**34**answerable questions with

**0**answered.

I—9(MPM)Revised Syllabus | |

Time Allowed : 3 Hours | Full Marks : 100 |

Answer Question No. 1 of Part A which is compulsory andanother five questions from Part B. |

PART — A |

Marks |

1. | (a) | Match the following by choosing the correct statement from Column II for each expression under Column I.
| 1x5=5 | (0) | ||||||||||||||||||||||||||

(b) | Complete the following statement: | 1x5=5 | ||||||||||||||||||||||||||||

(i) | A profit center whose performance is measured by its ROI is known _______ | (0) | ||||||||||||||||||||||||||||

(ii) | JIT is a _______ | (0) | ||||||||||||||||||||||||||||

(iii) | Algorithm is _______ | (0) | ||||||||||||||||||||||||||||

(iv) | Degeneracy in a simplex problem is a situation where _______ | (0) | ||||||||||||||||||||||||||||

(v) | Stepping stone method is a procedure for _______ | (0) | ||||||||||||||||||||||||||||

(c) | In the following cases one of the answers is most appropriate. indicate it by the small alphabet (a, b, c or d): | 1x5=5 | ||||||||||||||||||||||||||||

(i) | he factors, influencing finished goods inventory are:
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(ii) | MRP II means:
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(iii) | Quantitative Techniques are useful in:
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(iv) | Value Engineering lead to:
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(v) | In a waiting line problem, the customer arrival is expected to follow:
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(d) | Define the following terms, in not more than one / two sentences only: | 1x5=5 | ||||||||||||||||||||||||||||

(i) | Balance Scorecard Approach; | (0) | ||||||||||||||||||||||||||||

(ii) | Margin of Safety; | (0) | ||||||||||||||||||||||||||||

(iii) | Total Quality Management; | (0) | ||||||||||||||||||||||||||||

(iv) | Activity Based Costing; | (0) | ||||||||||||||||||||||||||||

(v) | Basis Theorem in LP. | (0) |

PART — B |

2. | (a) | "Change has become inevitable in the dynamic business world of today. Employees in the organization often tend to vehemently resist the change for various reasons"
| 4+4 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | Briefly state the salient features of 'Management'. | 8 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

3. | (a) | "Profitability alone cannot be the sole criteria for measuring the performance of any public undertaking." — Comment on this statement. | 4 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | The Pupit‘s Book Co. has two book selling outlets: Kalidas Book House and Tulsidas Book House. Each store has a manager who has a great deal of decision authority over the individual stores. A central office however, handles advertising, marketing research, acquisition of books, legal services, and other staff functions. The Pubil‘s Book Co‘s current accounting system allocates all costs to the stores. Results for 2002–03 were.
Each bookstore manager makes decisions that effect salaries and wages, supplies and depreciation. In contrast, rent and utilities are beyond the managers‘ control because the managers did not choose the location or size of the store. Supplies are variable costs. Variable salaries and wages are equal to 8% of the cost of merchandise sold; the remainder of salaries and wages is a fixed cost. Rent, utilities, and depreciation are also fixed costs. Allocated staff costs are unaffected by any events at the bookstores, but they are allocated as a proportion of sales revenue.
| 6+3+3 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

4. | (a) | Great Eastern Enterprises which makes only one product, sells 1,00,000 units of its product making a loss of Rs. 1,00,000. The variable cost per unit of the product is Rs. 8 and the fixed cost is Rs. 3,00,000. The company has estimated its sale demand as follows:
| 3+3 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | In relation to linear programming explain "Dual Problem". | 5 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(c) | In a factory three products A, B and C are produced. There is the possibility of applying two strategies — produce all the three items or any two of them. Products A and C pass through shops I and II where as B is further processed in shop III. Each has limited available hours. Hours available in shops I, II and III are 162 hours, 189 hours and 5 hours respectively. Profit per unit of A, B and C is Rs. 27 Rs. 29 and Rs. 25 respectively. The following table gives the processing time of different items in different shops.
Formulate the problem as a linear programming model to maximize total profit. You are not required to solve the problem. | 5 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

5. | (a) | Customers arrive a window drive in a bank according to poisson distribution with mean 10 per hour. Service time per customer is exponential with mean 5 minutes. The space in front of the window including that for the serviced car, can accommodate a maximum of three cars. Other cars can wait outside this space.
| 2+2 +2=6 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | Ramu and Raju are worked on a two – stations assembly line. The distribution of activity times at their stations are as given below: Time frequency for Raju (sec)
Use the random number given below:
| 8+2=10 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

6. | (a) | A company manufactures two products X and Y. A forecast of unit to be sold in the first 4 months of the year is given below:
There will be no opening and closing work-in-progress (WIP) at the end of any month and finished product (in units) is equal to half of the budgeted sale of the next month should be in stock at the end of each month (including previous year December) (i) Production Budget for the period January to April, and (ii) Summarized Production Cost Budget. | 4+4=8 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | The cost of an article at a capacity level of 5,000 units is given in the table below under Column A. For a variation of 25% in capacity above or below this level, the individual expenses vary, as indicated in column B.
You are required to prepare the production cost Budget (flexible) at 4000 units and 6000 units. | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

7. | (a) | A cost accountant of a company was given the following information regarding the fixed overheads for March, 2003:
| 9 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | S Ltd. has been operating a new manufacturing process for about five months and the manager estimates that there is a 90% chance the process is currently operating in an in–control state. The process is such that if it is in an in–control or an out of control state–it–will not change without some form of intervention. If the process is investigated the cost of the investigation is estimated to be Rs. 2,000 and if a correction is necessary the cost of correction will be an additional Rs. 1,000. If the process is allowed to operate is an out–of–control state the incremental cost is expected to be Rs. 11,000 over the planning horizon. Calculate the probability of the process being out–of–control that would make management indifferent between investigating and not investigating the process, Calculate the expected cost of each action. | 7 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

8. | Write short notes on any four from the following: | 4x4=16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(a) | Activity based budgeting; | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | Value analysis; | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(c) | The new management revolution; | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(d) | Performance budgeting; | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(e) | Responsibility accounting. | (0) |