Business Studies Class 12 MCQs | Chapter 8 Controlling

[Business Studies MCQs, Controlling, AHSEC, CBSE, Class 12, Objective Questions and Answers]

Business Studies Class 12 MCQs
Chapter 8: Controlling
Multiple Choice Questions and Answers

Objective Questions (1 Mark)

1. What is meant by controlling?

Ans: Under controlling deviations are sought to be noticed in the actual work progress and the standards already determined, the causes of deviations are found out and corrective action is taken so that in future the mistakes are not repeated.

2. Which function of management ensures that actual activities confirm to planned activities?       2012, 2018

Ans: It is controlling.

3. Name the function which reviews the operations in a business unit.

Ans: Controlling function.

4. Why it is said that ‘planning is meaningless without controlling’?

Ans: Because in the absence of controlling no will take it seriously to work according to the plans and hence, the plan will fail.

5. Why it is said that ‘controlling is looking back’?

Ans: Because under it, a manager tries to find out whether the work has been done according to the standards or not.

6. Give meaning of the term’ Deviation’ as used in the control function of management.

Ans: Deviation refers to the difference between actual performance and standard work.

7. Name the two situations in which corrective action is not required.

Ans: (i) Zero Deviation (ii) Positive Deviation.

8. State any one advantage of ‘Critical-point Control’ and ‘Management by Exception.’

Ans: By taking care of important deviations both time and efforts are saved.

9. Why it is said that ‘planning is looking back’?

Ans: Because the planning is done on the basis of the happening of the past.

10. What is meant by ‘Budget’?                                2019

Ans: A budget is a quantitative expression of the plan of action. It is a statement of expected results and expected cost expressed in numerical terms. Budget is a statement which helps us to know the future results and to achieve these results how much we will have to spend. There are different types of budgets for example, production budget, sales budget, cash budget, fixed and flexible budget, overheads budget etc.

11. What do you mean by Quantitative Standards?

Ans: They are the standards which are shown with the help of figures, e.g., production of 10 units by a laborer in a day. For example: efficiency level of managers, labour relations etc.

12. Which of the following is not an essential element of an effective control system?       2009

a)      Rigidity

b)      Economy

c)       Simplicity

d)      Flexibility

Ans: Rigidity

13. Which two standards will you suggest for production department?

Ans: Standard output, estimated cost of production.

14. Name the two situations in which corrective action is not required.

Ans: Corrective action is not required in case of: (i) Deviations within permissible limits. (ii) Positive deviations.

15. Management audit is a technique to check on the performance of company. Do you agree? Give reasons.

Ans: No, Management audit is a comprehensive and constructive review of the performance of management team of any organisation.

16. Does budgeting control require the preparation of budget? Give reason.

Ans: Yes, the success of budgetary control techniques depends upon the estimation of standards and for estimation of standards it is necessary to prepare various types of budget.

17. Is controlling “The End of Management Cycle”? Give reason.

Ans: No controlling is not the end of management functions cycle because it brings back the management cycle to planning function.

18. What is critical point of control?

Ans: It means keeping focus on some key areas and if there is any deviation in these key areas, and then it must be attended urgently.

19. What is feedback in controlling?

Ans: Feedback refers to list of reasons for deviations of plans or for inefficiency in overall working of organisations along with reasons and corrective measures.

20. “Controlling is a pervasive function.” Explain.

Ans: The controlling is a pervasive function of the management as it is performed in all organizations (business and non-business) and at all managerial levels. It is that function of management under which every manager at every level assures that the actual progress is in conformity with the plans.

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ALSO READ (AHSEC ASSAM BOARD CLASS 12)

1. AHSEC CLASS 12 BUSINESS STUDIES CHAPTERWISE NOTES

2. AHSEC CLASS 12 BUSINESS STUDIES QUESTION PAPERS (FROM 2012 TILL DATE)

3. AHSEC CLASS 12 BUSINESS STUDIES SOLVED QUESTION PAPERS (FROM 2012 TILL DATE)

4. AHSEC CLASS 12 BUSINESS STUDIES IMPORTANT QUESTIONS

5. BUSINESS STUDIES MCQs

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21. What is management by exceptions?             2020

Ans: Management by exception is an important principle of management control based on the belief that an attempt to control everything results in controlling nothing. Thus, only significant deviations which go beyond the permissible limit should be brought to the notice of management.

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