average return of the portfolio.

 

Section – D

 

  1. IV) Answer the following question. (15 marks)

                                                                       

  1. Lacquer Painters undertake painting jobs of cars, scooters,, buses etc. the pain materials of desired shades are purchased from market and then painted by spray gun in paint shop by skilled painters. The budget for next year is given below:
  Rs.
Paint materials 100 kilo litres

Direct labour 25000 hours

Total variable costs

Fixed overheads

Total expected costs

Profit 25%

Expected job work revenue

 15,00,000

5,00,000

10,00,000

20,00,000

50,00,000

12,50,000

62,50,000

The firm always faced problems in getting paint materials from markets as the customer needs only a particular shade .  the skilled labour is also sometimes not available due to rush of jobs.

A customer wants to get his moped painted urgently.  It is estimated that one litre  paint is sufficient for painting the moped.  Four labour hours will be required to complete the job.

Required

  • What should be the painting charges if fixed costs are absorbed on the basis of variable costs and profit at 25% on total costs
  • What should be the charges in case the paint material is a limiting factor
  • What should be the charges in case the skilled labour is a limiting factor
  • Which price out of above three would you recommend to the customer and why
  • Would your answer to (4) above differ if the customer has no urgency?

 

 

 

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