CBSE Class 12 Business Studies Controlling MCQs Set 02

Question: What is the last step in controlling process?
(a) Setting Performance Standards
(b) Taking corrective action
(c) Comparing actual performance with standards
(d) Measurement of actual performance

Answer: B

Question: What are the techniques of measurement of performance?
(a) Performance reports
(b) Sample Checking
(c) Personal Observation
(d) All of the above

Answer: D

Question: Controlling is __________ aspect of management.
(a) Physical
(b) Practical
(c) Mental
(d) Theoretical

Answer: B

Question: Technological upgradation is the best corrective action in case of _________
(a) Defective machinery
(b) Defective material
(c) Obsolete Machinery
(d) None of the above

Answer: C

Question: Controlling is _______________
(a) Economical
(b) Costly
(c) Free
(d) Very Cheap

Answer: B

Question: An efficient control system helps to
(a) Judges accuracy of standards
(b) Accomplishes organisational objectives
(c) Boosts employee morale
(d) All of the above

Answer: D

Question: Which of the following is a limitation of controlling?
(a) Controlling improves employee motivation
(b) Controlling is goal oriented
(c) Controlling is expensive
(d) Controlling ensures order and discipline

Answer: C

Question: What is the first step in controlling process?
(a) Comparing actual performance with standards
(b) Analysing deviations
(c) Setting performance standards
(d) Measurement of actual performance

Answer: C

Question: Planning without controlling is ________
(a) Cheap
(b) Effective
(c) Meaningless
(d) Costly

Answer: C

Question: Controlling function of an organisation is
(a) Forward as well as backward looking
(b) Backward looking
(c) Forward looking
(d) None of the above

Answer: A

Question: Which of the following is a technique of controlling?
(a) Managerial Audit
(b) Break even analysis
(c) Budget
(d) All of the above

Answer: D

Question: Which of the following is not correct?
(a) Controlling is goal oriented
(b) Controlling is pervasive function
(c) Controlling can prevent deviation
(d) Controlling ensures order and discipline

Answer: C

Question: Which of the following is not a limitation of controlling?
(a) Little control on external factors
(b) Costly affair
(c) Ensuring order & discipline
(d) Difficulty in setting quantitative standards

Answer: C

Question: When actual performance is better than the standard performance it is called _____
(a) Negative Deviation
(b) Poor Deviation
(c) Positive Deviation
(d) None of the above

Answer: C

Question: Which of the following is not a technique of controlling?
(a) Break even analysis
(b) Budget
(c) Managerial Audit
(d) Cash Flow Statement

Answer: D

Question: If there is lack of motivation among employees, suggest one better corrective action
(a) New Recruitment
(b) Providing Suitable incentives
(c) Deal Strictly
(d) Warning to employees

Answer: B

Question: Controlling is necessary for ____________
(a) Medium Level Enterprise
(b) Small Scale Enterprise
(c) Large Scale Enterprise
(d) All of the above

Answer: D

Question: Budgetary control requires the preparation of
(a) Budgets
(b) Network diagram
(c) Responsibility Centres
(d) Training schedule

Answer: A

Question: Which of the following is not applicable to responsibility accounting
(a) Accounting centre
(b) Cost centre
(c) Profit centre
(d) Investment centre

Answer: A

Question: What will be the corrective action for defective material?
(a) Change in Quantity
(b) Change in Price
(c) Change in Quality Specifications for the material used
(d) None of the above

Answer: C

Question: Management control is done by the __________________
(a) Managers at Top Level
(b) Managers at Middle Level
(c) Managers at Lower Level
(d) All of the above

Answer: D

Question: Why actual performance is compared with standards?
(a) To take corrective action
(b) To improve the quality of material
(c) To change the machinery
(d) None of the above

Answer: A

Question: “Planning is theoretical whereas controlling is practical”
(a) True
(b) False
(c) Cannot say
(d) All of the above

Answer: A

Question: The main focus of controlling is on ________________
(a) Competition
(b) External Forces
(c) Results
(d) Business Environment

Answer: C

Question: Management audit is a technique to keep a check on the performance of
(a) Company
(b) Management of the company
(c) Shareholders
(d) Customers

Answer: B

Question: Controlling function finds out how far __________ deviates from standards.
(a) Actual performance
(b) Improvement
(c) Corrective actions
(d) Cost

Answer: A

Question: Which of the following is not a process of controlling?
(a) Analyzing deviations
(b) Integrates employees efforts
(c) Taking corrective measures
(d) Setting performance standards

Answer: B

Question: Om Prakash has set up a small business unit for the manufacturing of detergent. In order to market the detergent in the local residential areas, he has appointed a team of ten salesmen. Each salesman is expected to sell at least 200 units of the detergent within a week’s time. Identify the point of importance of controlling being highlighted in the above case.
(a) Controlling helps in judging accuracy of standards.
(b) It ensures efficient use of resources.
(c) It helps in improving employee motivation.
(d) It facilitates co-ordination in action.

Answer: C

Question: Which of the following is a traditional technique of managerial control?
(a) Personal observation
(b) Breakeven analysis
(c) Budgetary control
(d) All of the above

Answer: D

Question: There is one popular saying that Planning is looking _________ while controlling is looking ________
(a) Back, Ahead
(b) Ahead, Back
(c) Future, Present
(d) None of the above

Answer: B

Question: Assembling of facilities and personnel for collecting, processing, information that is required by managers is called
(a) PERT
(b) CPM
(c) Ratio analysis
(d) Management information Technique

Answer: D

Question: The comparison of actual performance with the planned performance becomes easier if the standards are set in
(a) Qualitative terms
(b) Quantitative terms
(c) Either of the above
(d) None of the above

Answer: B