Wednesday, June 24, 2015

CBSE Class 12 Business Studies - CH 8 - Controlling (V Short Q and A)


Very Short Q & A

Q1: Define Controlling.

Answer: It is a process of comparing actual performance with standards and finding deviations if any and taking corrective action.

Q2: Both quantitative and qualitative benchmarks are set to measure actual performance. Which element of controlling is referred here?

Answer: Comparing actual performance with standards.

Q3: What are the characteristics of controlling that are also possessed by planning?

Answer: Unity, continuity, flexibility and pervasiveness.

Q4: Is controlling a one-stop process or continuous process?

Answer: Controlling is a continuous process. It involves constant revision and analysis of standards resulting from the deviations between actual and planned performance.

Q5: What are standards?

Answer: Standards are the norms against which the performance is measured to find out the result.

Q6: Which two standards do you suggest for the production department?

   i. qualitative
   ii. quantitative

Q7: List any three advantages of controlling.

   i. Helps in decentralizing authority
   ii. increases managerial ability
   iii. ensures efficient use of scarce and valuable resources
Q8: List any two limitations of controlling.

  i. Difficulty in setting quantitative standards
  ii. Little control on external factors.
Q9: Why it is said that planning is meaningless without controlling?

Answer: In the absence of controlling, actual performance cannot not be measured and compared.

Q10: One manager in a company says "Controlling is forward looking" while another manager in the same company comments "controlling is looking back". Who is correct? Justify.
Q11: Why it is said "Controlling is looking back but works forward"?

Answer: A manager cannot control past. However under it, a manager tries to find out whether the work has been done according to the standards set and take corrective actions in future operations.

Q12: “Comparing the actual performance with the laid standards, finding out the deviations and taking corrective action is an important function of a function of management”. Name the function and explain the process.

Answer: Controlling

Q13: Control can work irrespective of any plans to set objectives and specify activities. State true or false.

Answer: False

Q14: What do you mean by 'deviation' in controlling process?

Answer: Deviation refers to the difference (or delta) between actual performance and standard work.
                                        Deviation = Actual Performance - Standard Work.

Q15: List any two essentials of a good control system.

Answer: i. Feedback
ii. Flexible
iii. Control should be objective.

Q16: Name the two situations in which corrective action is not required.

Answer: i.  Zero Deviation
        ii. Positive Deviation

Q17: Increase in 10% of postal charges may be an insignificant deviation while 5% increase in labour charges requires immediate attention of the management. Which element of controlling is reflected here?

Answer: Strategic/Critical Point Control.

Q18: Which concept suggests that only significant deviations go beyond permissible limits should be brought to the notice of management?

Answer: Management by exception.

Q19: List any three traditional control devices.

   i. Budgetary Control
   ii. Standard Costing
   iii. Break Even Analysis

Q20: Which technique of control is concerned with the contribution of actual and planed expenditure?

Answer: Budgetary control.

Q21: List any two modern (non-traditional) control devices.

   i. Zero base budgeting
   ii. Network Analysis (CPM and PERT)

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