STRATEGIC COST MANAGEMENT IIBM EXAM ANSWER SHEET
STRATEGIC COST MANAGEMENT IIBM EXAM QUESTION AND ANSWER PROVIDED
CONTACT
DR. PRASANTH BE BBA MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
Examination Paper of Project Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM. 100
Strategic Cost Management
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choi ce & Short Notes questions.
Answer all the questions.
Part one carries 1 mark each & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. A set of policies, procedures and approaches that helps a firm attain and retain success for
long is termed as a)
Benchmarking
b) Life cycle costing
c) Target costing
d) Strategy
2. A cost management tool that bring in its focus the activities performed to produced a product
is called a)
Target costing
b) Life cycle costing
c) ABC
d) Benchmarking
3. Cost incurred to the past that are not relevant to present decisions are a)
Fixed cost
b) Sunk cost
c) Opportunity cost
d) Indirect costs
4. In a process costing system, when items are sold, the cost of the item are moved from a)
Work-in-progress to finished goods
b) Work-in-progress to Cost of goods sold
c) Cost of goods sold to finished good
d) Finished goods to cost of goods sold
5. Differential costs are sometimes referred to as a)
Incremental costs
b) Relevant costs
c) Avoidable costs
d) Both a& b
6. Customer service feature does not include a)
Warranty and repair service
b) Adherence to specifications
Examination Paper of Project Management
2
IIBM Institute of Business Management
c) On-time delivery
d) Follow-up with customer after the sale.
7. Product cost are function ofa)
Product design
b) Specific customers
c) Customer characteristics
d) Market segments
8. The company‟s overall sales performance is influenced by factors such as a)
Sales volume
b) Sales Mix
c) Market size and share
d) All of the above
9. Customer life cycle cost includes a)
Purchases price
b) Start-up costs
c) Post-purchase cost
d) All of the above
10. Which stage of product life cycle is characterized by little competition and slowly increasing
sales?
a) Introduction
b) Growth
c) Maturity
d) Decline
Part Two:
1. List the characteristics of Balance score card.
2. What are the methods of Alternative costing?
3. Differentiate between fixed cost and variable cost.
4. Discuss the dissimilarities between job order costing & process costing systems.
END OF SECTION A
Section B: Caselets (40 Marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 word)
Caselet 1
Examination Paper of Project Management
3
IIBM Institute of Business Management
Vikram Ahuja was hired as assistant cost controller of chemfert Ltd., a multinational firm that
processed chemical for use in fertilizers. Soon Vikram learned that the nearby residential landfill
was being used to dump toxic wastes. It appeared that some members of management team were
aware of this situation and may have been involved in arranging for this dumping. uncertain, how
he should approach, Vikram is contemplating several alternatives courses of action , like seeking
the advice of the superior, the controller or anonymously releasing the information in the national
daily or discussing with an outside member of the BOD‟s
Questions:
1. Discuss why Vikram has an ethical responsibility to take some action against the MNC.
2. Which of the alternative courses would be the most appropriate in the given situation?
Caselet 2
A brilliant university is located in Mumbai. The university has four deportments- Business,
humanities, fine arts and engineering. The university is headed by a president who has five
presidents reporting to him, each heading auxiliary services, admission and records, academics.
Financial services and maintenance. In addition, there are managers who report to these vicepresidents.
These include managers for central purchasing, the university press and bookstore; all
of whom report to the vice president of auxiliary services, and managers for accounting and
finance report to vice president for financial services. Further, a dean who is responsible to the
academic vice-president heads each department.
Questions:
1. Prepare an organizational structure of brilliant University.
2. List the name of the departments having under the university.
Section C: Long Questions (30 Marks)
This section consists of Long Questions.
Answer all the questions.
Each question carry 15 marks each.
Detailed information should from the part of your Answer (Word limit 200 to 250 words)
1. What is “Cost management”? Explain the primary objectives of cost management?
2. Define “Target costing”; discuss the principles of target costing.
END OF SECTION C
END OF SECTION B
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM. 100
Strategic Cost Management
Section A: Objective Type & Short Questions (30 Marks)
This section consists of Multiple Choi ce & Short Notes questions.
Answer all the questions.
Part one carries 1 mark each & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. A set of policies, procedures and approaches that helps a firm attain and retain success for
long is termed as a)
Benchmarking
b) Life cycle costing
c) Target costing
d) Strategy
2. A cost management tool that bring in its focus the activities performed to produced a product
is called a)
Target costing
b) Life cycle costing
c) ABC
d) Benchmarking
3. Cost incurred to the past that are not relevant to present decisions are a)
Fixed cost
b) Sunk cost
c) Opportunity cost
d) Indirect costs
4. In a process costing system, when items are sold, the cost of the item are moved from a)
Work-in-progress to finished goods
b) Work-in-progress to Cost of goods sold
c) Cost of goods sold to finished good
d) Finished goods to cost of goods sold
5. Differential costs are sometimes referred to as a)
Incremental costs
b) Relevant costs
c) Avoidable costs
d) Both a& b
6. Customer service feature does not include a)
Warranty and repair service
b) Adherence to specifications
Examination Paper of Project Management
2
IIBM Institute of Business Management
c) On-time delivery
d) Follow-up with customer after the sale.
7. Product cost are function ofa)
Product design
b) Specific customers
c) Customer characteristics
d) Market segments
8. The company‟s overall sales performance is influenced by factors such as a)
Sales volume
b) Sales Mix
c) Market size and share
d) All of the above
9. Customer life cycle cost includes a)
Purchases price
b) Start-up costs
c) Post-purchase cost
d) All of the above
10. Which stage of product life cycle is characterized by little competition and slowly increasing
sales?
a) Introduction
b) Growth
c) Maturity
d) Decline
Part Two:
1. List the characteristics of Balance score card.
2. What are the methods of Alternative costing?
3. Differentiate between fixed cost and variable cost.
4. Discuss the dissimilarities between job order costing & process costing systems.
END OF SECTION A
Section B: Caselets (40 Marks)
This section consists of Caselets.
Answer all the questions.
Each caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 word)
Caselet 1
Examination Paper of Project Management
3
IIBM Institute of Business Management
Vikram Ahuja was hired as assistant cost controller of chemfert Ltd., a multinational firm that
processed chemical for use in fertilizers. Soon Vikram learned that the nearby residential landfill
was being used to dump toxic wastes. It appeared that some members of management team were
aware of this situation and may have been involved in arranging for this dumping. uncertain, how
he should approach, Vikram is contemplating several alternatives courses of action , like seeking
the advice of the superior, the controller or anonymously releasing the information in the national
daily or discussing with an outside member of the BOD‟s
Questions:
1. Discuss why Vikram has an ethical responsibility to take some action against the MNC.
2. Which of the alternative courses would be the most appropriate in the given situation?
Caselet 2
A brilliant university is located in Mumbai. The university has four deportments- Business,
humanities, fine arts and engineering. The university is headed by a president who has five
presidents reporting to him, each heading auxiliary services, admission and records, academics.
Financial services and maintenance. In addition, there are managers who report to these vicepresidents.
These include managers for central purchasing, the university press and bookstore; all
of whom report to the vice president of auxiliary services, and managers for accounting and
finance report to vice president for financial services. Further, a dean who is responsible to the
academic vice-president heads each department.
Questions:
1. Prepare an organizational structure of brilliant University.
2. List the name of the departments having under the university.
Section C: Long Questions (30 Marks)
This section consists of Long Questions.
Answer all the questions.
Each question carry 15 marks each.
Detailed information should from the part of your Answer (Word limit 200 to 250 words)
1. What is “Cost management”? Explain the primary objectives of cost management?
2. Define “Target costing”; discuss the principles of target costing.
END OF SECTION C
END OF SECTION B
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