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Strategic Cost Management MBA Question Paper University of Madras Distance Education May 2014

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Strategic Cost Management MBA Question Paper University of Madras Distance Education May 2014

MAY 2014                                                                                                          P/ID 77805/PMSF5

PART A — (5 × 6 = 30 marks)

  1. What is cost management? Explain its objectives.
  2. What are the pitfalls of activity-based cost system?
  3. What is activity identification? Explain briefly.
  4. What are the advantages of responsibility accounting?
  5. What are the benefits of JTT?
  6. What is target costing? Explain briefly.
  7. How is quality cost is classified in manufacturing organization?
  8. What is internal failure cost? Explain briefly.

 

PART B — (5 × 10 = 50 marks)

  1. What are the inadequacies of traditional method of overhead absorption?
  2. Discuss the types of responsibility centres.
  3. Discuss the need and significance of value chain analysis.
  4. Distinguish between estimated cost and standard cost.
  5. Explain the role of management accountant in acheiving the competitive advantage through value chain analysis.
  6. How business can use life cycle management to create opportunities?
  7. Discuss the steps in tactical decision making.
  8. How do you measure the quality cost effects on productivity?

 

PART C — (1 × 20 = 20 marks)     (Compulsory)

  1. From the following particulars, calculate

(a) Sales price variance

(b) Sales volume variance

(c) Sales value variance.

Product Budgeted quantity Actual quantity

Unit      Price      Unit       Price

A             1000      20           1300      21

B             2000      15           2300      14

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