CWA ICWA Final Group III : Management Accounting - Strategic Management - December 2008

CWA ICWA Final - Group III • Management Accounting - Strategic Management • December 2008

This Paper has 42 answerable questions with 0 answered.

F—P13(MSM) Syllabus 2008
Time Allowed : 3 Hours	Full Marks : 100

The figures in the margin on the right side indicate full marks.
Answer Question Nos. 1 and 6, which are compulsory and any other two from Section I and any two from section II.
SECTION I (60 Marks)
Marks

The figures in the margin on the right side indicate full marks.

Answer Question Nos. 1 and 6, which are compulsory and any other two
from Section I and any two from section II.

SECTION I (60 Marks)

Marks

(a)

Choose the most appropriate one from the stated options and write it down:

1x5

(i)

The managerial task of implementing strategy primarily falls upon the shoulders of

A.	The Chief Executive Officer (CEO);
B.	First line supervisors, who have day–to–day responsibility for seeing that key activities are done properly:
C.	All managers, each attending to what needs to be done in their respective areas of authority and responsibility;
D.	All of the above.

(0)

(ii)

Marketing Research Studies are undertaken

A.
B.
C.
D.

To measure brand loyalty of a class of consumers;
To predict market potential of a product on a future date;
To understand product–price relationships;
All of the above.

(0)

(iii)

Delphi Technique

A.	Is an attempt to describe a sequence of events that demonstrates how a particular goal might be reached;
B.	Is a method of obtaining a systematic refined consensus from a group of experts;
C.	Is assessing the desirability of future goals and thereafter selecting those areas of development that are necessary to achieve the desired goals;
D.	Is concentrating on the impact which various forecasted technological developments might have on particular industries.

(0)

(iv)

Product development policy and strategy involves four phases namely:

A.	Conception development, product marketing, product/process engineering and product launch;;
B.	Concept development, product planning, product/process engineering and pilot production/ramp up;
C.	Product planning, product/process engineering, pilot production/ramp up, marketing;
D.	None of the above.

(0)

(v)

Price fixation for the first time takes place when:

A.
B.
C.
D.

A company develops or acquires a new product;
Introducing existing product into a new geographic area or a new distribution channel;
A service, the company bids for a new contract work;
All of the above.

(0)

(b)

Define the following terms (in not more than two sentences):

2x5

(i)

Long range Planning;

(0)

(ii)

Forecasting;

(0)

(iii)

Econometric Model;

(0)

(iv)

Human Resource Strategy;

(0)

(v)

Marketing Strategy.

(0)

(c)

State whether the following statements, based on the quoted terms, are True or False with justifications for your answer:
If any given statement is False, you are required to give the correct terms, duly quoted. No credit will be given for any answers without justifications.

1x5

(i)

‘Mergers’ are equity arrangements between two or more independent firms.

(0)

(ii)

The formal information collection for organized intelligence system is done through grapevine;

(0)

(iii)

‘Dogs’ are products with a low share, negative growth and negative cash flow.

(0)

(iv)

Simulation model always offers a guaranteed and the best solution.

(0)

(v)

Penetration Pricing is the use of price to drive a competitor out of business.

(0)

(a)

State briefly the purpose of a SWOT analysis. What are the major outcomes from such an analysis?

5+5

(0)

(b)

"The Government of India has been actively pursuing Public–Private Partnership to bridge the deficit in the infrastructure." Estimate the present state of the Public–Private Partnership Scheme.

(0)

(a)

Management Accountant finds himself at the cross roads in the 21st Century – Comment.

(0)

(b)

What in your opinion are the ways he needs to equip himself to be a strategic cost management accountant.

(0)

(a)

"Bargaining power with the Suppliers as well as Buyers comes under strain during inflation in the economy." —Explain.

(0)

(b)

What is the Boston Classification? Write a brief note on the BCG Matrix.

(0)

Write short notes on the following:

4x5

(a)

Strategic Management Process;

(0)

(b)

Nine Price–Quality Strategies

(0)

(c)

Strategic Total Cost Management;

(0)

(d)

Product orientation versus marketing orientation.

(0)

SECTION II (40 Marks)

SECTION II (40 Marks)

(a)

Choose the most appropriate one from the stated options and write it down:

1x5

(i)

Financial risks do not include

A.
B.
C.
D.

trade cycles;
interest rate risk;
inflation rate risk;
exchange risk.

(0)

(ii)

Risk Management techniques do not include

A.
B.
C.
D.

Risk avoidance;
Risk premium;
Risk retention;
Risk transfer.

(0)

(iii)

Project risk does not include

A.
B.
C.
D.

Institutional risk;
Turbulence;
Completion risk;
Uncertainty.

(0)

(iv)

Risk is defined as

A.
B.
C.
D.

A variation from the actual;
A variation from the expected;
A possible event;
A possible uncertainty.

(0)

(v)

General insurance do not include;

A.
B.
C.
D.

Fire policy;
Burglary policy;
Contractor’s all risks policy;
Life policy.

(0)

(b)

State whether the following statements, based on the quoted terms, are ‘True’ or ‘False’ with justifications for your answer.
If any given statement is ‘False’ you are required to give the correct terms, duly quoted. No credit will be given for any answer without justifications.

1x5

(i)

Physical risk arising out of Social, Political, Economic and Legal Environments are often identified through the performance of lead indicators;

(0)

(ii)

The concept of Pooling risk is the process of identification of separate risks and put them all together in a single basket, so that the monitoring, combining, integrating or diversifying risk can be implemented;

(0)

(iii)

Purchasing power risk is the uncertainty of the purchasing power of the monies to be received, in the future;

(0)

(iv)

EPD in risk management means ‘Expected Policy Holder’ Deficit;

(0)

(v)

ECOR in risk management means ‘Economic Cost of Ruin’.

(0)

(a)

"Risk Management Strategies are seven fold." Identify them and briefly discuss any three of them.

3+2x3

(0)

(b)

How is insurance premium computed for a particular product and what is the role of management accountant in this exercise?

3+3

(0)

(a)

Describe "Asset–Liability Model" and its utility for managing liquidity risk and exchange rate risk.

6+3

(0)

(b)

Explain the concept of "Risk Pooling" and Diversification of Risk.

(0)

Write short notes on:

5x3

(a)

Project Risk Management;

(0)

(b)

Risk and Uncertainty;

(0)

(c)

Probability of Ruin.

(0)

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