December, 2011

MS-43 : Management Control Systems

1. Briefly explain the nature and purpose of management control systems and discuss the various critical components of management control systems.

2. Explain the concept of 'Radical Performance Improvement' (RPI) and discuss the application of this frame work in the formulation of corporate strategy.

3. Explain the concept of Responsibility Accounting. Discuss the application of this concept in creating and designing various responsibility centres.

4.  What is an investment base ? Explain the various asset valuation alternatives used for the purpose of calculating investment base.

5.  What do you understand by Transfer Pricing? Explain the Various categories of Inter Company Transfers in the context of transfer pricing.

6.  Explain the following :

(a) Value added analysis

(b) Activity based costing

7.  Explain the distinguishing features of cash flows of insurance companies.  What are the implications of these characteristics on Management Control Systems of insurance  companies ? Discuss.

8.  What are 'development organisations'? Explain the main elements of Management Control Systems for development organisations.