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Business Analytics

Jun 2026 Examination

 

 

 

Q1. A national retail chain, FreshStyles, is facing declining sales and customer complaints about product availability. The management suspects that the underlying issue stems from inconsistencies in their sales and inventory data collected from multiple branches. Their current datasets contain missing values, duplicates, and inconsistent formatting in date and product codes. Despite using Excel for analysis, the results remain inconclusive and are met with skepticism by stakeholders. The company’s analytics team has been tasked with resolving these data issues to enable trustworthy business insights and inform better inventory and sales strategies.As the lead data analyst for FreshStyles, apply appropriate data cleansing techniques (including missing value treatment, duplicate removal, and format standardization) to this real- world dataset. Describe the sequential steps you would take and explain how your approach ensures data reliability and supports more effective business decision- making? (10 Marks)

Ans 1.

Introduction

FreshStyles which is a nationwide retail chain, currently faces falling sales and increasing complaints about product availability. The root of the problem appears to have to do with poor data quality, resulting from multiple branches, where data sets contain missing values as well as duplicate data and different formats for product codes and dates. These inconsistencies render the analysis inconclusive, even using applications such as Excel which has led to low the confidence of stakeholders. As the lead data analyst your primary goal is to implement a structured data cleansing method to turn this data

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Q2(A). A manufacturing business has recently implemented a probability distribution analysis to better understand and reduce process defects. The operation team is considering whether to fit the data to a Poisson (discrete, PMF-based) or an Exponential (continuous, PDF-based) distribution. Corporate leadership is concerned about the accuracy and effectiveness of using each approach to drive quality improvement initiatives and continuous adaptation.Critically evaluate the merits and drawbacks of modeling defect data using Poisson versus Exponential distributions. Assess how the choice between the two would impact quality assurance, predictive accuracy, and the company’s adaptability to dynamic production environments, justifying your position. (5 Marks)

Ans 2a.

Introduction

A company in the manufacturing industry is employing probability distributions for analyzing the quality of its products and identify defects. Making the right choice between Poisson as well as Exponential distributions is essential because it has a direct impact on how the defects are perceived, forecasted and managed. The choice should be in line with what the nature of data is and operating realities.

Concept and Application

Practically, choosing the proper distribution isn’t only an option for statistical reasons, but rather a decision that is strategic

 

Q2(B). A consumer goods company deploys a simple linear regression model to predict monthly sales from advertising spend, yielding an R-squared value of 0.82. However, regional marketing managers note that in some months, major events (such as festivals and supply chain disruptions) may cause large, unpredictable deviations in sales that the regression model does not explain. The executive team must decide how much to trust the model outputs for future campaign planning, and whether to introduce more explanatory variables or develop alternative analytics approaches.Critique the company’s reliance on the current regression model for campaign planning in light of the marketing managers’ observations. How should the executive team weigh the strong R-squared value against external factors, and what improvements or complementary analyses would you recommend to enhance decision-making robustness? (5 Marks)

Ans 2b.

Introduction

The regression model of the company provides a robust R-squared figure of 0.82 which indicates a positive connection between the amount of advertising spent and sales. But in reality, factors like festivals or disruptions produce variations that the model cannot explain. This is why it’s not advisable to rely entirely on models for deliberation.

Concept and Application

In terms of analytics and data analysis, a very high R-squared does not ensure total accuracy. Modelling must be assessed non only on a statistical basis, but on the basis of their real-world application

 

Cost and Management Accounting

Jun 2026 Examination

 

 

Q1. A home appliance manufacturing company is preparing a cost sheet to analyze the production cost of its newly launched electric kettles. During the month of April 2026, the company produced 5,000 units. The following cost information is available: Direct Materials Rs.3,00,000; Direct Labour Rs.2,00,000; Direct Expenses Rs.50,000; Factory Rent Rs.60,000; Factory Power and Fuel Rs.40,000; Office and Administrative Expenses Rs.70,000; Selling and Distribution Expenses Rs.80,000. The company desires a profit of 20% on Cost. Required: a) Prepare a Cost Sheet showing Prime Cost, Factory Cost, Cost of Production, Total Cost (Cost of Sales). b) Calculate the Selling Price per Unit if profit is 20% on total cost. (10 Marks)

Ans 1.

Introduction

A cost sheet is a structured statement that classifies and accumulates all costs incurred during the production and sale of a product. It helps management understand cost behavior at each stage of the production cycle and provides the basis for pricing decisions. For the electric kettle manufacturing company, preparing a cost sheet for April 2026 will reveal how resources are consumed across production, administration, and distribution, and will support the setting of a selling price that ensures the desired profit level is achieved

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Q2 (A). A fast-growing electric scooter company has recently expanded production due to increasing demand. However, the CEO notices that despite higher sales, overall profitability is not improving significantly. The finance team suggests implementing budgeting, variance analysis, and performance reports to better understand cost behavior and operational efficiency. Explain how Management Accounting techniques can help the company improve planning, cost control, and strategic decision-making in this situation. Support your explanation with relevant examples. (5 Marks)

Ans 2(A).

Introduction

When a company’s sales grow but profits do not, the root cause is almost always a cost management problem rather than a revenue problem. For an electric scooter company scaling rapidly, expanding production without a corresponding improvement in cost discipline creates a situation where higher volumes simply amplify existing inefficiencies. Management accounting techniques provide the visibility and control mechanisms needed to diagnose the problem and

 

Q2 (B). A consumer electronics company producing Bluetooth headphones reported different profit figures under Marginal Costing and Absorption Costing during the same financial period. The finance manager observed that production was higher than sales, resulting in unsold inventory at the end of the period. The management wants to understand why profit figures differ under the two costing methods. Explain how Marginal Costing and Absorption Costing treat fixed manufacturing overheads differently, and how this difference leads to variation in reported profit when production exceeds sales. (5 Marks)

Ans 2(B).

Introduction

The reporting of different profit figures under Marginal Costing and Absorption Costing for the same period is not an error but a consequence of how each method treats fixed manufacturing overheads. When production exceeds sales and closing inventory builds up, the two methods diverge in profitability because they treat the period’s fixed costs differently in relation to that unsold inventory.

Concept and

 

Human Resource Management

Jun 2026 Examination

 

 

Q1. A rapidly expanding e-commerce startup has been experiencing mismatches between employee capabilities and job roles, resulting in frequent underperformance and morale issues. The HR team, previously focused on generic job postings and annual performance reviews, now wants to leverage job analysis data to directly inform training, recruitment, and performance management systems. However, they lack a structured process to translate complex job analysis findings into actionable HR strategies that can keep pace with the company’s growth and frequent changes in job content. How should the HR team apply job analysis insights to systematically develop and align competency-based recruitment, performance management, and targeted training programs? (10 Marks)

Ans 1.

Introduction

Job analysis is the systematic process of collecting and documenting information about the tasks, responsibilities, required skills, and context of a job role. For an e-commerce startup experiencing capability mismatches, it is the most foundational HR tool available. It provides factual basis for every downstream HR decision. Generic job postings attract generically qualified candidates. Competency frameworks built on real job analysis attract the right ones. When the HR team aligns recruitment criteria, performance standards, and training content to the same job analysis data, every HR system reinforces the others instead of working in isolation. This alignment converts individual HR activities into an

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Q2 (A). Horizon Tech, a rapidly expanding IT services company, needed to hire 50 professionals across various departments within three months. Its revamped selection process included resume screening, online technical tests, multi-stage interviews, and stringent reference and background checks. While the process successfully met hiring targets with candidates who fit both technical and cultural expectations, some department managers observed that certain niche skills were still underrepresented and suggested further customization of recruitment practices. Evaluate the effectiveness of Horizon Tech’s revised selection process in balancing speed, quality, and role-specific requirements. (5 Marks)

Ans 2(A).

Introduction

Horizon Tech’s revamped selection process shows that a well-structured multi-stage system can deliver speed and quality simultaneously at high volume. Hiring 50 professionals across departments in three months is operationally significant. The niche skill gap flagged by department managers, however, reveals an important limitation that the process must now address.

Concept and Application

An effective selection process balances three demands: speed to meet business timelines, quality to ensure competent and culture-fit hires, and role specificity to match niche technical requirements. Horizon Tech performs well on

 

Q2 (B). Tech PT, renowned for its corporate training and performance management systems, has experienced declining employee retention rates and mixed results in leadership pipeline development. The company offers a wide array of technical training modules, a career progression framework, wellness initiatives, and performance appraisals linked to rewards. However, team leaders are divided: some argue that career development and succession planning programs are failing to adequately prepare employees for future roles, while others believe wellness and employee engagement are not integrated into talent development. Evaluate how Tech PT can improve the integration of career development and succession planning to enhance overall employee retention. (5 Marks)

 

 

Ans 2(B).

Introduction

Tech PT’s retention challenge is not caused by an absence of programs. It has career frameworks, wellness initiatives, training modules, and performance appraisals. The problem is fragmentation. When these programs operate independently without connecting to a shared talent narrative, employees cannot see a coherent growth path within the organization.

Concept and

 

Legal Aspect of Business

Jun 2026 Examination

 

 

Q1. A startup electronics retailer has recently signed a large contract to supply custom- branded smartwatches to a nationwide fitness chain. The contract specifies exact features and performance standards. However, after initial delivery, the client discovers that a significant percentage of the watches do not match the agreed-upon technical specifications. The client is dissatisfied, threatening legal action and withdrawal from the contract. The retailer’s leadership team must decide how to respond, considering the essential elements of the contract and the remedies available under the Sale of Goods Act, 1930.Apply the legal principles governing conditions and warranties in sales contracts to this scenario. How should the retailer distinguish between a breach of condition and a breach of warranty, and what actions can it take to address the client’s complaints while minimizing legal liability and preserving business relationships? (10 Marks)

Ans 1.

Introduction

When it comes to a contract for sale the distinction between condition and warrantee plays a vital aspect in determining rights and remedies of both party. In the particular case, an electronic store that is a startup provided the smartwatches with a custom design to a large fitness chain based on agreed guidelines. However, an extensive portion of the products delivered failed to satisfy the technical requirements that resulted in dissatisfaction, and possibly legal action. Under the Sale of Goods Act, 1930, disputes need to be

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Q2(A). A multinational supplier entered into a year-long exclusive distribution contract with an Indian retail chain. Six months into the agreement, the supplier alleges undue influence by senior executives of the retailer at the time of signing, claiming threats were made during negotiations. The retailer insists the contract was signed with free consent and all terms were clear. Both parties now contest the validity of the contract, with the business at risk of supply chain disruption and reputational loss.Assess the competing claims regarding the enforceability of this contract by analyzing the concept of ‘free consent’ and the doctrine of undue influence as per the Indian Contract Act, 1872. Critique the strengths and weaknesses of each party’s position, and recommend how the dispute should be resolved for optimal commercial and ethical outcomes. (5 Marks)

Ans 2a.

Introduction

The legitimacy of a contract relies on consent to the terms of the contract. In this particular case, the supplier alleges undue influence from executive officers of the retailer while the retailer argues that the contract was made voluntarily and in full transparency. It is imperative to examine the dispute in accordance with the Indian Contract Act, 1872 which is viewed from both legal and commercial

 

Q2(B)A large logistics company mistakenly credits a sum of Rs.1,00,000 to a vendor’s account instead of the intended recipient. The vendor, aware of the extra funds, uses the money for business operations. Later, the error is discovered, and the company requests the vendor to return the sum. The vendor claims he accepted the payment in good faith and is unwilling to return it without compensation for the operational improvements made.Evaluate the legal obligations of the vendor under Section 72 of the Indian Contract Act, 1872, considering the principles of quasi-contract and unjust enrichment. Critically assess whether the vendor is entitled to retain the benefit and suggest the most equitable resolution in this situation. Justify your position by analyzing both parties’ perspectives. (5 Marks)

Ans 2b.

Introduction

If money is transferred by accident, it is usually the law that demands its return. In this case one logistics company mistakenly gave Rs.1,00,000 to a vendor, which knowingly utilized it for his own business. The case must be investigated within Section 72 of the Indian Contract Act, 1872, together with quasi-contracts and unjust enrichment rules.

Concept and

 

Operations Management

Jun 2026 Examination

 

 

 

Q1. A leading bicycle manufacturer is experiencing an unexpected surge in demand for its newly launched electric bikes due to favorable government incentives. The company currently produces 10,000 units daily but must increase output over the next six months while facing limited warehouse space and constrained resources. The operations manager must modify production schedules and allocate resources carefully to avoid costly last-minute changes, maintain lean inventory, and prevent shortages or overproduction.

Identify three specific actions the operations manager should take in adjusting the production schedule and resource allocation for the next six months. Provide justification for each action based on operational efficiency and inventory control. (10 Marks)

Ans 1.

Introduction

The recent surge in demand for electric bikes has presented both an opportunity and an operational challenge for the bicycle manufacturer. As much as increased demand may increase revenue, it also puts stress on the production capacity, storage space and resources. The firm currently produces 10,000 units daily, but growing without proper planning can lead to an overstocked inventory and shortages or inefficiencies. This is why the director of operations needs to follow a systematic approach for adjusting production schedules to plan efficiently for the future six months. Goal is to grow output with a measured manner by minimizing inventory and minimalizing waste and ensuring the smooth co-ordination of the supply chain, production and manufacture

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Q2(A). A startup is finalizing sourcing decisions for its family-sized kitchen appliance. It must choose between a single high-quality manufacturer offering reliability and branding benefits, and multiple smaller suppliers that reduce dependency risk but increase coordination complexity. With tight margins and strict launch timelines, the sourcing decision is critical to both risk management and profitability.

Choose either single sourcing or multiple sourcing as the preferred strategy for the startup. Provide three specific points to justify your choice based on risk management and profitability considerations. (5 Marks)

Ans 2a.

Introduction

The company is faced with a significant sourcing decision that will influence its profitability, cost effectiveness, product quality and risk exposure. With tight margins and strictly enforced timings to launch, picking an appropriate strategy for sourcing is crucial. A decision that is based on operation ease, efficiency, as well as reliable supply in order to make sure a smoothly and effective market

 

Q2(B). A leading pharmaceutical company has been producing drugs using an intermittent flow system to handle varying demand and customization. With a new high-demand drug nearing commercialization, top management is considering shifting to a continuous flow system to improve volume and consistency. However, concerns exist regarding flexibility, setup costs, and vulnerability to disruptions.

As an operations consultant, recommend whether the company should shift to a continuous flow system for this new drug. Provide three specific points to justify your recommendation based on production efficiency, flexibility, and risk considerations. (5 Marks)

Ans 2b.

Introduction

Pharmaceutical companies are evaluating whether or not to move from an intermittent flow system into one that is continuous for the production of a highly-demanding drug. This choice is important because it could impact production efficiency also, as will flexibility and risk. A company should select an equipment that is able to handle large-scale production and maintains consistency and quality.

Concept and

 

Strategic Management

Jun 2026 Examination

 

 

Q1. A mid-sized Indian pharmaceutical firm, ‘Natco Pharma’, has historically focused on a cost-focus generic drug strategy, targeting niche therapeutic segments with affordable products. As the industry consolidates and larger multinational firms enter these niches, Natco Pharma sees its market share declining. The management team is contemplating whether to stick with its cost-focus strategy or simultaneously pursue differentiation by introducing value-added features to its drugs (such as enhanced delivery mechanisms). They are wary of the risks of being ‘stuck in the middle. Using Porter’s framework, how should Natco Pharma apply the principles of cost leadership and differentiation to avoid being stuck in the middle? What combination of strategies and operational changes would enable sustainable competitive advantage in a consolidating, competitive market? (10 Marks)

Ans 1.

Introduction

Natco Pharma is now experiencing an increase in competition within the pharmaceutical business, specifically due to increasing entry of multinational companies into the niche market of generics. It has been a tradition that Natco Pharma has followed a pricing-focused strategy. It has been able to offer affordable drugs in specific areas. In the current environment of increased competition and falling margins, the organization must rethink its strategy. The problem is the best option: to remain with cost leadership or adopt differentiation without losing the competitive edge. By utilizing Porter’s Generic Strategies framework, Natco Pharma has to be careful about aligning its performance in

 

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Q2(A). GreenTech Industries, a mid-sized manufacturer of eco-friendly packaging, has been impacted by a new wave of government regulations limiting emissions (natural environment), while a viral marketing campaign is causing their primary consumer base to demand even greener products (societal environment). At the same time, their suppliers have hiked prices due to rising raw material scarcity (task environment). The leadership must decide where to invest their limited resources for maximum impact. Critically evaluate how the executive team at GreenTech Industries should prioritize their response strategies when faced with simultaneous changes in environmental regulations (natural environment), rising eco-conscious consumer demands (societal environment), and increased supplier costs (task environment). (5 Marks)

Ans 2a.

Introduction

GreenTech Industries is navigating a complex business environment where consumers’ changing expectations and increasing supplier costs are occurring simultaneously. This is a complex situation that requires a an attentive prioritization of the strategic options. The leadership must allocate limited funds in a way which keeps compliance in place, increases competitiveness as well as ensuring long-term financial viability.

Concept and

 

Q2(B). A diversified conglomerate with established interests in food processing, textiles, and construction materials is considering expanding into adjacent (related diversification) sectors, as well as exploring unrelated industries such as fintech and digital healthcare. With market conditions changing swiftly, executives are debating which diversification path would better insulate the firm while positioning it for future growth. You are asked to assess the merits and challenges of related and unrelated diversification in this context and provide a well-justified recommendation to sustain competitive advantage. (5 Marks)

Ans 3b.

Introduction

An entity that has diversified operations must make with a decision-making dilemma between the two types of diversification, unrelated and related as the company seeks stability and growth within a constantly changing market. Every option offers its own advantages as well as threats. The choice should be in line with the company’s strengths, capabilities, risk willingness, and long-term plan to ensure a long-term competitive advantage.

Concept and