Important MCQs of Controlling chapter of Business Studies Class 12

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Looking for important MCQs of Controlling chapter of Business studies of class 12 with answers of CBSE, ISC, and other State Boards.

We have compiled a comprehensive list of very important multiple choice questions with answers of the Controlling chapter of BST class 12

Multiple Choice Questions of Controlling gchapter of Business Studies Class 12

Let’s Practice.

Control is exercised:

a) When something goes wrong
b) When efficiency is to be improved
c) Regularly
d) When the Management desires

Ans – b)

To make sure employees focus on work and follow the method of production as per plan the
management of Amaira Ltd. decided to install CCTV (close circuit television) in the factory
for monitoring the activities of workers. The managerial function discussed above is

a) Planning
b) Controlling
c) Staffing
d) Directing

Ans – b)

Corrective action is a part of:

a) Planning
b) Organising
c) Controlling
d) All of the above

Ans – c)

Rakesh 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 is

a) Measuring of performance
b) Compare performance against standard
c) Analysing deviation
d) Taking corrective action

Ans – a)

‘Controlling is required at all the levels of management’. Which feature of controlling is being
highlighted?

a) Controlling is a goal oriented function
b) Controlling is pervasive
c) Controlling is a contrinous function
d) Controlling is both a backward looking as well as forward looking function.

Ans – b)

Planning and controlling are __ to each other.

a) Opposite
b) Unrelated
c) Inter related
d) Separate

Ans – c)

Controlling involves:

a) Comparison of actual and standard performance
b) Setting Objectives
c) Taking corrective actions
d) All of the above

Ans – a), c)

In Controlling, actual performance is compared with

a) Performance of other employees
b) Performance of previous year
c) Planned Performance
d) None of the above

Ans – c)

Controlling function of an organisation is:

a) Forward looking
b) Backward looking
c) Both a) and b)
d) None of the above

Ans – c)

Controlling is

a) Backward looking function
b) Forward looking function
c) Both backward as well as forward looking function
d) None of the above

Ans – c)

Critical point control focuses on:

a) Every Activity
b) Key Result Areas
c) Actual Output
d) Planned Output

Ans – b)

Controlling and Planning are

a) Independent functions
b) Interdependent functions
c) Both a) and b)
d) None of the above

Ans – b)

Out of the following, which standard can be maintained in Marketing?

a) Cost
b) Advertising Expenditure
c) Quantity
d) Liquidity

Ans – b)

Under critical point, control manager

a) Critically observes and takes action on every deviation
b) Ignores deviation
c) Gives more importance to deviations taking place in key areas
d) None of the above

Ans – c)

Which principle is based on the following belief: ‘If you try to control everything, you
may end up controlling nothing’.

a) Management by Exception
b) Critical Point Control
c) Both a) and b)
d) Neither a) nor b)

Ans – a)

Under management by exeption manager

a) Set up a range and deviation with in the range are ignored and beyond range are taken
seriously
b) All deviations are taken seriously
c) Both a) and b)
d) None of the above

Ans – a)

Management by exception states that Management should:

a) Check everything without exception
b) Invariably take corrective action without exception
c) Accept exceptions in emergencies
d) Give attention to significant deviations

Ans – d)

Management by exception and critical point control techniques of controlling

a) waste energy and efforts of managers
b) Saves energy and efforts of managers
c) Does not effect on energy and effects of managers
d) All of the above

Ans – b)

The main objective behind controlling is:

a) Punishing the guilty
b) Fixing responsibility of the subordinate
c) Ensuring conformity of performance with established standards
d) Creating a fear for disciplne

Ans – c)

When mismatch between plan and actual performance is due to over or under stating of plan,
then is is called

a) Strategic Control
b) Operational Control
c) Both a) and b)
d) None of the above

Ans – a)

Which step of controlling comes before ‘Measurement of Actual Performance’?

a) Setting performance standards
b) Analysing Deviations
c) Comparing actual performance with standards
d) Taking Corrective Action

Ans – a)

Controlling is performed at

a) Top level
b) Middle level
c) Supervisory level
d) All of the above

Ans – d)

Which one of the following is essential element of an effective control system?

a) Rigid
b) Flexible
c) Economical
d) Simple

Ans – b), c), d)

Planning Provides

a) Direction to controlling
b) Base of Controlling
c) Standard for Controlling
d) All of the above

Ans – d)

‘Time taken by Pizza Hut to serve a customer’s is an example of

a) Quantitative Standard
b) Qualitative Standard
c) Both a) and b)
d) None of these

Ans – a)

If deviations are minor, it should

a) Be taken seriously
b) Be ignored
c) Be reported to top level
d) None of the above

Ans – b)

Which one of the following is not an importance of controlling:

a) Accomplishing organisational goals
b) Facilitating coordination in action
c) Ensuring order and discipline
d) Clarity in working relationship

Ans – d)

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

Ans – d)

An efficient control system helps to:

a) Accomplish organisational objectives
b) Boost employee morale
c) Judge accuracy of standards
d) All of the above

Ans – d)

Standards can be set in the following terms:

a) Only Qualitative
b) Onley Quantitative
c) Both Qualitative and Quantitative
d) Neither Qualitative nor Quantitative

Ans – c)

Standards are set in:

a) Qualitative terms
b) Quantitative terms
c) Both a) and b)
d) None of these

Ans – c)

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

Ans – b)

Which function is prerequisite for controlling?

a) Planning
b) Organizing
c) Staffing
d) Directing

Ans – a)

Controlling function brings back the management cycle to which function?

a) Directing
b) Planning
c) Organizing
d) Staffing

Ans – b)

Which of the following is the part of controlling process?

a) Setting performance standards
b) Assignment of Duties
c) Taking Corrective action
d) All of the above

Ans – a), c)

Management by exception refers to:

a) Controlling significant deviations
b) Focus on key result areas
c) Check on each and every activity
d) Keep on control on everything

Ans – a)

Which one of the following is not the step in the process of controlling?

a) Comparison of actual performance with standards
b) Establishing Reporting Relationship
c) Setting Performance Standards
d) Taking Corrective Action

Ans – b)

An efficient control system helps in:

a) Accomplishing organisational goals
b) Judging accuracy of standards
c) Making efficient use of resources
d) All of these

Ans – d)

Identify the correct order in the following steps of controlling process:

1) Analysing Deviations
2) Setting Performance Standards
3) Comparison of Actual Performance with Standards
4) Measurement of Actual Performance

a) 4-3-2-1
b) 1-2-3-4
c) 1-4-3-2
d) 2-4-3-1

Ans – d)

An important project at AMB consultants is running behind schedule by a month. This has upset
their clients and might affect the reputation of the company in the long run. No managerial
action like assigning more workers, equipment or giving overtime has been able to solve the problem.
What managerial action may now be taken by company to avoid such a situation from arising
in the future?

a) Revise the schedule
b) Assigning additional workers and equipment to the project
c) Get permission for further overtime work
d) Both b) and c)

Ans – a)

Name the function of management which helps in formulation of future plans, in the light of
the problems that were identified and thus, helps in better planning in the future period.

a) Planning
b) Organising
c) Directing
d) Controlling

Ans – d)

Identify an important principle of management control in which only significant deviations
which go beyond the permissible limit should be brought to the notice of management.

a) Management by control
b) control by Exception
c) Critical Point Control
d) Both a) and b)

Ans – b)

Which of the following is the appropriate sequence of steps of controlling process:

a) Setting Performance Standards – Measurement of Actual Performance – Comparison of Actual
performance with standards – Taking Corrective Action – Analysing Deviations
b) Setting Performance Standards – Measurement of Actual Performance – Comparison of Actual
Performance with standards – Analysing Deviations – Taking Corrective Action
c) Setting Performance Standards – Comparison of Actual Performance with standards –
Measurement of Actual Performance – Analysing Deviations – Taking Corrective Action
d) Setting Performance Standards – Measurement of Actual Performance – Analysing Deviations

  • Comparison of Actual Performance with standards – Taking Corrective Action

Ans – b)

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Anurag Pathak

Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his youtube channel and can download the Android & ios app for free lectures.

Articles: 2015

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