CBSE Class 12 Business Studies Controlling Worksheet Set E

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 associated with the marketing standard?
(a) sales expenses
(b) Capital expense
(c) Quantity
(d) Dispute rate

Answer : A

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 standard is associated with production?
(a) Quality
(b) Quantity
(c) Quality and Quantity
(d) Labour

Answer : C

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. Controlling is related to:
(a) Results
(b) Individuals
(c) Things
(d) Managers

Answer : A

Question. Which of the following qualities the standard should have?
(a) Achievable
(b) Measurable
(c) Flexible
(d) All of these

Answer : D

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

Answer : B

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

Answer : A

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

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. 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 function of management is controlling?
(a) First
(b) Second
(c) Third
(d) Last

Answer : D

Important Questions for NCERT Class 12 Business Studies Directing

Very Short Answer Questions :

Question. State any one advantage of ‘critical-point control' and ‘management by exception’.
Answer : By taking care of important deviations both time and efforts are saved.

Question. What should be the ‘focus point’ for a manager while controlling as controlling at each and every step is not possible?
Answer : Focus point for a manager While Controlling should be the‘ key result areas’.

Question. Which two standards will you suggest for production department?
Answer : (i) Quality
(ii ) Quantity.

Question. Give meaning of the term ‘deviation’ as used in the control function of management?
Answer : Deviation refers to the difference between actual performance and standard work.

Question. Why is it said that ‘planning is meaningless without controlling?
Answer : Because in the absence of controlling nobody will take it seriously to work according to the plans and hence, the plans will fail.

Question. Which two steps in the process of control are concerned with compelling events to conform to plan?
Answer : (i) Setting performance standards and
(ii) Taking corrective action.

Question. Name the two situations in which corrective action is not required.
Answer : (i) Zero deviation
(ii) positive deviation.

Question. In a company, employees achieved quantitative standard but could not attain qualitative standards which values have been ignored here?
Answer : i) Production of inferior quality goods.
ii) Exploitation of consumers.

Question. In which situation the need of taking corrective action arises?
Answer : In case of negative deviation.

Question. In controlling process standards were set according to the efficiency of the average employee which value has been kept in mind while setting the standards?
Answer : (i) Increase in the morale of the employees.
(ii) Improving the quality of production.

Short Answer Question :

Question. Love and kush are two friends. both are MBA (final year) students. One day, their professor called them to class stage for a surprise Test. He told that one of them will establish relationship between any two functions of management then the other one, will establish reverse relationship between the same two functions. Both will have to give justification for the relationship explained by them. It was a test carrying 50 marks. But the students were Intelligent and skillful. Love was the first to speak.
Love said that in his opinion of the functions of management selected by him one is always looking ahead (future) and the other is looking back (past).
No sooner did love express his opinion, than Kush identified the function selected by (love).
In his reply, Kush said that the one function stated by love to have been looking ahead was in his opinion, looking back and the other one stated by him (love) to have been looking back was looking ahead.
(a) Identify the functions of the management discussed in the above paragraph.
(b) Justify the contrary relations of management functions as viewed by love and Kush.
Answer : (a) Planning and controlling.
(b) Plans are prepared for future and involve looking ahead. On the contrary, controlling is like a postmortem of past activities to find out deviations from the standards. In that sense controlling is a backward looking function. However, it should be understood that planning is guided by past experiences and the corrective action initiated by control function.

Question. Explain two causes of deviations and corrective action to be taken?
Answer :Cause of deviations-
(i) Human causes: The efficiency of the employees is the chief cause among the human cause.
(ii) Uncertain events: It includes strikes lockouts, shortage of raw material, entry of many competitors in the market, etc.
Corrective Action-
(i) Corrective action should be taken only after a careful inquiry into the causes of deviations.
(ii) If the wrong standards had been determined, they should be modified.

Question. Explain any three feature of controlling?
Answer : (i) Controlling is a fundamental management function:
(ii) Pervasive function:
(iii) Controlling is a continuous activity:

Question. Michel john is a sole proprietor in Nicrobar. He has started trade after getting M.B.A. degree. he is fully familiar of management. He starts his business with the planning function of management. He desires that all his activities should conform to planning. To this effect, he has adopted a system that keeps a constant watch on the business Consequently, there is zero possibility of adverse results. It can, therefore, be said that this method is directly related to the results. Mr. John also believes that this method applies not only to any one level of management but to all the levels as well.
a) Identify the function of management referred to in the aforesaid paragraph.
b) Describe any two importance's of the functions of management as identified under point (a) above.
Answer : (a) Controlling
(b) Two importance of controlling are as under:
(i) Controlling helps in achieving goals: Controlling helps to achieve the goals of the organization by actual work performance with the standards.
(ii) Controlling increases efficiency: Controlling increases efficiency through optimum utilization of all the resources, such as Man, Machine, Material and money.

Question. Explain the principal of ‘critical-point control’ and ‘principal of management by exception’?
Answer : (i) principal of critical-point control: it refers to that concept of management which holds instead of all activities the management should focus its attention on only important activities.
(i) Principal of management by exception: it refer to that principal of organizational control which holds that only significant deviations (i.e., exceptions) should be brought to the top management attentions.

Question. After setting the performance standards the next step in the controlling process is the ‘measurement of actual performance’. Explain this step in the process of controlling?
Answer : The second step in the process of controlling is the measurement of actual performance. The measurements of actual performance is done on the basis of predetermined standards. The measurement of actual performance tells the manager whether the work has been done according to the plan or not.
Performance should be measured in an objective and reliable manner which includes personal observation, sample checking. Performance should be measured in same terms in which standards have been established, this will facilitate comparison.

Question. “Prakash limited” is accompany manufacturing electrical goods Smt. Ruby is its managing director. By virtue of her wise directions, the company has achieved great heights. A management institute one day invited her for a lecture. There she got an opportunity to dialogue with the students of management studies. She narrated to them the story of her success. She told them two main things, First: the employee should know that their work is being evaluated and progress report prepared. Second, optimum use of physical resources should be made possible.
a) Identify the above said function of the management.
b) On the basis of the aforesaid paragraph write two point regarding the importance of the function of management as identified in point (a) above.
Answer : (a) Controlling
(b) Two importance of controlling are as under:
(i) Controlling helps in achieving goals: Controlling helps to achieve the goals of the organization by actual work performance with the standards.
(ii) Controlling increases efficiency: Controlling increases efficiency through optimum utilization of all the resources, such as Man, Machine, Material and money.

Long Answer Questions :

Question. Explain the various steps in the process of controlling?
Answer : Steps in the process of controlling
1) Setting Performance Standards: Standards serve as criteria against which actual performance would be measured. It can be both in terms of quantitative and qualitative.
2) Measurement of Actual Performance: Performance should be measured in an objective and reliable manner.
3) Comparison of Actual Performance with Standards: in this steps actual performance are compared with standard such comparis on reveals deviations.
4) Analyzing deviations: This step compels events to conform to plAnswer : Deviations are the errors or weakness which may occur in the process of achievement of goals and the manager has to rectify them. The acceptable range of deviations must be determined.
5) Taking Corrective Action: It is necessary to identify the exact deviation to take corrective action. This step compels events to conform to plAnswer :

Question. Explain the relationship between planning and controlling?
Answer : Relationship between Planning and Controlling:-
Planning and Controlling, both are major and interdependent functions of management. On one hand, planning provides the base for controlling, on the other hand controlling Ensures that plans are successfully converted in to reality. The relationship between planning and controlling can be analyzed in two parts: -
1) Interdependence
2) Difference
Interdependence: -
One of the famous management experts had said that, “Planning is meaningless without controlling and controlling is blind without planning.” Planning provide the base for controlling. It means that planning sets the objectives, decide the future course of action for the firm. It provides the basic framework for all other activities of management including controlling.
In the same way controlling process cannot be performed, until and unless we have planned something in advance. If the standards are not determined, there is no justification left for controlling.
Difference:-
Planning and Controlling both are opposite looking functions because plans are always made for future, whereas controlling is a backward looking function in which at the completion of process, manager tries to find whether it has been done according to plan or not. Planning is the first function of management. All the other function follows it, whereas controlling is the last function, which follows all the other functions of management.

Question. Mr. Jai Prakash Gupta is the general manager of “ Bhagwati Udyog pvt. Ltd.” With a view to running his business in a careful manner, he divided all the activities into seven departments. These Departments were: purchase, Marketing, production, personnel, finance, Accounting and Correspondence. Later on, he realized that accounting and correspondence department can be merged into finance department. Thus, all business activities were divided into five departments. Mr. Gupta is now thinking on the lines as to which are the department, out of these five that will have significant role in the success of the business, After complete analysis, he concluded that marketing, production and finance were the department on which success of the business depended, It meant that even of some shortcoming occurred in the departments of purchase and personnel, it would not affect much the success of the business, Thereafter, Mr. Gupta determined deviation tolerance limits of these three main departments. It meant that if deviation of these departments remains within this tolerance limit, then it will be looked after by the concerned manager. However, in case the deviation is beyond this limit that same will be brought to the notice of General Manager.
(a) Identify two function of the management referred in the above paragraph
(b) Describe the relevant concepts of identified functions.
Answer : (a) Organizing and controlling
(b) (i) Concept related to organizing-Under it, second step of organizing process i.e., departmentalization is involved.
(ii) Concept related to Controlling-Following two concepts are related to controlling
(a) Critical point control- it is the concept of management which holds instead of all
activities the management should focus its attention on only important activities.
Management by Exception- it refer to that principal of organizational control which holds that only significant deviations (i.e., exceptions) should be brought to the notice of management.