NCERT Solutions for Class 12th: Ch 8 Controlling (MCQ and Short Questions)


Page No. 233

Multiple Choice

For the following, choose the right answer.
1. An efficient control system helps to
(a) Accomplishes organisational objectives
(b) Boosts employee morale
(c) Judges accuracy of standards
(d) All of the above
► (d) All of the above

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

3. Management audit is a technique to keep a check on the
performance of
(a) Company
(b) Management of the company
(c) Shareholders
(d) Customers
► (b) Management of the company
4. Budgetary control requires the preparation of
(a) Training schedule
(b) Budgets
(c) Network diagram
(d) Responsibility centres
► (b) Budgets
5. Which of the following is not applicable to responsibility
(a) Investment centre
(b) Accounting centre
(c) Profit centre
(d) Cost centre
► (b) Accounting centre

Page No. 234

Short Answer Type

1. Explain the meaning of controlling.


Controlling is one of the important functions of a manager. It means ensuring that activities in an organisation are performed as per the plans. It also ensures that an organisation’s resources are being used effectively and efficiently for the achievement of predetermined goals. Controlling is, thus, a goal-oriented function.

2. ‘Planning is looking ahead and controlling is looking back.’ Comment.


Planning and controlling are inseparable twins of management. It is the planning, which decides the controlling process on the one hand. On the other hand, it is controlling which provides sound basis for planning. In this way, planning and controlling both of them are interdependent. The controlling process and technique is decided by planning. It is the controlling, which directs and diverts the course of planning. Controlling invites our attention to those areas, where planning is necessary. Controlling provides statistical information for planning.

3. 'An effort to control everything may end up in controlling nothing.' Explain.


It is not possible to look over all thing at the same time thus when we want to control everything it may end up in controlling nothing. It is neither economical nor easy to keep a check on each and every activity in an organisation. Control should, therefore, focus on key result areas (KRAs) which are critical to the success of an organisation. These KRAs are set as the critical points. If anything
goes wrong at the critical points, the entire organisation suffers.

4. Write a short note on budgetary control as a technique of managerial control.


Budgetary control is a technique of managerial control in which all operations are planned in advance
in the form of budgets and actual results are compared with budgetary standards. This comparison reveals the necessary actions to be taken so that organisational objectives are accomplished. Budgeting offers the following advantages:
• It focuses on specific and time-bound targets and thus, helps in attainment of organisational objectives.
• It is a source of motivation to the employees who know the standards against which their
performance will be appraised and thus, enables them to perform better.
• It helps in optimum utilisation of resources by allocating them according to the requirements of different departments.
• Budgeting is also used for achieving coordination among different departments of an organisation and highlights the interdependence between them.
• It facilitates management by exception by stressing on those operations which deviate from budgeted standards in a significant way.

5. Explain how management audit serves as an effective technique of controlling.


Management audit serves as an effective technique of controlling as it refers to systematic appraisal of the overall performance of the management of an organisation. It is helpful in identifying the deficiences in the performance of management function. The benefit of management audit are:
• It helps to locate present and potential deficiencies in the performance of management functions.
• It helps to improve the control system of an organisation by continuously monitoring the performance of management.
• It ensures updating of existing managerial policies and strategies in the light of environmental changes.

NCERT Solutions of Chapter 8 Controlling (Long Anwer Questions)

Go Back To NCERT Solutions of Business Studies Class 12th

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