1. NCRD’s Sterling Institute of Management Studies,
Nerul, Navi Mumbai
TERM END EXAMINATION MMS SEM III Nov/ Dec
Sub: - Marketing Finance
Date:
18/11/2011
Time: 11am to 2 pm
Day: Friday
Marks: 30
Roll No:
--------------------------------------------------------------------------------------------------------------Instructions: Section I is compulsory. (10 Marks)
Section II - Attempt any Two from the rest. (10 Marks Each)
Section I
Q.1
1. Discuss the Components of Credit Policy of a firm. Write down credit policy of imaginary firm. (5)
2. A choice is to be made between two competing projects, which require an equal investment of
Rs.50000 each and are expected to generate net cash flows as under:
(Amount in Rs.)
Year
Project I
Project II
1
25000
10000
2
15000
12000
3
10000
18000
4
nil
25000
5
12000
8000
6
6000
4000
The cost of capital is 10%. Using NPV method, recommend which project is preferred.
OR
Q.1 Samsung India Ltd. produces three products . The following expenses incurred on Marketing are sought to
be traced to the product using the indicated bases.
Sr.No.
1
2
3
4
6
7
8
9
Expenses
Salesmen's Salary
Sales commission
Sales office expenses
Advertising
Packing & Labeling
Transportation expenses
Ware house expenses
Credit collection expenses
The following data are also available:
Amount
20,000
12,000
4,192
50,000
6,000
8,000
2,000
2,592
Basis
Direct Charges
Number of sales man
Number of Orders
Percentage of advertising
Sales turnover
Sales turnover
Sales turnover
Number of orders

2. Particulars
i No of Salesmen
ii Units sold
iii No. of orders
iv Percentage of advertising
v Sales turnover
Total
20
20,800
3,200
Washing
machine
8
6,800
1400
Refrigerator
10
8,000
1600
T.V
2
6,000
200
100%
4,00,000
30%
116,000
40%
160,000
30%
124,000
Calculate :
1. Marketing cost per unit sold for each three products.
2. Marketing cost as percentage of sales turnover.
Section II
Q.2 Answer any two:
a) “Sales revenue is an integral element of cost” Explain
b) Discuss Pricing of New product under ROI concept with its Advantages Disadvantages.
c) Why it is essential to manage inventory? Why and when do Organizations hold Finished Goods
Inventories?
d) “It is very important the companies should have effective control system with regards to
receivables “comment.
Q.3
a) What are advantages and disadvantages of Tender Procedure?
b) What are the Advantage & Disadvantages of Private & Public Warehouse?
Q.4
a) Define marketing cost analysis .What are the uses of marketing cost analysis?
b) Define Government Price Control. What are the effects of Government Price Control in
business?
Q.5 Write short note on (Any Two)
a) Cost of Market research
b) Life Cycle Costing
c) Export Tax Credit
d) Turnkey Project