Management Control Systems

University Question Papers

A. Management control process/system

1. Explain the various stages of Management Control Process and its features. (2009).
2. Draw a plan of ideal Management Control System in a SERVICES sector. (2008).
3. Explain ideal Management Control in organization and its features. (2006, 2004).
4. Explain different organizational goals. Comment on shareholder wealth maximization.
(2004).
5. Explain various stages of Management process. (2003).
6. Differences and similarities between Strategy Formulation and Task Control. (2008,
2005).
7. Differences and similarities between Management Control and Task Control. (2003).
8. (a) Management Control System in Matrix organization. (2009, 07, 04, 03).
(b) Functioning of standard control system with sketches. (2003).

B. Goal Congruence/Human behavior

9. What is goal congruence? What are the informal factors that influence goal
congruence? (2009,07).
10. Describe and illustrate significance of human behavior patterns in management control.
(2005).
11. Explain the concept of goal congruence (informal and formal. (2002).

C. Responsibility Centres

12. What is Responsibility Centre? List and explain different types of responsibility centres
with sketches.(2009, 06, 02).
13. Explain Responsibility Centre and map the process of evolution thereof from one stage
to another with the help of illustrations and experiences. (2008).

D. Expense Centre

14. Briefly define discretionary Expense Centre, Engineered Expense Centre. Is budget
prepared in Discretionary Expense Centre? How is performance of the manager
evaluated in Discretionary Expense Centre? (2007).
15. Describe differences in budgeting perspective of Engineered and Discretionary expense
Centres. (2003).
 16. For an Engineered (Standard) Expense Centre, Zero based budgets is not necessary.
Comment. (2003).

E. Profit Centre

17. Every SBU is a Profit Centre but every Profit Centre is not SBU. What are the conditions
that should be fulfilled to be converted into Profit Centre? What are the different ways
to measure the performance of Profit Centres? Discuss the merits and demerits. (2009,
07).
18. “Adopting Profit Centre approach may not be appropriate solution always”. Do you
agree? Give reasons ( with illustrations ). (2008).
19. Describe inherent difficulties in creation of Profit Centre may cause and advantages
possible. Under what situations, creation of Profit Centre is NOT advisable? (2005).
20. Advantages of Profit Centre. (2002).
21. What are the different methods to measure profits of a Profit Centre in organizations?
Which different messages each type of measure is likely to convey to managers? (2004).
22. Use of profit centre concept in NPOs. (2003).
23. Pricing Corporate services (see also transfer pricing). (2008, 05, 02).

F. Transfer pricing

24. Transfer pricing is not an Accounting Tool. Comment with examples. (2009,06).
25. Market Price is ideal Transfer Price in limited markets. Comment. (2009, 06, 04).
26. What is two step Transfer Pricing and Profit Sharing approach? Merits and demerits .
(2008, 05, 02).
27. Objectives of Transfer Prices? Under what conditions they induce Goal Congruence?
(2003, 07).
28. What is the ideal Transfer price in (a) in limited market and (b) in shortage of capacity in
industry. (2007).
29. When do you use cost based Transfer Prices? (2007).
30. Pricing of Corporate Services - challenges. (2008, 05, 02).

G. Investment Centres ROI/EVA

31. What are the different methods to evaluate performance of Investment Centres?
Discuss the merits and demerits. Which method would you recommend? (2007).
32. EVA superior to ROI. Analyze and comment with examples/ situations. (2008).
33. Concept of ROI. Advantages. EVA superior in some cases does not do justice in
evaluating Investment Centres in some cases. Explain with examples. (2006, 02).
34. Management Control practices in Investment Centre induces Goal Congruence wrt. (a)
Idle (b) intangible (c) Leased (d) cash (e) receivables (f) incentives. (2005, 02).
35. Define EVA. Discuss its suitability in Investment Centre performance measure. (2003).
H. Balanced Score Card (BSC)

36. What is Balance Score Card? Describe steps involved in implementations thereof,
difficulties and reasons for failure thereof if any. (2008, 06, 04).
37. What is BSC? Why is it superior to other methods of Performance Appraisal? Prepare
BSC for any organization you are familiar with. (2007).
38. Reasons for failure of BSC/ pitfalls of BSC. (2005, 03).

I. Audits

39. Financial Audit (statutory), Cost Audit, Efficiency Audit. Differences. (2009).
40. Quality, Technical, Management Audit – differences. (2008).
41. Advantages of Internal Audit. (2005).
42. Differences between Financial and Management Audit with examples. (2005).
43. Differentiate between three forms of Internal Audit, Financial Audit, Operational Audit
and Management Audit. (2004*).
44. Although not statutory, organizations use Internal Audit. Comment. (2003).
45. Explain various features of Financial, Operational, and Management Audit (as part of
Internal Audit) with examples. (2002*)(Same).
46. Internal Audit – benefits. (2008).

J. Professional Services, Non Profit Organizations (NPOs)

47. What are the special characteristics of Professional Services Organizations? How is
marketing done? How do we evaluate the performance of a professional? (2007, 06).
48. What is a Non Profit Organization? How is the performance evaluated? (2007).
49. What are the factors which impact Service Organization? (2006).
50. Concept of Profit Centre in Non Profit Organization. (2004).
51. Use of Profit Centre in NPO. (2003).
52. Features of Management Control System in NPO. (2002).

K. Others

53. Zero based budgeting. (2009).

54. Free cash flow with examples. (2009).
55. MCS in Matrix structure and controls. (2004, 03).
56. Different types of strategic missions at SBU level. How do they affect strategic planning
process and budgeting at SBU level? (2007).
57. Divided loyalties among controllers. Role of controller which suits your suggestion.
(2009, 06, 03).
58. Top management styles and implications. (2005, 04, 02).
59. Implications and differentiated strategies on Controls. (2004, 02).
60. What are the conditions in regulating R&D function by top management/ factors in
controlling R&D activities? (2003).
61. Special challenges in controlling R&D activities and possible management initiatives.
(2005).
62. Internal Control Objectives. (2007, 03).
63. Interactive Controls. (2004, 02).
64. Nature of information needed to carry out control activities. (2003).
65. Key differences between a functionally structured and profit centre decentralized co.
advantages and disadvantages of each. (2003).