Controlling Class 12 MCQ Questions With Answers
Controlling MCQ Chapter 8 Class 12 Question 1.
Name the function of management which helps in the 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
Answer:
(D) Controlling
Explanation:
Controlling means ensuring that activities in an organisation are performed as per the plAnswer: Controlling also ensures that an organisation’s resources are being used effectively and efficiently for the achievement of predetermined goals.
Question 2.
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)
Answer:
(B) Control by exception
Explanation:
Management by exception, which is often referred to as control by exception, is ‘ an important principle of management control based on the belief that an attempt to control everything results in controlling nothing.
Question 3.
Which of the following steps in the Controlling process state that comparison becomes easier when standards are set in quantitative terms ?
(A) Analysing deviations
(B) Measurement of actual performance
(C) Comparing actual performance with standards
(D) Setting performance standards
Answer:
(C) Comparing actual performance with standards
Explanation:
This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results. Comparison becomes easier when standards are set in quantitative terms.
Question 4.
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 the company to avoid such a situation from arising in 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)
Answer:
(A) Revise the schedule
Question 5.
Controlling means ensuring that activities in an organisation are performed as per the …………. .
(A) Plans
(B) Goals
(C) Resources
(D) None of these
Answer:
(A) Plans
Explanation:
Once a plan becomes operational, controlling is necessary to monitor the progress, measure it, discover deviations and initiate corrective measures to ensure that events conform to plAnswer: Thus, controlling ensures that the activities in an organisation are performed as per the plAnswer:
Question 6.
What should be the ‘focus point’ for a manager while controlling, as controlling at each and every step is not possible?
(A) Special area
(B) Key result area
(C) Normal area
(D) None of these
Answer:
(B) Key result area
Explanation:
Control should focus on key result areas (KRAs) which are critical to the success of an organisation. These KRAs are set as the critical points.
Question 7.
An effort to control everything may end up in controlling nothing is related to:
(A) Critical Point Control ”
(B) Management by Exception
(C) Management by Information
(D) Key Result Areas
Answer:
(B) Management by Exception
Explanation:
Management by exception, which is often referred to as control by exception, is an important principle of management control based on the belief that an attempt to control everything results in controlling nothing.
Question 8.
What should be the ‘focus point’ for a manager while controlling, as controlling at each and every step is not possible?
(A) Analysing deviations
(B) Measurement of actual performance
(C) Comparing actual performance with standards
(D) Setting performance standards
Answer:
(A) Analysing deviations
Explanation:
Some degree of deviation in performance can be expected in all activities. Thus, it is essential to determine the permissible range these deviations.
Question 9.
“Employee know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised, which inturn help them to give better performance.”
Which importance of controlling is highlighted above?
(A) Facilitating coordination in action
(B) Making efficient use of resources
(C) Accomplishing organisational goals
(D) Improves employee motivation
Answer:
(D) Improves employee motivation
Explanation:
Controlling sets up some standard of employees and employees knows the standards against which their performance will be measured. It thus, increases employee otivation.
Question 10.
Match the FUNCTIONAL AREA in Column I with their respective STANDARDS set to gauge performance in Column II, as a part of the controlling function.
| Column I | Column II |
| (a) Marketing | (i) Quality |
| (b) Production | (ii) Liquidity |
| (c) Human Resource Management | (iii) Advertising expenditures |
| (d) Finance and Accounting | (iv) Labour absenteeism |
(A)(i), (iii), (iv), (ii)
(B) (iii), (i), (iv), (ii)
(C) (iv), (ii), (i), (iii)
(D) (iii), (i), (ii), (iv)
Answer:
(B) (iii), (i), (iv), (ii)
Assertion and Reason based MCQs
Directions: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Question 1.
Assertion (A): Controlling ensures that resources are used in the most effective and efficient manner.
Reason (R): In controlling, each activity is performed in accordance with predetermined standards and norms.
Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Explanation:
A good control system enables management to verify whether the standards set are accurate and objective. By exercising control, a manager seeks to reduce wastage and spoilage of resources.
Question 2.
Assertion (A): A small enterprise cannot afford to install an expensive control system.
Reason (R): Control system loses some of its effectiveness when standards cannot be defined in quantitative terms.
Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Explanation:
Control is a costly affair as it involves a lot of expenditure, time and effort.A small enterprise cannot afford to install an expensive control system. It cannot justify the expenses involved. Managers must ensure that the costs of installing and operating a control system should not exceed the benefits derived from it.
Question 3.
Assertion (A): The controlling function measures progress towards the organisational goals.
Reason (R): Controlling guides the organisation and keeps it on the right track so that organisational goals might be achieved.
Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Explanation:
Controlling as a function of management refers to the evaluation of actual performance of work against planned or standard performance and taking the corrective action, if necessary.
Question 4.
Assertion (A): Controlling creates an atmosphere of order and discipline in the organisation.
Reason (R): Controlling helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities.
Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Explanation:
Through controlling, company can track dishonest employees by using tools such as computer monitoring as a part of their control system.
Case-Based MCQs
I. Read the following text and answer the questions given below:
Vinay was the Chief Operating Officer of ‘Easy Solutions Ltd.’, a company providing advanced software solutions to Indian Defence Services. They had been carrying on business successfully for the last twelve years and earning enough profits. But from the last one year, they realised that though the business is getting big orders which are being fulfilled on time, even then the revenues kept on decreasing. Vinay was not able to find out where the problem was. He started keeping a close check on the progress of activities as he could sense that something was wrong.
He wanted to take some action before any major damage could be done to the business. Vinay appointed a cyber security expert who monitored the company’s processes and found out that the computer operator was deleting the entries from the computers and pocketing the revenues. He was caught and handed over to the police. This created an atmosphere of order and discipline in the organisation and helped in minimizing dishonest behaviour on the part of the employees.
Question 1.
Which management function proved helpful in creating an atmosphere of order and discipline in the organisation and helped in minimizing dishonest behaviour on the part of the employees?
(A) Planning
(B) Organizing
(C) Directing
(D) Controlling
Answer:
(D) Controlling
Explanation:
Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities.
Question 2.
What did the measurement of performance reveal?
(A) The company was earning enough profits.
(B) Declining revenues despite getting big orders which were being fulfilled on time.
(C) The company was running successfully.
(D) All of the above.
Answer:
(B) Declining revenues despite getting big orders which were being fulfilled on time.
Question 3.
What did the analysis by Vinay reveal ?
(A) Nothing was wrong.
(B) The computer operator was deleting the entries from the computers and pocketing the revenues.
(C) Vinay was not able to find out where the problem was.
(D) None of the above.
Answer:
(B) The computer operator was deleting the entries from the computers and pocketing the revenues.
Question 4.
What corrective action did Vinay take?
(A) He did not take any action as no major damage was done.
(B) Computer operator was caught and handed over to the police.
(C) Computer operator was warned with dire consequences.
(D) None of the above.
Answer:
(B) Computer operator was caught and handed over to the police.
II. Read the following text and answer the questions given below:
Sameer Sweets, a renowned name for quality sweets since 1950 had maintained its standards ever since then. It is an ancestral sweet shop and Sana, the present owner of Sameer Sweets, is the third generation entrepreneur who has taken the charge of the sweet shop from her father. Sana has been handling her responsibilities exceptionally well except that she was worried as the sales had declined during the last three months despite her best efforts and involvement in business.
When she enquired from the Sales Manager, Ajay, he reported that there were some complaints about the quality of sweets from many customers recently. Therefore, Sana ordered for sample checking of sweets by her quality control team. The team investigated and reported to Sana. She realized that during peak demand, quality was being compromised by her team to satisfy the customers. She decided to invest more capital in order to increase production to be able to meet the increasing demand especially during peak seasons like festivals and marriage catering.
Question 1.
‘…a renowned name for quality sweets since 1950 had maintained its standards ever since then.’ Which step does this represent in the controlling process?
(A) Setting performance standards
(B) Measurement of actual performance
(C) Comparison of actual performance with standards.
(D) Analysis of deviations
Answer:
(A) Setting performance standards
Explanation:
Standards are the criteria against which actual performance would be measured.Thus, standards serve as benchmarks towards which an organisation strives to work, Standards can be set in both quantitative as well as qualitative terms.
Question 2.
‘.. .sales had declined during the last three months.’ Which step does this represent in the controlling process?
(A) Measurement of actual performance
(B) Comparison of actual performance with standards
(C) Analysis of deviations
(D) Taking corrective action
Answer:
(A) Measurement of actual performance
Explanation:
Performance should be measured ’ in an objective and reliable manner. There are several techniques for measurement of performance.
Question 3.
‘…Sana ordered for sample checking of sweets by her quality control team.’ Which step does this represent in the controlling process?
(A) Measurement of actual performance
(B) Comparison of actual performance with standards
(C) Analysis of deviations
(D) Taking corrective action
Answer:
(C) Analysis of deviations
Explanation:
Some deviation in performance can be expected in all activities. It is therefore, important to determine the acceptable range of deviations. Also, deviations in key areas of business need to be attended more urgently as compared to deviations in certain insignificant areas. Critical point control and management by exception should be used by a manager in this regard.
Question 4.
‘She decided to invest more money in order to increase production to be able to meet the increasing demand….’ Which step does this represent in the controlling process?
(A) Measurement of actual performance
(B) Comparison of actual performance with standards
(C) Analysis of deviations
(D) Taking corrective action
Answer:
(D) Taking corrective action
Explanation:
No corrective action is required when the deviations are within acceptable limits. However, when the deviations go beyond the acceptable range, especially in the important areas, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished,
III. Read the following text and answer the questions given below:
A critical point control (CPC) approach is followed by McDonald in the cooking and handling process so that any food safety threat can be prevented, eliminated, or reduced to an acceptable level. Hence, continuous monitoring of activities are undertaken to ensure that the process is right at each critical point control. The main principle followed for cooking at McDonald is “less amount many time” which can ensure the high quality and high fresh level of the food.
For instance, if four hamburgers have to be made, a worker cannot cook all the four hamburgers at one time. The time figured out for making one hamburger is one hundred and forty-five seconds. Moreover, nearly all foods in the McDonald have the specific holding time, the holding time for hamburgers is ten minutes and for french fries is seven minutes. If it is not sold within that time it is thrown away. Also, the temperature of the milk sent by the supplier must be under 4° C, otherwise, it will be returned.
Question 1.
Which of the following steps involved in the controlling process is discussed in the above lines?
(A) Analysing deviation
(B) Taking corrective action
(C) Both (A) and (B)
(D) Setting Performance Standards
Answer:
(C) Both (A) and (B)
Question 2.
Which of the following statements is true with respect to critical point control?
(A) Control focus on key result areas
(B) CCPs may be located at any point in the food production plant where hazards need to be prevented, eliminated, or reduced to acceptable levels.
(C) It helps in saving time, and thus manager can focus on other relevant issues.
(D) All of the above.
Answer:
(D) All of the above.
Explanation:
Critical point control means keeping focus on some key areas and if there is any deviation in these key areas, and then it must be attended urgently. Key areas are those which have impact on whole organisation.
Question 3.
Identify the point which highlights the importance of the controlling function in the above text.
(A) Accomplishing organisational goals
(B) Making efficient use of resources
(C) Judging accuracy of standards
(D) All of the above
Answer:
(D) All of the above
Question 4.
Which feature of controlling is highlighted in the above text?
(A) Control is a continuous process.
(B) Control is all pervasive.
(C) Action is the essence of control.
(D) Control is forward looking.
Answer:
(A) Control is a continuous process.
Explanation:
Controlling is an ongoing and dynamic function of management. It involves a continuous review of performance and is not a one-time exercise. The period of control normally depends upon the nature of work, the amount of work and the policies of management.