CBSE Class 12 Business Studies Controlling MCQs Set E

Question: Standards are set in
a) Qualitative
b) Quantitative
c) Both (a) & (b)
d) None
Answer: c

Question: Controlling function brings back the management cycle to which function?
a) Directing
b) Planning
c) Organizing
d) Staffing
Answer: b

Question: Standards are the bench mark to-
a) Measure future performance
b) Measure actual performance
c) Correct future performance
d) Correct actual performance
Answer: b

Question: Controlling function of organization is
a) Forward looking
b) Forward as well as backward looking
c) Backward looking
d) None
Answer: b

Question: Planning and Controlling are ________ to each other.
a) Separate
b) Unrelated
c) Interrelated
d) Opposite
Answer: c

Question: Critical point control focuses on
a) Every task
b) Financial areas
c) Key result area
d) Planning areas
Answer: c

Question: Controlling is the function which brings back the management cycle to
a) Organizing
b) Planning
c) Directing
d) Management
Answer: b

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

Question: Which of the following is the function prerequisite for controlling?
a) Staffing
b) Organizing
c) Planning
d) Directing
Answer: c

Question: Controlling is
a) Forward looking
b) Backward looking
c) Both forward and backward looking
d) Neither forward nor backward looking
Answer: c

Question: “Controlling is required at all the levels of management”. Which feature is highlighted in the above statement?
a) Dynamic
b) Contingent
c) Pervasive
d) Continuous
Answer: c

Question: Management by Exception refers to
a) Significant deviation which goes beyond the permissible limit should be brought to the notice of the management.
b) Focuses on the key result areas.
c) Comparison of actual performance with the standard.
d) Measurement of company’s and its employees’ performance.
Answer: a

Question: Standards means
a) Target
b) Estimates
c) Output
d) Results
Answer: a

Question: This is one of the features of standards. Identify it.
a) Rigid
b) Flexible
c) Static
d) Unbending
Answer: b

Question: Management by exception differentiates between
a) Standards & outputs
b) Planned & actual
c) Critical & simple problems
d) Input & output
Answer: b

Question: Which one of the following is not the step in the process of controlling?
a) Measurement of actual performance
b) Establishing reporting relationship
c) Setting performance standards
d) Taking corrective action
Answer: b

Question: Measurement of employees’ performance can be done by
a) Increasing the market share of the company
b) Gross profit ratio
c) Return on investment
d) Performance report
Answer: d

Question: Which among the following is a feature of standard-
a) Rigid
b) General guidelines
c) Flexible
d) Static
Answer: c

Question: Among the following, which one standard can be maintained in Marketing?
a) Cost
b) Flow of capital
c) Advertising expenditure
d) Liquidity
Answer: c

Question: Management by exception refers to-
a) Controlling significant deviations
b) Focus on key result areas
c) Check on each and every activity
d) Keep a control on everything
Answer: a

Question: Controlling function aims to-
a) Find out how far actual performance deviates from standards.
b) Find out how far standards deviate from actual performance.
c) Initiate action by people in the organization.
d) Improve job satisfaction and morale of the employee.
Answer: a

Question: Effectiveness of budgeting depends on
a) Liquidity
b) Estimates
c) Planning
d) Resources
Answer: b

Question: Management by exception
a) Significant deviation
b) All deviations
c) Controlling
d) None
Answer: a

Question: Standards can be set in the following terms:
a) Only qualitative
b) Only quantitative
c) Both qualitative and quantitative
d) Neither qualitative nor quantitative
Answer: c

Question: Critical point control focuses on-
a) Significant deviations only
b) Key result areas
c) Each and every activity in an organization
d) Attempts to control everything
Answer: b

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

Question: Deviations may have multiple origins. In case of production, it may be ________
a) Unrealistic target of sales
b) More discounts were given
Answer: b

Question: Which one of the following is not a step of controlling process-
a) Measurement of actual performance
b) Analysing deviations
c) Evaluating alternative course of action
d) Taking corrective action
Answer: c

Question: Under controlling function, deviations can be analyzed by-
a) Setting performance standards
b) Measurement of actual performance
c) Critical point control
d) Taking corrective actions
Answer: c

Question: Which one of the following is not an importance of controlling-
a) Judging accuracy of standard
b) Facilitates coordination in action
c) Ensuring order and discipline
d) Clarity in working relationship
Answer: d

Fill In The Blanks :

Question: Planning and controlling are interrelated and, in fact, _________ each other.
Answer: reinforce

Question: Controlling provides _________ of direction.
Answer: unity

Question: Feedback refers to __________ regarding the reasons for mis match between actual and plan performance and corrective action.
Answer: communication

Question: Controlling can be used to _________ the performance of employees.
Answer: appraise

Question: Controlling provides _________ to all the activities and efforts for achieving organizational goals.
Answer: direction

Question: Deviations refers to difference between _________performance and plan performance.
Answer: actual

Question: Each and every activity of the organization is governed by pre-_________ standards and norms.
Answer: determined

Question: Controlling ensures that an organization’s resources are being used _________ and _________ for the achievement of pre-determined goals.
Answer: effectively , efficiently

Question: Controlling function brings the management cycle back to _________ function.
Answer: planning

Question: No corrective action is needed when _____ are with in acceptable limits.
Answer: deviation

True / False :

Question: Corrective actions are necessary after analysing the deviations.
Answer: True

Question: Controlling is not required in an educational institution.
Answer: False

Question: Controlling does not highlight the deviations in the process.
Answer: False

Question: Standards means target against which the actual performance is measured.
Answer: True

Question: Resources are used in the most effective and efficient manner while exercising controlling.
Answer: True

Question: Management by exception doesnot differentiates between critical &simple problems .
Answer: False

Question: The effectiveness of budgeting depends on how accurately estimates have been made about future.
Answer: True

Question: Controlling guides the organization to keep everything on right track.
Answer: True

Question: Controlling is a primary function of every manager.
Answer: True

Question: Planning and controlling are inter dependent & interlinked
Answer: True

Match the following :

Question: Match the correct description for the following
i) Controlling                          a) Intellectual process based on thinking and analysing
ii) Planning                            b) It is the process to check whether the decisions are translated into desired action.
                                             c) It is only focussed on improving the morale of the employees
Answer: i)b, ii)a

Question: Match the correct performance technique with the performance measurement of the following.
i) Measurement of employee’s performance            a) return on investment
ii) Measurement of company’s performance             b) Sample checking
                                                                                  c) Increase in quality
                                                                                  d) performance Report
Answer: i) d, ii) a

Question: Match the process of controlling from the following
i) Setting performance standards                           a) Performance should measure in objective and reliable manner
ii) Measurement of Actual performance                  b) Standards are criteria against which actual performance would
    be measured .
iii) Analysing deviations                                         c) When deviations goes beyond permissible limit.
iv) Taking corrective actions                                  d) Critical point control and management by exception are used.
Answer: i)b, ii)a, iii)d, iv)c

Question: Match the standards used in the below functional areas.
i) Production                               a) sales volume
ii) Finance and accounting          b) labour turnover
                                                   c) Flow of capital
                                                   d) quality
Answer: i) d, ii) c

Question: Match the correct importance of controlling with its description
i) Making efficient use of resources                               a) They will get good appreciated, if they do what is expected from them.
ii) Ensuring order and discipline                                    b) There should be reduction in wastage and spoilage of resources
iii) Accomplishing organizational goals                          c) It helps in minimizing the dishonest behaviour of employees.
iv) Improving employees motivation                              d) All the efforts should be directed towards one goal.
Answer: i) b, ii)c, iii)d, iv)a

Question: Match the following points with the proper definition of planning and controlling.
i) Planning                          a) It finds out how far actual performance deviates from the standard.
ii) Controlling                      b) It is for future work of action.
                                          c) It is not the best way to check the quality of work.
                                          d) It deals only with the final result of the company.
Answer: i) b, ii) a

Question: Match the following standards used in the below given functional areas
i) Marketing                             a) Cost
ii) Human Resources               b) Sales Volume
                                                c) Liquidity
                                                d) Labour relations
Answer: i) b, ii) d

Question: Match the points which describe the importance of judging accuracy of standard in the controlling function.
i) Carefully check                                         a) Laid down carefully
ii) Review                                                     b) Assessing what is being done
iii) Accurate and Objective                           c) Appraising the performance.
Answer: i) b, ii) c, iii) a

Question: Match the following process with the correct steps
i) The actual and standards are compared                            a) Corrective Action to find the deviations.
ii) If something goes wrong, then                                          b) Analysing deviations there should be a proper way to make it correct.
iii) Pre-determined norms should be set                               c) Comparison between actual and standard before doing
iv) Difference between actual and standard                          d) Setting performance standard
Answer: i) c, ii)a, iii)d, iv)b

Question: Match the causes of deviations with correct corrective action
i) Obsolete Machinery                          a) Change the quality specifications for the materials used
ii) Defective Process                            b) Repair or replace the existing machinery.
iii) Defective machinery                       c) Modify the existing process
iv) Defective Material                          d) Undertake technological upgradation of machinery.
Answer: i) d, ii)c, iii)b, iv)a