CUET Business Studies MCQs Unit VIII Controlling

Question: _____ ensures that an organisation’s resources are used effectively and efficiently for the achievement of pre-determined goals.
(a) Management
(b) Organising
(c) Controlling
(d) Coordination
Answer: C

Question: Which of the following represents quantitative standards?
(a) Improving goodwill
(b) Time to be spent in performing a task
(c) Improving the motivation level of employees
(d) None of these
Answer: B

Question: When the deviations go beyond the acceptable range, especially in the importance area, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished.
(a) Management by exception
(b) Critical point control
(c) Both (a) and (b)
(d) Analysing deviations
Answer: C

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

Question: Which standard is associated with production?
(a) Quality
(b) Quantity
(c) Quality and Quantity
(d) Labour
Answer: C

Question:  Which of the following is associated with the marketing standard?
(a) Sales expenses
(b) Capital expense
(c) Quantity
(d) Dispute rate
Answer: A

Question: An efficient control system helps to ____________.
(a) accomplish organisational objectives
(b) boost employee morale
(c) judge accuracy of standards
(d) All of these
Answer: D

Question: Which one of the following points of importance of controlling is best described above?
(a) Accomplishing organisational goals
(b) Facilitating coordination in action
(c) Making efficient use of resources
(d) Improving employee motivation
Answer: B

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

Question: First step in controlling process is:
(a) Taking corrective action
(b) Analysing the deviations
(c) Determining standards
(d) Measurement of actual performance.
Answer: C

Question:  ‘Planning in the absence of controlling is meaningless’. What does this statement indicate in respect of both?
(a) Only planning is essential
(b) Only controlling is essential
(c) Both are essential
(d) Both are unnecessary
Answer: C

Question: What type of nature the control has?
(a) Positive approach
(b) Negative approach
(c) Both of the above
(d) None of these
Answer: C

Question: Individual job performance is the standards set to gauge performance in which one of the following functional areas of business?
(a) Production
(b) Marketing
(c) HR
(d) Finance and Accounting
Answer: A

Question: Technique for measurement of performance:
(a) Personal observation
(b) Sample checking
(c) Performance reports
(d) All of these
Answer: D

Question: Controlling is needed at which level of management?
(a) Top level
(b) Middle level
(c) Lower level
(d) All level
Answer: D

Question: Which function of management is controlling?
(a) First
(b) Second
(c) Third
(d) Last
Answer: D

Question: In a manufacturing organisation, an increase of 5 % in the labour cost may be more trouble some than 15% increase in postal changes. Which of the following has been highlighted above?
(a) Critical point control
(b) Sample checking
(c) Performed reports
(d) Management by exception
Answer: A

Question: ________ checks whether decisions have been translated into desired action.
(a) Directing
(b) Controlling
(c) Organising
(d) Coordination
Answer: B

Question: Cost at Rs. 100 per unit is an example of which standard?
(a) Quantitative
(b) Qualitative
(c) Both
(d) None of these
Answer: A

Question: Controlling function of an organisation is _________.
(a) Forward looking
(b) Backward looking
(c) Forward as well as backward looking
(d) None of the above
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:  Which of the following qualities the standard should have?
(a) Achievable
(b) Measurable
(c) Flexible
(d) All of these
Answer: D

Question: This is the last step in the process of controlling.
(a) Analysing deviations
(b) Taking corrective action
(c) Setting performance standard
(d) Measurement of performance.
Answer: B

Question: Controlling is related to:
(a) Results
(b) Individuals
(c) Things
(d) Managers
Answer: A

Question: Which of the following is an example of qualitative standards?
(a) Time taken by a customer to wait for a table in a fast food chain having self-service
(b) Time to be spent in performing a task
(c) Cost to be incurred
(d) Product units to be produced and sold
Answer: A

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

Question: Strike is which type of cause of deviation?
(a) Uncertain conditions
(b) Human cause
(c) Various hindrances
(d) Defective standards
Answer: B

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

Answer: D

Question: Budgetary control requires the preparation of
(a) training schedule
(b) budgets
(c) network diagram
(d) responsibility centres

Answer: B

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

Answer: B

Question: “Managerial control implies the measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans.” This definition has been given by
(a) Koontz and O’ Donnell
(b) Peter Drucker
(c) Henri Fayol
(d) Chester Barnard

Answer: A

Question: Sales volume, sales expenses, advertising expenses are the part of ………… standards.
(a) production
(b) marketing
(c) HR
(d) finance

Answer: B

Question: Bajaj, the operation manager set a limit of 5% deviation in production and decided to take corrective action only if deviations occurred beyond 5%. Name the concept applicable here.
(a) Coordination
(b)Management principles
(c) Management by exception
(d) Critical point control

Answer: C

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

Answer: C

Question: Controlling provides direction to all activities and each department and employee is governed by predetermined standards, which helps in establishing ……… among them.
(a) organising
(b) directing
(c) planning
(d) co-ordination

Answer: D

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 is a pervasive function because it is performed
(a) in all organisations whether profit making or non profit making
(b) at all levels of management to ensure that the work at every stage is performed as planned
(c) goal oriented process
(d) Both (a) and (b)

Answer: D

Question: Which of the following describes the nature of controlling?
(a) Goal-oriented process
(b) Pervasive function
(c) Continuous process
(d) All of these

Answer: D

Question: Which of the following is not an importance of controlling?
(a) Judging accuracy of standards
(b) Effective use of resources
(c) Ensures order and discipline
(d) Exploitation of resources

Answer: D

Question: In controlling process, the next stage after setting performance standards is
(a)measurement of actual performance
(b) comparing actual performance with standards
(c) analysing deviations
(d) taking corrective action

Answer: A

Question: Which of the following factor(s) is/are beyond the control of an organisation?
(a) Change in government policies
(b) Change in technology
(c) Competition level
(d) All of the above

Answer: D

Question: Under controlling of HR area, corrective action must be taken for
(a) high labour turnover rate
(b) low labour turnover rate
(c) zero labour turnover rate
(d) low labour absenteeism

Answer: A

Question: Match the following causes of deviation with

Column I                                                  Column II
A. Defective material                        (i) Modify existing process
B. Defective machinery                    (ii) Change the quality of materials
C. Defective process                        (iii) Improve physical conditions of work
D. Defective physical                       (iv) Repair/replace machine
conditions
Codes
       A   B   C   D
(a) (i) (iii) (ii) (iv)
(b) (iv) (ii) (i) (iii)
(c) (ii) (iii) (i) (iv)
(d) (ii) (iv) (i) (iii)

Answer: D

Question: Himesh is a senior manager in a software consultancy firm. He regularly prepares performance reports of his subordinates as part of appraisal. The step of controlling process highlighted here is ……… .
(a)measuring performance
(b) compare performance against standard
(c) analysing deviation
(d) taking corrective action

Answer: A

Question: “Planning is guided by past experience and corrective actions taken in the controlling process. Thus, it is regarded as ……… .”
(a) backward-looking function
(b) forward-looking function
(c) pervasive function
(d) None of the above

Answer: A

Question: Is the final step of controlling process, the managers takes corrective measures to bring back everything on track. Sometimes even after best efforts, if deviations cannot be corrected then what should be done?
(a) Revise the standards
(b) Fire the managers
(c) Shut the company
(d) None of these

Answer: A

Question: The manager of 180 Ltd calculated total sales and revenue earned by each sales executive to conduct appraisals at the end of the year. Which step of controlling is highlighted here?
(a) Setting performance standards
(b) Measurement of actual performance
(c) Comparing actual performance with standards
(d) Analysing deviations

Answer: B

Question: In controlling process, while setting performance standards, standards can be set
(a) in quantitative terms only
(b) in qualitative terms only
(c) Both (a) and (b)
(d) in subjective terms

Answer: C

Question: Which standard(s) is/are used in production?
(a) Quality Standards
(b) Quantity Standards
(c) Cost Standards
(d) All of these

Answer: D

Question: Which of the following is the technique of measurement of performance?
(a) Personal observation
(b) Sample checking
(c) Performance reports
(d) All of the above

Answer: D

Question: ……………. is often referred to as control byexception.
(a) Deviation
(b)Management by exception
(c) Feedback
(d) Critical point

Answer: B

Question: Which of the following is an advantage of critical point control and management by exception?
(a) Saves time
(b) Better utilisation of managerial talent
(c) Facilitates delegation of authority
(d) All of the above

Answer: D

Question: ‘Taking corrective action’ is …….. step in process of controlling.
(a) first
(b) second
(c) third
(d) last

Answer: D

Question: Mr. Nirbhay Kapur, the CEO of Patna Ltd. analysed the variances to find out the causes of variances. Identify the step of controlling process being performed.
(a)Measurement of actual performance
(b) Comparing actual performance with standards
(c) Analysing deviations
(d) Taking corrective action

Answer: C

Question: With which concept is the saying “If you try to control everything you may end up controlling nothing” associated?
(a) Critical point control
(b)Management by exception
(c) Control by exception
(d) Both (b)and (c)

Answer: D

Question: Radihika Ltd is engaged in manufacturing machine components. The target production is 350 units per day. The company had been successfully attaining this target until four months ago. Over the last four months, it has been observed that daily production varies between 250-270 units. Identify the management function to rectify the above situation.
(a) Coordination
(b) Controlling
(c) Directing
(d) Planning

Answer: B

Question: An efficient control system helps to
(a) judge accuracy of standards
(b) boost employee morale
(c) Both (a) and (b)
(d) None of the above 

Answer: C