Final Examination
[ December ¯ 2011 ]
FINAL EXAMINATION
(REVISED SYLLABUS - 2008)
GROUP - III
Paper-13 : MANAGEMENT ACCOUNTING- STRATEGIC
MANAGEMENT
Section I : Strategic Management
Q. 1. Differentiate between :
(a) Plan and policy
(b) Programmed and contingency strategy
(c) Effects of learning and experience curve
(d) Market and marketing research
Answer 1. (a)
Plan
A plan is directed towards achievement of specific objectives over a specified period of times.
Policy
A policy is a guide which delimits action but does not specify time. It is open ended, rather timeless.
Thus, “a policy is not a plan, but guiding cannon of interest”. Policies are planned expressions or understandings towards the range of behaviour, which guide or channel thinking and action in decision making and limit for discretionary action by individuals responsible for implementing overall plans.
Answer 1. (b)
Programmed Strategy
(i) A programmed strategy is a strategy which is planned in such a detailed and integrated way that it is difficult to change it, once it has begun to be implemented.
Contingency Strategy
A contingency strategy requires the planner to choose the preferred strategy, given the best estimates of conditions and other strategic choices. But it is flexible enough to allow for shifts in the thrust of the plan, when conditions warrant it. (ii) In effect, programmed strategies emanate from first-generation planning.
Second generation planning leads to contingency strategy formation.
(iii) Programmed planning is suitable for stable environment with people who prefer welldefined roles.
The contingency strategy is suitable for unstable environment with people who prefer variety and stimulation. 2
[ December ¯ 2011 ]
Revisionary Test Paper (Revised Syllabus-2008)
Answer 1. (c)
Effects of Learning Curve
(i) Learning effects typically refer in a narrow way to labour costs alone, as they reflect short term cost reductions
FINAL EXAMINATION
(REVISED SYLLABUS - 2008)
GROUP - III
Paper-13 : MANAGEMENT ACCOUNTING- STRATEGIC
MANAGEMENT
Section I : Strategic Management
Q. 1. Differentiate between :
(a) Plan and policy
(b) Programmed and contingency strategy
(c) Effects of learning and experience curve
(d) Market and marketing research
Answer 1. (a)
Plan
A plan is directed towards achievement of specific objectives over a specified period of times.
Policy
A policy is a guide which delimits action but does not specify time. It is open ended, rather timeless.
Thus, “a policy is not a plan, but guiding cannon of interest”. Policies are planned expressions or understandings towards the range of behaviour, which guide or channel thinking and action in decision making and limit for discretionary action by individuals responsible for implementing overall plans.
Answer 1. (b)
Programmed Strategy
(i) A programmed strategy is a strategy which is planned in such a detailed and integrated way that it is difficult to change it, once it has begun to be implemented.
Contingency Strategy
A contingency strategy requires the planner to choose the preferred strategy, given the best estimates of conditions and other strategic choices. But it is flexible enough to allow for shifts in the thrust of the plan, when conditions warrant it. (ii) In effect, programmed strategies emanate from first-generation planning.
Second generation planning leads to contingency strategy formation.
(iii) Programmed planning is suitable for stable environment with people who prefer welldefined roles.
The contingency strategy is suitable for unstable environment with people who prefer variety and stimulation. 2
[ December ¯ 2011 ]
Revisionary Test Paper (Revised Syllabus-2008)
Answer 1. (c)
Effects of Learning Curve
(i) Learning effects typically refer in a narrow way to labour costs alone, as they reflect short term cost reductions