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Day-wise Breakup
Class
: MBA II Sem III
Subject
: 302 MANAGEMENT CONTROL SYSTEMS
Name of the faculty: Mrs Roopali Kudare
Lecture
No.
Topic
Sub Topic
1
Characteristics of Management
Control System
Evolution of control systems in an
organization
2
Strategic Planning, Management Control
and Operational Control
3
Cybernetic Paradigm of Grissinger
4
Understanding strategies
Concept of strategy, Business Unit level
and corporate strategy
5
Gaining competitive advantage
6
Goals
Hierarchy of Goals
7
Goal congruence factors that affect
goal congruence, formal and informal
systems
8
Types of organization structure in the
perspective of Global scenario
9
Functions of the Controller
10
Responsibility Centers
Types of Responsibility Centers
11
Expense Centers, Profit Centers and
Investment Centers
12
measures used to evaluate their
performances such as ROI,
13
ROA, MVA, EVA DuPont analysis
14
Budgetary Control as a control
tool
Revision of budgets ZBB
15
Budgetary control approach with respect
to Engineered and Discretionary costs
16
Committed costs
17
Capital Budgeting as a tool for
management performance
measurement
Capital Budgeting as a tool for
management performance
measurement
18
Transfer Pricing
Objectives and need of Transfer pricing
Methods of Transfer pricing
19
Cost Based, Market price based, Two
steps, Dual price, Profit sharing-
Administration and Related numerical
problems
20
Performance Evaluation through
Balanced Scorecard
Four perspectives
21
Management Control Systems in
Service Sector
vis--vis in Manufacturing Sector
Banking, Insurance, BPO
22
Introduction to Audit Function
as a control tool covering Financial Audit,
Internal Audit, Cost Audit - Management
Audit Principles and Objectives
Institute of Science, Poona's
Institute of Business Management & Research (IBMR),
Wakad, Pune 57
M. B. A. (Sem III)
MANAGEMENT CONTROL SYSTEM
(U.C. 302)
SECTION I
Q1) Define goal congruence and its relationship to control and performance evaluation.
Explain how you can use Responsibility Centers to encourage goal congruent behavior.
Q2)
Explain the limitations of Accounting performance measures. Explain why accounting
profit measures do not reflect economic income perfectly. Give examples.
Q3)
Describe Griesinger's version of Cybernetic paradigm to represent the control process.
Illustrate with diagram the control process relating superior to subordinate in an
organization.
Q4) What are the attributes of an effective management control system? What are the control
system design parameters?
Q5)
Explain and illustrate the traditional as well as activity base method calculating average
costs of products. Explain with examples why traditional method does not adequately
serve modern organizations as management control tool.
SECTION II
Q1) Explain and compare ROI and RI/Eva as method of performance measurement of a profit
centre. Explain with examples how using ROI can result in rejecting valuable
investments and accepting value losing opportunities.
Q2) A large organization with a well developed cost centre system is considering the
introduction of profit centres thorughout the organization. AS a Controller you are
required to prepare a note for the management outlining the following.
a) To describe the main characteristics and objectives of profit centers.
b) To explain what conditions are necessary for the successful introduction of profit
centres.
c) To describe the main behavioral and control consequences which may arise if
such centres are introduced?
Q3) Compare the nature of decision making involved in the planning and control of:
a) Strategy formulation
b) Management control
c) Operations (task) Control
Q4) Explain Formal and Informal Management Control Systems with the help of
following subsystems.
a) Infrastructure.
b) Management Style and culture.
c) Rewards.
d) Coordination and integration;
e) Control Process.
Q 5) What are the differences between Engineered Expense Center and Discretionary Expense
Center? Give your answer with respect to following control characteristics.
a) Budget Preparation.
b) Cost variability.
c) Type of Financial Control.
d) Measurement of Performance.
Give examples to support your answer.
SECTION III
Q1)
In deciding on the investment base to be used in evaluating managers of Investment
centres what practices best measure the performance of the unit as an economic entity?
Give pros and cons of different practices related to current and fixed assets measurement.
Q2) Discuss the issues related with how the fixed and current assets employed in an
investment centre should be measured. Also explain issues concerning method of
depreciation, allocation of corporate overheads and treatment of current liabilities in an
investment centre.
Q3)
"The Balanced Score card fosters a balance between otherwise desperate strategic
measures in an effort to achieve goal congruence". Discuss and bring out the cause and
effect relationship among measures.
Q4) Explain and compare R 0 I and RI/EV A as method of performance measurement in an
Investment Center. Explain with examples how ROI can result in rejecting valuable
investments and accept value losing projects.
Q5)
Explain Formal and Informal Management Control Systems with the help of following
subsystems.
a) Infrastructure.
b) Management Style and culture.
c) Rewards.
d) Coordination and integration;
e) Control Process.
SECTION IV
Case I
Zenith Ltd. Uses ROI to measure the performance of its operating divisions.
A summary of annual reports from two divisions is shown below; the company's cost is 12
percent.
Division A Division B
Capital Invested Rs. 2, 40,000 Rs.4, 00,000
Net Profit Rs. 48,000 Rs. 72,000
ROI 20% 18%
1. What performance measurement procedure involving cost of capital would more clearly
show the profitability of the divisions? Show numerically the result
2. Compare merits and demerits of such a performance measurement system with ROI
3. At what cost of capital both divisions be considered equally profitable as per method in Q.1.
4. Suppose the manager of Division A were offered a one year project that would increase the
investment base by Rs.1,00,000 and show an additional profit of Rs. 15,000, would the manager
accepts this project if he were evaluated .
a) On his divisional ROI ?
b) On the method involving cost of capital as in Q.1 ?
Give reasons for your answer.
Case II
Amol & Co produces "Control Panels" and sells them to OEMs. Annual off take of the
panel is 100,000 nos. and no change is expected in the demand for this product in the near
future.
A part "Base plate " is required for th assembly of control panels; one base plate per
control panel
This part 'Base plate 'is presently being procured from M/s Bharat Plate Makers at a basic
price of Rs.2.40 per plate. Total procurement cost works out to Rs.3.00 per plate. The supplier
has now informed that with immediate effect the basic price will be Rs.3.00 per plate and the
resultant procurement cost of Rs.4.00 per plate
The company is , therefore, thinking of manufacturing the plant in-house.
Following estimates have been made for such manufacture :
1) Cost for 100,000 base plates
Rs.
Raw materials 85,000
Direct labour 80,000
Variable factory overheads 1,60,000
General fixed overheads
50,000
Total 3,75,000
Cost per plate Rs.3.75
2) There is adequate plant capacity available to undertake the manufacture base plates
in-house-except the space.
3) Presently a vacant space in the pant has been rented out to another manufacturer
who pays annual reamt of Rs.48,000, under contract. To discontinue contract, 2 months rent will
have to be paid as compensation to the party.
Prepare a statement, on annual basis, showing savings / increase in cost due to
discontinuing buying the plates and commencing manufature of the plates in plant.
Case III
Division A of a large divisionalized organization manufactures a single standardzid product.
Some of the output is sold externally whilst the remainder is transferred to Division B where it is
a subassembly in the manufacture of that division's product. The unit cost of Division A's
product are as follows:
($)
Direct material 4
Direct labour 2
Direct expenses 2
Variable manufacturing overheads 2
Fixed manufacturing overheads 4
Selling and packing expense variable 1
15
Annually 10000 units of the product are sold externally at the standard price of $30
In addition to the external sales, 5000 units are transferred annually to Division B at an internal
transfer charge of $29 per unit. This transfer price is obtained by deducting variable selling and
packing expense from the external price since this expense is not incurred for internal transfers.
Division B incorporates the transferred-in goods into a more advanced product. The unit costs of
this product are as follows.
($)
Transferred-in item (from Division A) 29
Direct material and components 23
Direct labour 3
Variable overheads 12
Fixed overheads 12
Selling and packing expense variable 1..
80
Division B's manager disagrees with the basis used to set the transfer price. He argues that the
transfers should be made at variable cost plus an agreed (minimal) mark-up since he claimed that
division is taking output that Division A would be unable to sell at the price of $30
Customer demand at various selling prices
Division A
Selling price $20 $30 $40
Demand 15000 100001 5000
Division B
Selling price $80 $90 $100
Demand 7200 5000 2800
The manager of Division B claims that this study supports his case. He suggests that a transfer
price of $12 would give Division A a reasonable contribution to its fixed overheads while
allowing Division B to earn a reasonable profit. He also believed that it would lead to an increase
of output and an improvement in the overall level of company profits
You are required:
a) to calculate the effect hat the transfer pricing system has had on the company's
profits, and
b) to establish the likely effect on profit of the suggestion by the manager of Division
B of a transfer price of $12.
Case IV
Fastner International Ltd. is having production shops reckoned as profit centres. Each
shop is allowed to charge other shops for materials supplied and services rendered. The shops are
motivated through goal congruence, autonomy and management efforts.
The company is having a welding shop as well as a painting shop. The welding shop
welds annually 72,000 purchased items with other 1,56,000 shop made parts in to 12,000
assemblies. Total cost of this assembly for the welding shop works out to Rs. 24,000 p.a. for this
level of operations.
Out of the total production, 80% is diverted to painting shop at the same price i.e. Rs. 12
per assembly and remaining sold in the market.
The printing shop's cost of painting including transfer price from welding shop comes to
Rs. 20 each. Painting shop sells all the assemblies duly painted at a price of Rs. 25 each. Painting
shop's fixed costs are Rs. 30,000 p.a.
The manager of the welding shop has ascertained from the market that of late demand for
the welded (unpainted) assembly has increased substantially and this situation is expected to
continue for another 6 to 8 months. This has resulted I an increase in the market price from
present Rs. 12 each to Rs. 14 each. He, therefore, proposes to increase the transfer price for
supplies to painting shop.
Manager of the painting shop refuses to accept the new transfer price of Rs. 14 each on
the ground that his profitability will be adversely affected.
Welding shop manager, therefore, proposes that, since supplying assemblies to painting
shop at existing transfer price he is loosing Rs. 2 per assembly he should at least be allowed to
sell in the external market extra quantity of 20% of his total present production in order to
partially compensate him for the loss. He is then prepared to continue with the present transfer
price for the balance quantity of painted assemblies to the extent of only the quantities received
from welding shop.
Will this proposal benefit him? What will be the effect of it on the profitability of the
painting shop as well as the total company?
Justify your answer with appropriate and detailed calculations.
Case V
The Allison-Chambers Corporation, manufacturer of tractors and other heavy farm equipment, is
organized along decentralized lines, with each manufacturing division operating as a separate
profit center. Each division manager has been delegated full authority on a11 decisions involving
the sale of that division's output both to outsiders and to other divisions of Allison-Chambers.
Division C has in the past always purchased its requirement of a particular tractorengine
component from Division A. However, when informed that Division A is increasing its selling
price to $150, Division C' s manager decides to purchase the engine component from outside
suppliers.
Division C can purchase the component for $135 on the open market. Division A insists that,
because of the recent installation of some highly specialized equipment and the resulting high
depreciation charges, it will not be able to earn an adequate return on its investment unless it
raises its price. Division A's manager appeals to top management of Allison-Chambers for
support in the dispute with Division C and supplies the following operating data:
C's annual purchases of tractor-engine component 1,000 units
A's variable costs per unit of tractor-engine component $120
A's fixed costs per unit of tractor-engine component $20
REQUIRED
I. Assume that there are no alternative uses for internal facilities. Determine
whether the company as a whole will benefit if Division C purchases the
component from outside suppliers for $135 per unit.
2. Assume that internal facilities of Division A would not otherwise be idle.
By not producing the 1,000 units for Division C, Division A's equipment
and other facilities would be used for other production operations that
would result in annual cash-operating savings of$18,000. Should Division
C purchase from outside suppliers?
3) Assume that there are no alternative uses for Division A's internal facilities
and that the price from outsiders drops $20. Should Division C purchase
from outside suppliers?
SECTION V
Write Short Note on (Any three)
a) Management Audit.
b) Just in Time.
c) Two Step Transfer Price
d) Value Chain as a Strategy Formulation Tool.
e) TQM's role for development of non-financial performance measures.
f) ROI vs. EVA as performance measures.
g) Control Systems in service Organizations.
h) Budgeting for R & D.
i) Control Systems in Service Organizations.
j) Strategic Planning and Management Control.
k) Annuity Depreciation.
l) Engineered and Discretionary expense centres.
m) Internal Audit.
n) Activity Based Costing.
o) Two step Transfer Pricing.
p) Market based and cost based transfer pricing.
q) Statutory Audit
r) Management style and culture.
s) Advantages and disadvantages of profit centre.
t) Role of Controller.
Class
: MBA II Sem III
Subject
: 302 MANAGEMENT CONTROL SYSTEMS
Name of the faculty: Mrs Roopali Kudare
Lecture
No.
Topic
Sub Topic
1
Characteristics of Management
Control System
Evolution of control systems in an
organization
2
Strategic Planning, Management Control
and Operational Control
3
Cybernetic Paradigm of Grissinger
4
Understanding strategies
Concept of strategy, Business Unit level
and corporate strategy
5
Gaining competitive advantage
6
Goals
Hierarchy of Goals
7
Goal congruence factors that affect
goal congruence, formal and informal
systems
8
Types of organization structure in the
perspective of Global scenario
9
Functions of the Controller
10
Responsibility Centers
Types of Responsibility Centers
11
Expense Centers, Profit Centers and
Investment Centers
12
measures used to evaluate their
performances such as ROI,
13
ROA, MVA, EVA DuPont analysis
14
Budgetary Control as a control
tool
Revision of budgets ZBB
15
Budgetary control approach with respect
to Engineered and Discretionary costs
16
Committed costs
17
Capital Budgeting as a tool for
management performance
measurement
Capital Budgeting as a tool for
management performance
measurement
18
Transfer Pricing
Objectives and need of Transfer pricing
Methods of Transfer pricing
19
Cost Based, Market price based, Two
steps, Dual price, Profit sharing-
Administration and Related numerical
problems
20
Performance Evaluation through
Balanced Scorecard
Four perspectives
21
Management Control Systems in
Service Sector
vis--vis in Manufacturing Sector
Banking, Insurance, BPO
22
Introduction to Audit Function
as a control tool covering Financial Audit,
Internal Audit, Cost Audit - Management
Audit Principles and Objectives
Institute of Science, Poona's
Institute of Business Management & Research (IBMR),
Wakad, Pune 57
M. B. A. (Sem III)
MANAGEMENT CONTROL SYSTEM
(U.C. 302)
SECTION I
Q1) Define goal congruence and its relationship to control and performance evaluation.
Explain how you can use Responsibility Centers to encourage goal congruent behavior.
Q2)
Explain the limitations of Accounting performance measures. Explain why accounting
profit measures do not reflect economic income perfectly. Give examples.
Q3)
Describe Griesinger's version of Cybernetic paradigm to represent the control process.
Illustrate with diagram the control process relating superior to subordinate in an
organization.
Q4) What are the attributes of an effective management control system? What are the control
system design parameters?
Q5)
Explain and illustrate the traditional as well as activity base method calculating average
costs of products. Explain with examples why traditional method does not adequately
serve modern organizations as management control tool.
SECTION II
Q1) Explain and compare ROI and RI/Eva as method of performance measurement of a profit
centre. Explain with examples how using ROI can result in rejecting valuable
investments and accepting value losing opportunities.
Q2) A large organization with a well developed cost centre system is considering the
introduction of profit centres thorughout the organization. AS a Controller you are
required to prepare a note for the management outlining the following.
a) To describe the main characteristics and objectives of profit centers.
b) To explain what conditions are necessary for the successful introduction of profit
centres.
c) To describe the main behavioral and control consequences which may arise if
such centres are introduced?
Q3) Compare the nature of decision making involved in the planning and control of:
a) Strategy formulation
b) Management control
c) Operations (task) Control
Q4) Explain Formal and Informal Management Control Systems with the help of
following subsystems.
a) Infrastructure.
b) Management Style and culture.
c) Rewards.
d) Coordination and integration;
e) Control Process.
Q 5) What are the differences between Engineered Expense Center and Discretionary Expense
Center? Give your answer with respect to following control characteristics.
a) Budget Preparation.
b) Cost variability.
c) Type of Financial Control.
d) Measurement of Performance.
Give examples to support your answer.
SECTION III
Q1)
In deciding on the investment base to be used in evaluating managers of Investment
centres what practices best measure the performance of the unit as an economic entity?
Give pros and cons of different practices related to current and fixed assets measurement.
Q2) Discuss the issues related with how the fixed and current assets employed in an
investment centre should be measured. Also explain issues concerning method of
depreciation, allocation of corporate overheads and treatment of current liabilities in an
investment centre.
Q3)
"The Balanced Score card fosters a balance between otherwise desperate strategic
measures in an effort to achieve goal congruence". Discuss and bring out the cause and
effect relationship among measures.
Q4) Explain and compare R 0 I and RI/EV A as method of performance measurement in an
Investment Center. Explain with examples how ROI can result in rejecting valuable
investments and accept value losing projects.
Q5)
Explain Formal and Informal Management Control Systems with the help of following
subsystems.
a) Infrastructure.
b) Management Style and culture.
c) Rewards.
d) Coordination and integration;
e) Control Process.
SECTION IV
Case I
Zenith Ltd. Uses ROI to measure the performance of its operating divisions.
A summary of annual reports from two divisions is shown below; the company's cost is 12
percent.
Division A Division B
Capital Invested Rs. 2, 40,000 Rs.4, 00,000
Net Profit Rs. 48,000 Rs. 72,000
ROI 20% 18%
1. What performance measurement procedure involving cost of capital would more clearly
show the profitability of the divisions? Show numerically the result
2. Compare merits and demerits of such a performance measurement system with ROI
3. At what cost of capital both divisions be considered equally profitable as per method in Q.1.
4. Suppose the manager of Division A were offered a one year project that would increase the
investment base by Rs.1,00,000 and show an additional profit of Rs. 15,000, would the manager
accepts this project if he were evaluated .
a) On his divisional ROI ?
b) On the method involving cost of capital as in Q.1 ?
Give reasons for your answer.
Case II
Amol & Co produces "Control Panels" and sells them to OEMs. Annual off take of the
panel is 100,000 nos. and no change is expected in the demand for this product in the near
future.
A part "Base plate " is required for th assembly of control panels; one base plate per
control panel
This part 'Base plate 'is presently being procured from M/s Bharat Plate Makers at a basic
price of Rs.2.40 per plate. Total procurement cost works out to Rs.3.00 per plate. The supplier
has now informed that with immediate effect the basic price will be Rs.3.00 per plate and the
resultant procurement cost of Rs.4.00 per plate
The company is , therefore, thinking of manufacturing the plant in-house.
Following estimates have been made for such manufacture :
1) Cost for 100,000 base plates
Rs.
Raw materials 85,000
Direct labour 80,000
Variable factory overheads 1,60,000
General fixed overheads
50,000
Total 3,75,000
Cost per plate Rs.3.75
2) There is adequate plant capacity available to undertake the manufacture base plates
in-house-except the space.
3) Presently a vacant space in the pant has been rented out to another manufacturer
who pays annual reamt of Rs.48,000, under contract. To discontinue contract, 2 months rent will
have to be paid as compensation to the party.
Prepare a statement, on annual basis, showing savings / increase in cost due to
discontinuing buying the plates and commencing manufature of the plates in plant.
Case III
Division A of a large divisionalized organization manufactures a single standardzid product.
Some of the output is sold externally whilst the remainder is transferred to Division B where it is
a subassembly in the manufacture of that division's product. The unit cost of Division A's
product are as follows:
($)
Direct material 4
Direct labour 2
Direct expenses 2
Variable manufacturing overheads 2
Fixed manufacturing overheads 4
Selling and packing expense variable 1
15
Annually 10000 units of the product are sold externally at the standard price of $30
In addition to the external sales, 5000 units are transferred annually to Division B at an internal
transfer charge of $29 per unit. This transfer price is obtained by deducting variable selling and
packing expense from the external price since this expense is not incurred for internal transfers.
Division B incorporates the transferred-in goods into a more advanced product. The unit costs of
this product are as follows.
($)
Transferred-in item (from Division A) 29
Direct material and components 23
Direct labour 3
Variable overheads 12
Fixed overheads 12
Selling and packing expense variable 1..
80
Division B's manager disagrees with the basis used to set the transfer price. He argues that the
transfers should be made at variable cost plus an agreed (minimal) mark-up since he claimed that
division is taking output that Division A would be unable to sell at the price of $30
Customer demand at various selling prices
Division A
Selling price $20 $30 $40
Demand 15000 100001 5000
Division B
Selling price $80 $90 $100
Demand 7200 5000 2800
The manager of Division B claims that this study supports his case. He suggests that a transfer
price of $12 would give Division A a reasonable contribution to its fixed overheads while
allowing Division B to earn a reasonable profit. He also believed that it would lead to an increase
of output and an improvement in the overall level of company profits
You are required:
a) to calculate the effect hat the transfer pricing system has had on the company's
profits, and
b) to establish the likely effect on profit of the suggestion by the manager of Division
B of a transfer price of $12.
Case IV
Fastner International Ltd. is having production shops reckoned as profit centres. Each
shop is allowed to charge other shops for materials supplied and services rendered. The shops are
motivated through goal congruence, autonomy and management efforts.
The company is having a welding shop as well as a painting shop. The welding shop
welds annually 72,000 purchased items with other 1,56,000 shop made parts in to 12,000
assemblies. Total cost of this assembly for the welding shop works out to Rs. 24,000 p.a. for this
level of operations.
Out of the total production, 80% is diverted to painting shop at the same price i.e. Rs. 12
per assembly and remaining sold in the market.
The printing shop's cost of painting including transfer price from welding shop comes to
Rs. 20 each. Painting shop sells all the assemblies duly painted at a price of Rs. 25 each. Painting
shop's fixed costs are Rs. 30,000 p.a.
The manager of the welding shop has ascertained from the market that of late demand for
the welded (unpainted) assembly has increased substantially and this situation is expected to
continue for another 6 to 8 months. This has resulted I an increase in the market price from
present Rs. 12 each to Rs. 14 each. He, therefore, proposes to increase the transfer price for
supplies to painting shop.
Manager of the painting shop refuses to accept the new transfer price of Rs. 14 each on
the ground that his profitability will be adversely affected.
Welding shop manager, therefore, proposes that, since supplying assemblies to painting
shop at existing transfer price he is loosing Rs. 2 per assembly he should at least be allowed to
sell in the external market extra quantity of 20% of his total present production in order to
partially compensate him for the loss. He is then prepared to continue with the present transfer
price for the balance quantity of painted assemblies to the extent of only the quantities received
from welding shop.
Will this proposal benefit him? What will be the effect of it on the profitability of the
painting shop as well as the total company?
Justify your answer with appropriate and detailed calculations.
Case V
The Allison-Chambers Corporation, manufacturer of tractors and other heavy farm equipment, is
organized along decentralized lines, with each manufacturing division operating as a separate
profit center. Each division manager has been delegated full authority on a11 decisions involving
the sale of that division's output both to outsiders and to other divisions of Allison-Chambers.
Division C has in the past always purchased its requirement of a particular tractorengine
component from Division A. However, when informed that Division A is increasing its selling
price to $150, Division C' s manager decides to purchase the engine component from outside
suppliers.
Division C can purchase the component for $135 on the open market. Division A insists that,
because of the recent installation of some highly specialized equipment and the resulting high
depreciation charges, it will not be able to earn an adequate return on its investment unless it
raises its price. Division A's manager appeals to top management of Allison-Chambers for
support in the dispute with Division C and supplies the following operating data:
C's annual purchases of tractor-engine component 1,000 units
A's variable costs per unit of tractor-engine component $120
A's fixed costs per unit of tractor-engine component $20
REQUIRED
I. Assume that there are no alternative uses for internal facilities. Determine
whether the company as a whole will benefit if Division C purchases the
component from outside suppliers for $135 per unit.
2. Assume that internal facilities of Division A would not otherwise be idle.
By not producing the 1,000 units for Division C, Division A's equipment
and other facilities would be used for other production operations that
would result in annual cash-operating savings of$18,000. Should Division
C purchase from outside suppliers?
3) Assume that there are no alternative uses for Division A's internal facilities
and that the price from outsiders drops $20. Should Division C purchase
from outside suppliers?
SECTION V
Write Short Note on (Any three)
a) Management Audit.
b) Just in Time.
c) Two Step Transfer Price
d) Value Chain as a Strategy Formulation Tool.
e) TQM's role for development of non-financial performance measures.
f) ROI vs. EVA as performance measures.
g) Control Systems in service Organizations.
h) Budgeting for R & D.
i) Control Systems in Service Organizations.
j) Strategic Planning and Management Control.
k) Annuity Depreciation.
l) Engineered and Discretionary expense centres.
m) Internal Audit.
n) Activity Based Costing.
o) Two step Transfer Pricing.
p) Market based and cost based transfer pricing.
q) Statutory Audit
r) Management style and culture.
s) Advantages and disadvantages of profit centre.
t) Role of Controller.