Sureshot 50+ Marks - More than 200 Actual Exam Questions- Vikalp and Manmohan Gupta

CHAPTERWISE IMPORTANT TOPIC WITH VIDEO

SOLUTIONS AND ICAI SM LINKAGE
Chapters Practical / Theory Concept Bites SM Pg.No.
Chapter 1
Value Chain Analysis (Michael Porter) Theory https://youtu.be/xl8v7Hu8dhU?si=HIK9wpF1rgTyZr6e Page No.- 1.6 & 8.7
Strategic Positioning Analysis Theory https://youtu.be/DtzMtB9L97E?si=loPI4-yMcKvEuXI8 Page No.- 1.11
Differentiation & Cost leadership Theory https://youtu.be/P9Zg9-KP-hA?si=v-K0TOCD2NalaZ9J Page No.- 1.20
Porter’s 5 forces model (Industry Structure
Theory https://youtu.be/ND8QwcuOQP8?si=BdAv_HXJ5sH5V3AT Page No.- 1.35
Analysis)
1) Value Chain Analysis
2) Strategic Positioning Analysis
Pillars of Strategic Cost Management Theory 3) Cost Driver Analysis means the examination, quantification, and -
explanation of the monetary effects of cost drivers associated with an
activity.
Information Technology (IT), Information System (IS) and Information
Management (IM), all three are inter-connected; but not same.
Information systems, information mgt, information
Theory IM strategy is relationship oriented. -
technology
IT strategy is supply-oriented
IS strategy is demand-oriented

Chapter 2
Components of Cost of quality Mix https://youtu.be/oEvucgr3w_E?si=a9K_YcHx7WNdrxz3 Page No.- 2.4
Six C’s of TQM Theory https://youtu.be/5VkfwrLkZAw?si=BYRGi0mLf2BnGX64 Page No.- 2.12
Relationship Marketing Theory https://youtu.be/O8k4ETH-hfA?si=eJJEKqDYuUY8ME_4 Page No.- 2.22
Service level Agreement Practical https://youtu.be/Y1GMVnfUj-s?si=UD2MKd0fSeo5KBuj Page No.- 2.29
Gain Sharing Arrangement Theory https://youtu.be/o10F9aoRfEY?si=kJNyLAh9-P_hF-wM Page No.- 2.32
Downsizing decision mean reduction in workforce due to economic
slowdown. Workforce reduction, work redesign,and systemic
strategy are the three most common downsizing strategies.

Outsourcing is defined as the transfer of non-core business functions or

Downsizing, outsourcing, offshoring Theory -
activities to other external organizations

Offshoring is the process of moving or relocating an organization's

business or functions to another country where the cost of running such
a business
Push Model: Manufacture based on forecast + Inventory produce in
advance
Pull Model: Manufacture based on Order + Inventory produce in need
Other Concepts Theory -
basis
Upstream Supply chain: Relationship with Supplier
Downstream: Relationship with Customer
Chapter 3
Kaizen Costing & Principles Theory https://youtu.be/G1gIJiVz0iU?si=T46_TRbhbJxi2HzF Page No.- 3.17
5S Lean Innovation Theory https://youtu.be/StkC8lS0Ef4?si=o86VYkfEuC0C42DZ Page No.- 3.22
Overall Equipment Effectiveness (OEE) Practical https://youtu.be/2NSXW5PyOco?si=QECFB8Xi94ejSDOi Page No.- 3.30
Six Sigma Theory https://youtu.be/E0Ww4DG68HY?si=qrh-gnsYaMJYv3EK Page No.- 3.37
Chapter 4
Target costing Mix https://www.youtube.com/live/YN_WIqoe_5A?si=hUIJCIHsfp_DJagI Page No.- 4.7
Life cycle costing- Characteristics & strategies of
Theory https://youtu.be/VXLPXJ4UgEA?si=XWAtjv_d5-FfPSpR Page No.- 4.27
each stage
Throughput Accounting Practical https://youtu.be/5JG_jY13jPw?si=Ym5OfnNXQYab57qW Page No.- 4.35
Chapter 5
1) Internet of Things 2) 3D Printing
3) Robotics 4) Digital Twin
Types of Key tecnologies for Digital 5) Artificial Intelligence 6) Augmented Reality
Theory -
transformation 7) Automation 7) Mobile internet
9) Cloud 10) BlockChain
11) Autonomous Vehicle
Cloud Computing Theory https://youtu.be/J9O20Zt4o6c?si=0CAzr6aXe3qaD3cZ Page No.- 5.6
Hyper Disruptive Business Models Theory Obtain only basic knowledge of models Page No.- 5.29
Chapter 6
CVP Analysis- Sell or Process Further Mix Only Read Page No.- 6.22
Profit Maximisation Model Mix https://youtu.be/eOE-BrIQrSk?si=nWfGFa9kO9bYF2nt Page No.- 6.37
1) Perfect Competition 2) Monopoly
Pricing under different market structure Theory Page No.- 6.38
3) Monopolistic Competition 4) Oligopoly (Predatory Pricing)
Pricing of New Product : Skimming & Penetration Theory https://youtu.be/he_AQuEwFTA?si=eKVf6g7lKV2fhLk- Page No.- 6.45
Pricing of Existing Product: TEV Practical Do Illustration Page No.- 6.51
Pricing Decision in Special Circumstances Theory Only Read Page No.- 6.57
Kano’s Performance attributes Theory https://youtu.be/drtyw08cG3o?si=B3hdUMH-9olFvzF7 Page No.- 6.65
Chapter 7
Non Value Added Activity Practical Only Read Page No.- 7.20

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Sureshot 50+ Marks - More than 200 Actual Exam Questions- Vikalp and Manmohan Gupta
CHAPTERWISE IMPORTANT TOPIC WITH VIDEO
SOLUTIONS AND ICAI SM LINKAGE
Chapters Practical / Theory Concept Bites SM Pg.No.
Pareto Analysis Theory https://youtu.be/UmoPqcgHqoA?si=E0gsIQ2z7WXm04aE Page No.- 7.34
Chapter 8
McKinsey’s 7S Theory https://youtu.be/qMRu4B11G3U?si=GYYPjni9VhS0sJjI Page No.- 8.13
1) Entrepreneurial 2) Line
3) Function 4) Divisional
Organisation Structure Theory Page No.- 8.16
5) Matrix 6) Project
7) Network/ Virtual
Z Score (No need to learn equation as it is always Practical
https://youtu.be/ngGZ3N9_0jQ?si=tsXBdJDxhzLIBO8S Page No.- 8.34
given in question, do learn how to calc X1,X2..)
Argenti’s A Score Practical https://youtu.be/FbHEDtgjHwk?si=fWumrHames5lU_Ta Page No.- 8.39
Chapter 9
ROI vs RI Practical https://youtu.be/zjxmQrQN7Mg?si=HSs3604_3YJH8ePZ Page No.- 9.10
EVA Practical https://youtu.be/m8aAr-BDIMs?si=-xWpXwP-Yl-Wc6jS Page No.- 9.16
Performance Pyramid Theory https://youtu.be/XswENHZxBrI?si=4SuTaOo1BDwwRf6a Page No.- 9.29
Building Block Model Theory https://youtu.be/CdJhzaN-6aU?si=RXJ6aYbpCIWINx4y Page No.- 9.33
Triple Bottom Line Theory https://youtu.be/SZ6GmoqYz78?si=kuyiN8y3Vc2n3wFz Page No.- 9.35
Chapter 10
Value for Money Framework Theory only Read (1 C.S.) Page No.- 10.5
Chapter 11
Types of performance reports Theory only Read (1 C.S.) Page No.- 11.6
Chapter 12
Concept https://youtu.be/tLSqO9Gij8M?si=TyaqADM9MMp7G1LS -
Transfer Pricing
Practical https://youtu.be/gFrIDQfOzDM?si=WydPO9zMvZE-vE0x -

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Sureshot 50+ Marks - More than 200 Actual Exam Questions- Vikalp and Manmohan Gupta
THEORY PART - REPEATED MCQs
Sr No. Questions Answers
Which of the following is part of the 'Soft S' in McKinsey’s 7S framework?
1 a) Strategy b) Systems Skills
c) Structure d) Skills
Which of following statements are incorrect in regard to Argenti's A score model.
1. Mistakes and defects not inter-related.
2 Both 1 and 2 only
2. Threshold is Kept at score of 45.
3. There are three underlying groups (dimensions) i.e., Mistakes, Defects and Symptoms of failure.
3 The Ease of Value for money Framework Economy, Efficiency, Effectivenss
4 2 extra Es in Value for money (VFM)? Equity, Ethics
5 Maximise ratio of input of resources & output of goods, services or other material. efficiency
Which one are not challenging assessment of effectiveness
6 Answer is in from other 3 option
a) Define what constitute litter
Case Study: A company has four products (S, P, A, N) with different tag lines:
Product S: Why Pay more When you Payless
7 Product P: Conservation, Preservation & Sustain
Product A: You get what you pay for
Product N: Safety First
Why Pay more When you Payless
8 a) Which one cost leadership strategy?
(Product S)
9 b) Which one is product differentiation strategy? You get what you pay for (Product A)
Conservation, Preservation & Sustain
10 c) Which product emphasizes a differentiation strategy based on environmental sustainability?
(Product P)
11 d) Which product emphasizes safety as its primary differentiating factor? Safety First (Product N)
12 Which of the following is not a reason to use the concept of Learning Curve? Introducing new technology
Sales Rs. 4,00,000; Variable Cost Rs. 3,00,000; Fixed Cost Rs. 75,000; Investments Rs. 1,50,000 and desired 20%
13 -5000
on investments. What is residual income?
14 Strategic Control means Read from SM
15 Which Price Strategy involve setting a low initial price to quickly gain large market share? Penetration pricing
Premium Price Strategy is when
16 a) Price are high & demand elastic b) price are high & demand inelastic -
c) price are low & demand elastic
17 Pricing strategy of combining package with manufacturing coupon or rebate? Mixed Bundling
Case Study: A service company, ServicePro Inc., has implemented the Building Block Model to enhance its
18
performance measurement system. The model focuses on dimensions, standards, and rewards.
a) Which of the following is a determinant under the Building Block Model?
19 1) Flexibility 2) Equity Flexibility
3) Clear communication 4) Controllability
b) In the Building Block Model, what characteristic should performance measures possess to be considered They should be challenging for all parts
20
equitable? of the business equally
c) ServicePro Inc. sets a target to achieve four product innovations per year rather than simply "innovate". This target
21 Ownership
exemplifies which characteristic of standards in the Building Block Model?
It aligns performance measures with
22 d) What is a key benefit of using the Building Block Model in performance measurement?
strategic goals and employee motivation
23 Turnover increase is which dimension of building block model? Financial Performance
the process of transforming an expensive
or highly sophisticated product, offering,
24 Disruptive innovation refers to or service into one that is simpler, more
affordable, and accessible to a broader
population.
Low end disruption and new market
25 Disruptive innovation can be classified as
disruption
help startup by developing its strong idea
into a viable product
26 Incubators means in a company ______
It work on a fee-basis as opposed to
taking an equity stake in the startup.
27 Rework cost can classified as Internal failure cost
28 Type of report Integrates scope, schedule, and cost performance using earned value management techniques Earned Value Report
Type of report that Captures the state of the activity at a particular point or project at a particular point in its life
29 Status Report
cycle.
Case Study: Coal... Ltd. is a leading company involved in the mining and production of coal. The company operates
30
in a highly regulated industry with significant capital investments required for exploration and mining operations.
31 a) Identify the level of threat of new entrants. Low
32 b) Identify level of threat of substitute if allocation of new coal block to steel, thermal & other industries? High
33 c) Analyze the intensity of competitive rivalry within the coal mining industry. Very High
34 d) Assess the bargaining power of suppliers in the coal mining industry. Low

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Sureshot 50+ Marks - More than 200 Actual Exam Questions- Vikalp and Manmohan Gupta
THEORY PART - REPEATED MCQs
Sr No. Questions Answers
Case Study: Match the following on Porter's five forces:
a) Threat of New Entrants
a) The industry requires significant capital investments for new firms to enter.
b) Bargaining Power of Buyers
b) Large volume purchases by power plants give them significant negotiating power
35 c) Threat of Substitutes
c) The presence of alternative energy sources like natural gas and renewables.
d) Competitive Rivalry
d) Numerous coal mining companies compete aggressively for market share.
e) Bargaining Power of Suppliers
e) Standardized inputs and multiple suppliers reduce supplier leverage.
Case study related to Optimum price level (SM page. 6.37)
Demand for Different price level given. Direct material, Direct labour, Variable cost, Fixed Cost data also given.
36 Q. Calculate Price at which profit is maximum
Q. If company sells at lowest possible price, DL cost will come down by 10% because of learning curve effect.
Calculate revised profit.
Which of these doesn't affect market share variance
37 Learning curve effect
a) sales efforts, b) successful marketing strategy, c) learning curve effect.
Case study : Reverse Calculation of OEE
OEE % & Availability %, data related to working normal working time, break time, good units, total units etc were
given.
38
Q Calculate Performance %
Q Calculate Quality %
Q Calculate ideal cycle time
In a manufacturing environment, if a machine has an Availability of 90%, a Performance of 85%, and a Quality of
39 72.68%
95%, what is the Overall Equipment Effectiveness (OEE)?
40 A company reduced the price of its product to throw away the competitor from market. This pricing strategy is called? Predatory Pricing
A business model where the core
product is free for a large number of
41 What describes the "Free Model" in disruptive business models?
users, but premium features are sold to a
smaller subset.
Find out correct sentence about freemium -
a) basic version is free & upgraded version is at premium, b) freemiums are free forever for basic versions &
42 A)
customers cant get full product
c) offers free version for limited time.
43 Business model in which the company applies lock system limiting customers options. Service ecosystem model
An e-commerce platform charging a
44 Which of the following is an example of the "Subscription Model"?
monthly fee for exclusive access to deals
Razorblade business model - also known
45 A company sold Printers cheaply to build demand for high-margin printer cartridges. Which model is followed by co?
for cross subsidization
46 What is the primary characteristic of a hyper-competitive market? High level of rivalry among the players
Which of the following is a strategic response to hyper-competition according to D’Aveni’s 7S
47 Shifting the rules of the market
framework?
1)Customer, 2)Financial, 3) Internal, 4)
48 Order of ADAPTED Balanced scorecard?
Innovation learning
49 Which financial performance measure arguably has strong correlation with shareholders wealth? Economic value addition
Case Study: Two divisions (Division A and Division B) have the following financial data:
Division A:
Operating Profit: ₹5,00,000
Capital Employed: ₹20,00,000
50
Division B:
Operating Profit: ₹4,00,000
Capital Employed: ₹16,00,000
Company's Cost of Capital (CoC): 10%
51 a) Calculate the ROI for Division A and Division B. Division A: 25%, Division B: 25%
Division A: ₹3,00,000, Division B:
52 b) Calculate the RI for Division A and Division B.
₹2,40,000
ROI is a relative measure, and RI is an
53 c) Identify the correct statement about RI and ROI.
absolute measure.
Division A manager will reject the
project if its ROI < Division A's ROI, but
54 d) Given the current ROI of both divisions and the CoC, identify the correct statement (from an ROI perspective).
the project should be accepted if its ROI
> Company's ROI.
55 Which coefficient has more weight in Z score? X3 (EBIT/ Total Assets)
56 Zscore is helpful in predicting what? Bankruptcy
A Co was heavy engineering company involved in setting up & installing P&M having more than 350 offices in India
57 Divisional Structure
with 2000 direct employees. From this, Identify the org structure of the company?
58 Formula to calculate no of relations & cross relations. n(n-1)/2 & n(n-1)
Envirnmental, Social & Corporate
59 ESG full form
governance

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Sureshot 50+ Marks - More than 200 Actual Exam Questions- Vikalp and Manmohan Gupta
THEORY PART - REPEATED MCQs
Sr No. Questions Answers
Multi-national organizations try to maximize profits by using transfer pricing as a tool to reduce the tax impact on
earnings. Where, the supplying division is in a country with _____ tax rate, the transfer price will be set lower in - Higher tax rate & Lower tax rate
60
order to reflect higher earnings (resulting from lower purchase cost) in the purchasing division, which has a ____ tax respectively
rate.
61 Pareto principle based upon the law of Diminishing returns
62 Question related to types of E Commerce Model -
social, technological, economic,
63 Full Form of STEEPLE environmental, political, legal, and
ethical
Strategic Measurement Analysis and
64 Full Form of SMART.
Reporting Technique
65 Full form of SBU. Strategic Business Unit
In order to achieve corporate vision, the
initial focus is on the attainment of CSFs
66 Level 2 in performance pyramid shows what??
related to market and finance at the SBU
or division level.
organisation defines how long-term
67 Objective of Level 1? success and competitive advantage will
be attained.
68 Which is superior against other in performance pyramid & Balanced scorecard. Performance Pyramid
Performance pyramid consider as only
shareholder and customer whereas
69 Limitation as compared to performance prism Performance Prism Model considers the
expectations and contributions of all the
stakeholders as core
reduce inventory holding costs and
70 Aim of JIT
increase inventory turnover
71 What are primary objective of Just-in-Time (JIT) inventory management? Minimizing inventory levels
72 Which of the following best describes a key benefit of implementing Just-in-Time (JIT) systems? Reduced waste and improved efficiency
reducing management’s control and the
73 Limitation of Network or Virtual Organisation
reliability of partners
74 Meaning of Matrix organisation Read from SM
shed light on a company's ESG activities
75 Disclosure in ESR reporting while improving investor transparency
and inspiring peerorganizations
Deciding the selling price of the new product in market is the most difficult decision. While doing the variance
analysis, the manager of the sales and marketing department of the company is interested to know which of the
following is not responsible for Sales Price Variance –
76 a) Higher discounts given to customers in order to encourage bulk purchases b) Failure to satisfy demand due to B)
production difficulties
c) Better sales price realization d) Market conditions or economic conditions forcing changes in
prices across the industry
77 Which of the following does Kaizen improvement process not focus on? Improvement by innovation
Case Study: XYZ Ltd- South Korean Branch and Brazilian Branch, procuring through internal transfers 250000
78 units @35000, Variable cost is 30000, an external party offer is available to Brazilian branch, now company has
asked South korean branch (transferor) to look into the matter.
79 Q1 Calculate local consumption tax (tax rate, forex rate given) -
80 Q2 Net P/L to South Korean Subsidiary -
81 Q3 Net Benefit/ Deficit to company -
82 Identification of Preventive or Appraisal cost -
83 Identify business model - when two people interact and buy. Ecommerce
technology not adapted due to
84 Question related to Case Study: Why company failed? management style or due to cost
leadership thus not invested in tech
85 Radical one off changes to inborne ops and process Process Re-engineering
Identification of Company Model: The company will charge them a fee to upgrade to a more comprehensive offer. To
86 Freemium
gain access to additional features or an upgraded version, users must pay a set fee to the company.
Managing cost (reduce cost) & alligning
87 Strategic cost Management help in__________
them to strategies
88 Identifying On-Demand Model. Swiggy & Zomato
By charging a premium for instant
89 How does the "On Demand Model" disrupt traditional business models?
access to products and services.
A Planning Variance simply compares a
revised standard to the original standard
90 Difference Between Planning & Operational Variance whereas Operational Variance simply
compares the actual results against the
revised amount

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Sureshot 50+ Marks - More than 200 Actual Exam Questions- Vikalp and Manmohan Gupta
THEORY PART - REPEATED MCQs
Sr No. Questions Answers
Case Study: XYZ Ltd. operates in the consumer electronics industry and has adopted two distinct competitive
strategies for its product lines: cost leadership and product differentiation. For its basic line of smartphones, XYZ
91
Ltd. focuses on cost leadership, aiming to become the lowest-cost producer in the industry. For its premium line of
smartphones, XYZ Ltd. emphasizes product differentiation by offering unique features and superior quality.
92 a) Which strategy is XYZ Ltd. using for its basic line of smartphones? Cost Leadership
To become the lowest-cost producer in
93 b) What is the primary objective of a cost leadership strategy?
the industry
94 c) Which of the following features is most likely associated with XYZ Ltd.'s premium line of smartphones? Unique features and superior quality
Unique product attributes that create
95 d) What is a key characteristic of a product differentiation strategy?
value for customers
Competitors imitating cost reduction
96 e) Which of the following is a potential risk of the cost leadership strategy for XYZ Ltd.?
strategies
f) In the context of XYZ Ltd., what could be a potential benefit of implementing a product differentiation Increased brand loyalty and customer
97
strategy for its premium line? retention
g) If XYZ Ltd. wants to maintain its cost leadership strategy, which of the following actions should it Reducing overhead costs and improving
98
prioritize? operational efficiency
h) What could be a significant challenge for XYZ Ltd. when pursuing a product differentiation strategy in a highly Keeping up with frequent technological
99
competitive market? advancements
Case Study: ABC Ltd. is a global manufacturing company looking to expand its operations in a new international
market.
The company's strategic team conducts a STEEPLE analysis to understand the various external factors that might
impact their decision. The analysis covers:
Social Factors: Increasing demand for eco-friendly products among consumers.
100 Technological Factors: Rapid advancements in manufacturing technology.
Economic Factors: Fluctuating exchange rates and inflation rates in the target market.
Environmental Factors: Stricter environmental regulations and sustainability initiatives.
Political Factors: Political stability and government policies favoring foreign investments.
Legal Factors: Compliance with international trade laws and local labor laws.
Ethical Factors: Corporate social responsibility and ethical labor practices.
Increasing demand for eco-friendly
101 a) Which of the following is an example of a Social factor in the STEEPLE analysis for ABC Ltd?
products
b) How might rapid advancements in manufacturing technology, a Technological factor, impact ABC Ltd.'s decision By reducing production costs and
102
to expand? improving efficiency
c) What type of factor is "stricter environmental regulations" in the context of the STEEPLE analysis for
103 Environmental
ABC Ltd.?
d) Which factor in the STEEPLE analysis would involve assessing the compliance with international trade laws and
104 Legal
local labor laws?
Case Study: DEF Ltd. is a company operating in the consumer electronics industry. The strategic management team
at DEF Ltd. uses Porter’s Five Forces Model to analyze the competitive environment and to develop strategies for
maintaining its market position. The analysis covers:
Threat of New Entrants: The industry has high barriers to entry due to significant capital investment
requirements and strong brand loyalty among consumers.
Bargaining Power of Suppliers: There are few suppliers of critical components, giving suppliers
105 considerable power over prices.
Bargaining Power of Buyers: Buyers have a moderate amount of power due to the availability of
alternative brands and the increasing access to market information.
Threat of Substitute Products: The threat is high due to rapid technological advancements and the
availability of alternative electronic products.
Industry Rivalry: Competition is intense among existing players, with aggressive marketing and
frequent product innovations.
a) Which of the following factors is considered under the "Threat of New Entrants" in Porter’s Five Significant capital investment
106
Forces Model? requirements
It puts upward pressure on production
107 b) What effect does the high bargaining power of suppliers have on DEF Ltd.'s operations?
costs
Because of rapid technological
108 c) Why is the threat of substitute products considered high for DEF Ltd.?
advancements
d) What is the primary reason for intense industry rivalry in the consumer electronics market as faced Aggressive marketing and frequent
109
by DEF Ltd.? product innovations
It forces DEF Ltd. to focus on customer
110 e) How does moderate bargaining power of buyers impact DEF Ltd.?
satisfaction and competitive pricing
Enhancing brand loyalty through
111 f) Which of the strategies can DEF Ltd. use to mitigate the threat of new entrants?
marketing
Case Study: A service level agreement (SLA) has been established between XYZ Company and its client. The
agreement includes a gain-sharing arrangement based on cost savings achieved over three years. The cost savings
realized in each year are as follows:
112
Year 1: ₹1,00,000
Year 2: ₹1,50,000
Year 3: ₹2,00,000
113 a) What is the total cost savings achieved over the three years? 450000

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Sureshot 50+ Marks - More than 200 Actual Exam Questions- Vikalp and Manmohan Gupta
THEORY PART - REPEATED MCQs
Sr No. Questions Answers
114 b) If the gain-sharing ratio is 50:50, how much does XYZ Company receive from the total savings? 225000
c) For Year 2, with a gain-sharing ratio of 40:60 between Client & XYZ, what is the client’s share of the cost
115 60000
savings?
d) Assuming the total cost savings in Year 3 are shared in a 30:70 ratio, how much does XYZ Company
116 140000
receive?
Case Study: Raya Health Care Limited, a leading healthcare service provider in Mumbai, is outsourcing its CT scan
and MRI services to Livlife, an international chain of diagnostic centres. Livlife promises to provide radiologist
reports within 24 hours. The agreement includes:
Cost savings generated in the first year will be retained by Livlife.
Cost savings generated in the second and third years will be shared between Raya and Livlife at a ratio of 30%:70%.
117
Cost savings generated in the fourth year will be passed to Raya.
Additional Data:
The total cost savings generated in each of the first four years are as follows:
Year 1: ₹1,00,000 Year 2: ₹2,00,000
Year 3: ₹3,00,000 Year 4: ₹4,00,000
a) How much cost savings is attributable to Company 1 (Raya Health Care Limited) in the second and third years
118 ₹ 1,50,000
combined?
119 b) How much cost savings is attributable to Company 2 (Livlife) in the second and third years combined? ₹ 3,50,000
120 c) What is the total amount of cost savings generated in the fourth year? ₹ 4,00,000
121 d) What is the cumulative amount of cost savings retained by Livlife over the four years? ₹ 4,50,000
Case Study: ABS Company:
Total calls: 12,000 95/20 for ABS: This likely means that
Calls answered within the threshold limit: 11,500 95% of the calls should be answered
Abandoned calls: 300 within 20 seconds.
122
RBS Company: 90/15 for RBS: This likely means that
Total calls: 9,500 90% of the calls should be answered
Calls answered within the threshold limit: 8,000 within 15 seconds.
Abandoned calls: 250
It is Activity response time specified in
agreement.
123 a) What is SLA threshold & what is threshold time? Threshold Time:
For ABS, the threshold is 20 seconds.
For RBS, the threshold is 15 seconds.
124 b) What is the SLA threshold in percentage for ABS and RBS? 95% and 90%
ABS: 98.29%
125 c) Compute the Service Level (SL)?
RBS: 86.49%
Which of the following is NOT a component of the Cost of Quality (COQ)?
126 a) Prevention Costs b) Appraisal Costs Market Share Cost
c) External Failure Costs d) Market Share Costs
127 Who popularized the concept of the Cost of Quality in his book "Quality Is Free"? Philip B. Crosby
128 Which of the following costs is associated with the prevention of poor quality in products and services? Prevention Cost
What type of cost is associated with defects that are found before the customer receives the product or
129 Internal Failure Costs
service?
Case Study: JK Ltd. produces and sells a single product. Presently, the company has an annual external failure cost
of ₹440,000 and an internal failure cost of ₹850,000. The company considers implementing a new quality control
130 system, which would result in an annual prevention cost of ₹560,000 and an appraisal cost of ₹70,000. The new
system is expected to reduce external and internal failure costs by ₹100,000 and ₹410,000 respectively. All other
activities and costs will remain unchanged.
131 a) What will be the total cost of quality (COQ) after implementing the new quality control system? ₹ 15,90,000
132 b) Based on the new system, should JK Ltd. implement the new quality control system? Yes, it results in a cost saving.
Case Study: ABC Ltd. implemented Just-in-Time (JIT) inventory management. The following changes were
observed post implementation:
Reduction in inventory holding costs by 30%
133
Increase in on-time delivery from 85% to 95%
Decrease in production lead time by 40%
Improvement in product quality, reducing defects by 20%
134 a) What was the initial inventory holding cost if it was reduced by ₹60,000 after a 30% reduction? ₹ 2,00,000
135 b) What is the new on-time delivery rate after JIT implementation? 85%
136 c) If the initial production lead time was 10 days, what is the new lead time after a 40% reduction? 6 days
137 d) If the defect rate was initially 5%, what is the new defect rate after a 20% improvement? 4%
Case Study: DEF Manufacturing has decided to implement Just-in-Time (JIT) inventory management to streamline
their production process and reduce costs. Before implementing JIT, the company held an average inventory worth
₹500,000. Post-implementation, several changes were observed:
138 Inventory holding costs reduced by 25%
Production lead time decreased from 12 days to 7 days
On-time delivery rate improved from 80% to 92%
The defect rate decreased from 6% to 3%
139 a) What is the amount of reduction in inventory holding costs post-JIT implementation? ₹ 1,25,000
140 b) What is the new inventory holding cost after the reduction? ₹ 3,75,000

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THEORY PART - REPEATED MCQs
Sr No. Questions Answers
141 c) By how many days did the production lead time decrease after implementing JIT? 5 days
142 d) What is the percentage improvement in the on-time delivery rate? 12%
143 e) What is the percentage decrease in the defect rate? 3%
A system that records public
transactions, or blocks, in multiple
144 Which of the following best describes blockchain technology?
records known as chains, linked by peer-
to-peer connections.
Sigma Cast & Pig Moulder (SC&PM) Limited has the following financial details:
Working Capital: ₹4,200 crores
Total Assets: ₹3,500 crores
Retained Earnings: ₹800 crores
145 EBIT: ₹6,500 crores 11.097
Market Value of Equity: ₹7,000 crores
Total Liabilities: ₹5,000 crores
Sales: ₹8,300 crores
Calculate the Altman Z-Score for SC&PM Limited.(manuacturing)
146 How many main dimensions does Argenti's A-Score model include? Three
147 In the Triple Bottom Line framework, which aspect would NOT be reported under the "People" bottom line? Net income
The number of inpatient hospital deaths decreased 8% from 776 in 2022 to 715 in 2023. This metric falls under
148 Social (People)
which bottom line?
Case Study: A company, EcoMinds Ltd., has undertaken several initiatives towards sustainability. The company's
149
operations impact the environment and society and are focused on long-term economic viability.
Implementing a recycling program for
150 a) Which of the following is an example of the "Planet" bottom line in the Triple Bottom Line framework?
waste materials
b) Which metric would be most relevant to the "People" bottom line in the Triple Bottom Line framework?
151 a) Net profit margin b) Employee turnover rate Employee turnover rate
c) Energy consumption d) Return on investment (ROI)
c) EcoMinds Ltd. reported the following initiatives: constructing a solar-powered warehouse and reducing plastic
152 Planet
usage in packaging. Under which bottom line would these initiatives be classified?
Measuring a company's performance in
153 d) What is the primary goal of the Triple Bottom Line framework? financial, social, and environmental
terms
Case Study: Water Utilities Services (WUS) is involved in water distribution and water bottle operations. The
company's performance is evaluated using Economic Value Added (EVA) and the Return on Capital Employed
(ROCE) set by the regulator at 7.00%.
Data Provided:
Revenue from Water Distribution Operation (WDO): ₹555 Crore
154 Revenue from Water Bottle Operation (WBO): ₹186 Crore
Operating Cost for WDO: ₹460 Crore
Operating Cost for WBO: ₹119 Crore
Finance Charges: ₹46 Crore
Tax Rate: 30%
Capital Employed as per Regulator for WDO: ₹1,558 Crore
₹5.98 Crore
{EVA=NOPAT−(WACC×Capital
155 a) Calculate the Economic Value Added (EVA) for WUS
Employed)
NOPAT=Operating Profit−Tax}
156 b) Assess whether WUS complies with its acceptable ROCE level set by the regulator No, ROCE is below 7.00%
Increase NOPAT or reduce capital
157 c) Identify a method to improve WUS’s profitability.
employed
Case Study: Match the following:
a) Strengths and Weaknesses
a) Task Environemnt in context of capability i.e., resources, core competences
b) Vision and Values
158 b) Culture, beliefs, and assumptions of the organisation
c) Opportunities and Threats
c) Environment in context of competitors, markets,regulations,
d) Mission and Objectives
d) Stakeholders’ influence and expectations
159 Performance pyramid called as SMART -
160 Identify level of Bargaining price of buyer & Supplier -
ROI: Suborganisation & relative
161 -
RI: absolute
DLT (Distributed ledger technology) is a decentralized database with many members. The digital ledger's data is
162 -
extremely secure
163 MCQ related to " Which is not covered under Hyper Disruptive Model" (SM page no. 5.29) -
164 IT/IM Strategy not implemented due to which reason? -

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PRACTICAL PART - REPEATED MCQs - DIRECTLY FROM SM
Question No - ICAI SM
Sr.No. Chapter Topic Name Page No
Referenced
1 Modern Business Environment Gain Sharing Arrangement- Cost Savings Case Scenario 2.33
2 Lean System and Innovation JIT Illustration 1 3.14
3 Lean System and Innovation JIT TYK 2 3.50
4 Lean System and Innovation Overall Equipment Effectiveness (OEE) TYK 5 3.52
5 Specialist Cost Management Techniques Life Cycle Costing TYK 3 4.59
6 Specialist Cost Management Techniques Theory of Constraints TYK 6 4.61
7 Specialist Cost Management Techniques Environmental Management Techniques TYK 8 4.63
8 Strategic Revenue Management Profit Maximisation Example 6.37
9 Strategic Revenue Management True Economic Value (TEV) Example 6.51
Read theory- will be able to
10 Strategic Revenue Management Kano's Performance Attributes 6.65
manage practical sums
11 Strategic Revenue Management Revenue Maximisation TYK11 6.85
12 Strategic Profit Management MCE TYK 1 7.42
13 Strategic Profit Management Pareto Analysis TYK 7 7.47
Introduction to Strategic Performance Read theory- will be able to
14 Elements of 7S 8.14
Management manage practical sums
Introduction to Strategic Performance
15 No. of Relations Illustration 8.15
Management
Introduction to Strategic Performance Read theory- will be able to
16 Altman Z Score 8.35
Management manage practical sums
Introduction to Strategic Performance Read theory- will be able to
17 Argenti A Score 8.40
Management manage practical sums
Strategic Performance Measures in Private Performance Pyramid- Building Block
18 Illustration 6 9.31
Sector Model
19 Divisional Transfer Pricing Different Capacity Levels Example 12.16
20 Divisional Transfer Pricing International Transfer Pricing MCQ from 3rd Para 12.25
21 Divisional Transfer Pricing International Transfer Pricing TYK 8 12.46
22 Standard Costing Interpretation of Variances - 13.25
Labour Rate and Efficiency Variance
23 Standard Costing - 13.26
Interpretation
24 Standard Costing Variance Interpretation Illustration 6 13.28
25 Standard Costing Variance Interpretation MCQ 11 13.54
26 Standard Costing Variance Interpretation TYK 9 13.61
27 Standard Costing Variance Interpretation TYK 10 13.61
28 Specialist Cost Management Techniques Throughput Accounting Illustration 5 4.35
Introduction to Strategic Cost
29 Primary and Secondary Activities MCQ 4 1.62
Management
30 Modern Business Environment External Failure Costs Theory External Failure Costs Theory 2.6
31 Lean System and Innovation OEE Illustration 2 3.30
32 Lean System and Innovation Kaizen MCQ 3 3.48
Management of Cost Strategically for Read theory- will be able to
33 Hyper Competition 5.12
Emerging Business Models manage practical sums
Management of Cost Strategically for Read theory- will be able to
34 Disruption 5.13
Emerging Business Models manage practical sums
Management of Cost Strategically for Read theory- will be able to
35 Business Models 5.28
Emerging Business Models manage practical sums
Management of Cost Strategically for Read theory- will be able to
36 Digital Platform 5.31
Emerging Business Models manage practical sums
Strategic Performance Measures in Private
37 EVA TYK 4 9.44
Sector
38 Divisional Transfer Pricing International Transfer Pricing Example 12.25
39 Standard Costing Learning Curve Impact on Variances Illustration 3 13.10

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Repeated Practical Questions (Other than SM)
MTP Sept 22

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CSD Compilation EVA

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Chapter 6 RTP May21

Q. asked in SPOM Q1. Marginal Cost Per Batch
Q2. Op mum Quan ty(Q) and Op mum Price (P)
Q3. Total Profit
Q.

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Chapter 13 Sales Variance (May22Exam)

Q. asked in SPOM Q.1 Budgeted Sales
Q.2 Budgeted Magin (Budgeted Profit)
Q.3 Actual Magin (Actual Profit)
Q.4 best performer zone

Q.

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