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Total No. of Questions : 5] SEAT No. :

P2378 [4670]-302
[Total No. of Pages : 2

M.B.A. - II
302 : Enterprise Performance Management
(2013 Pattern) (Semester - III) (CBCS)
Time : 2½ Hours] [Max. Marks : 50
Instructions to the candidates:
1) All questions are compulsory.
2) Draw Diagrams wherever necessary.
3) Each question carry 10 marks.
4) Use of non-programmable calculator is allowed.

Q1) a) “A profit centre facilitates the true evaluation of performance of a

responsibility centre both in terms of efficiency & effectiveness”,
Elaborate the use, advantages & disadvantages of profit centre.
OR
b) XYZ Ltd. having two separate divisions and have a unique transfer pricing
policy between them.
The following information is available for both the divisions. [i.e. supplying
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division & Receiving Division].

Particulars Supplying Division Receiving Division

[in Rs.] [in Rs.]
Variable cost 18 per unit 15 per unit
Processing cost 14 per unit 12 per unit

Selling price
[Open Market] 40 per unit 75 per unit

Currently transfer price is fixed on the basis of market price.

However Receiving Division gets outside supplier who is ready to supply
the semifinished goods at Rs. 36 p.u. and proposes the ‘supplying
Division’ to revise the transfer price accordingly.
i) Should the Manager of supplying Division accept the proposal if
there is no external market.
ii) What is the impact on profitability of individual departments and
overall company due to the changed scenario.

P.T.O.

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Q2) a) Explain the concept of ‘Capital Budgeting’ highlighting it’s need for the
survival of the organisation. Also state the process of capital Budgeting.
OR
b) ‘State & discuss the various parameters, tools & techniques of Capital
Expenditure Control’.

Q3) a) Measure the performance of a commercial bank on the basis of following

parameters: Customer base, Deposits, Rol, Spread & Credit Appraisal.
OR
b) Discuss the performance of Retail store on the following parameters:
ABC Analysis, Gross Margin Return on Investment.

Q4) a) State & discuss the project control process in detail highlighting schedule
variance & project cost variance.
OR
b) Discuss the performance evaluation parameters for ‘Non-Profit
Organisation’.

Q5) a) Differentiate in detail between the following ‘Financial Audit & Internal
Audit’.
OR
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b) Write Note on the following :
i) Management Audit.
ii) Cost Audit.

E E E

[4670]-302 2

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