Description
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Strategic Cost Management
1. “Balanced Scorecard communication happens through a logical structure, based on the management of established goals; enabling managers to reallocate physical, financial and human resources in order to achieve strategic objectives. More than a
performance measurement tool, the Balanced Scorecard is a translator of strategy and a performance communicator. “
In light of the above words of Kaplan and Norton, describe the 4 perspectives that are viewed from a Balanced scorecard perspective.
Give an example of a Balanced Scorecard for any company of your choice in the following format:
Perspective Objectives Goals Indicators Initiatives
1 XYZ
2 ABC
3 PQR
4 EFG
2. Budgeting is a very critical exercise for People’s Bank. Like in every organization, the CMD, Mr Rahul Mehta calls for a meeting with the top team to prepare the budget for the next year. He wants to explain to all managers that co-ordination of all departments is critical to achieving the Budget.
As the CFO of People’s Bank, please assist Mr Mehta in preparing a presentation to the team to include:
a) Difference between Budget and Budgetary Control
b) Any 5 Essential features of a Budgetary control system
c) Features of the Master Budget (10 Marks)
3. XYZ Company’s financial data is as follows:
Particulars 31st Mar' 19 Amt (Rs) 31st Mar' 20 Amt (Rs)
Land and Building 18,00,000 18,00,000
Cash 2,00,000 160,000
Sundry Debtors 3,20,000 400,000
Temporary Investments 2,00,000 320,000
Stock 18,40,000 21,60,000
Prepaid Expenses 2,80,000 12000
Plant and Machinery 9,60,000 15,48,000
Total Assets 56,00,000 64,00,000.00
Current Liabilities 6,40,000 8,00,000
Loans 16,00,000 16,00,000
Capital 20,00,000 20,00,000
Retained Earnings 4,68,000 8,12,000
Statement of Profit for the Current Year 1st Apr to 31st Mar' 20 : Amt (Rs)
Sales 40,00,000
Less: Cost of Goods Sold -28,00,000
Less: Interest -1,60,000
Net Profit 10,40,000
Less: Taxes @ 50% -5,20,000
Profit after Tax 5,20,000
Profit Distributed 2,20,000
a. Basis the above, comment on the financial position of the company post
calculating:
• Current Ratio
• Debtors Turnover Ratio
• Stock Turnover Ratio (5 Marks)
b. Share your views on the profitability of the company by calculating:
• Gross Profit Ratio
• Return on Total Assets
• Return on Equity Funds (5 Marks)
For Nmims answersheets contact
[email protected]
+91 95030-94040
doc_678977883.docx
For Nmims answersheets contact
[email protected]
+91 95030-94040
Strategic Cost Management
1. “Balanced Scorecard communication happens through a logical structure, based on the management of established goals; enabling managers to reallocate physical, financial and human resources in order to achieve strategic objectives. More than a
performance measurement tool, the Balanced Scorecard is a translator of strategy and a performance communicator. “
In light of the above words of Kaplan and Norton, describe the 4 perspectives that are viewed from a Balanced scorecard perspective.
Give an example of a Balanced Scorecard for any company of your choice in the following format:
Perspective Objectives Goals Indicators Initiatives
1 XYZ
2 ABC
3 PQR
4 EFG
2. Budgeting is a very critical exercise for People’s Bank. Like in every organization, the CMD, Mr Rahul Mehta calls for a meeting with the top team to prepare the budget for the next year. He wants to explain to all managers that co-ordination of all departments is critical to achieving the Budget.
As the CFO of People’s Bank, please assist Mr Mehta in preparing a presentation to the team to include:
a) Difference between Budget and Budgetary Control
b) Any 5 Essential features of a Budgetary control system
c) Features of the Master Budget (10 Marks)
3. XYZ Company’s financial data is as follows:
Particulars 31st Mar' 19 Amt (Rs) 31st Mar' 20 Amt (Rs)
Land and Building 18,00,000 18,00,000
Cash 2,00,000 160,000
Sundry Debtors 3,20,000 400,000
Temporary Investments 2,00,000 320,000
Stock 18,40,000 21,60,000
Prepaid Expenses 2,80,000 12000
Plant and Machinery 9,60,000 15,48,000
Total Assets 56,00,000 64,00,000.00
Current Liabilities 6,40,000 8,00,000
Loans 16,00,000 16,00,000
Capital 20,00,000 20,00,000
Retained Earnings 4,68,000 8,12,000
Statement of Profit for the Current Year 1st Apr to 31st Mar' 20 : Amt (Rs)
Sales 40,00,000
Less: Cost of Goods Sold -28,00,000
Less: Interest -1,60,000
Net Profit 10,40,000
Less: Taxes @ 50% -5,20,000
Profit after Tax 5,20,000
Profit Distributed 2,20,000
a. Basis the above, comment on the financial position of the company post
calculating:
• Current Ratio
• Debtors Turnover Ratio
• Stock Turnover Ratio (5 Marks)
b. Share your views on the profitability of the company by calculating:
• Gross Profit Ratio
• Return on Total Assets
• Return on Equity Funds (5 Marks)
For Nmims answersheets contact
[email protected]
+91 95030-94040
doc_678977883.docx