Controlling Exam Questions Class 12 Business Studies

Exam Questions Class 12

Please see Chapter 8 Controlling Exam Questions Class 12 Business Studies below. These important questions with solutions have been prepared based on the latest examination guidelines and syllabus issued by CBSE, NCERT, and KVS. We have provided Class 12 Business Studies Questions and answers for all chapters in your NCERT Book for Class 12 Business Studies . These solved problems for Controlling in Class 12 Business Studies will help you to score more marks in upcoming examinations.

Exam Questions Chapter 8 Controlling Class 12 Business Studies

Question: What is meant by controlling?
Answer: Controlling refers to comparison of actual performance with the planned performance and taking corrective actions, in case of deviations between actual and planned performance.

Question: Why is it said that controlling is “looking back’? State.
Answer: Controlling is a backward-looking function as it measures and compares actual performance with standards fixed in the past.

Question: State any four importance of controlling.
Answer: 1. Controlling helps in achieving organisational goals
2. Controlling judge accuracy of standards
3. Controlling makes efficient use of resources
4. It improves employee’s motivation.

Question: State the points of controlling process.
Answer: The points of controlling process are:

  • Setting up Standards: The standards of performance are set which serve as the criteria against which actual performance will be measured.
  • Measuring Performance: The measurement of actual performance is done on the basis of pre-determined standards. It tells the manager whether the work has been done according to the plan or not.
  • Comparing Performance against standard: The measuring of actual performance is compared with the standards to find out the deviations.
  • Analyzing Deviations: Deviations are analysed for their causes through Critical Point Control and Management by Exception.
  • Taking Corrective Measures: Corrective action is taken if deviations go beyond the acceptable limits.
  • Feedback : After and taking corrective measures a feedback report is prepared.

Question: Explain how ‘Management by Exception’ helps in controlling process.
Answer: According to this principle, control will be effective only if the manager focuses his attention on more important exceptions. Here important exceptions mean the especially good or especially bad deviations. It means that the manager should take corrective action, in respect of those deviations, which are either too good or too bad. By taking care of important deviations both time and efforts are saved.

Question: How controlling is an all pervasive function?
Answer: Controlling is not the task of top level managers only but managers working at all the levels i.e. top, middle and operational level perform controlling function. Its need is everywhere and hence it is an pervasive function.

Question: Mr. Ankit is the chief manager in a well known MNC, producing shoes. He called the production manager of his unit and told him to keep a constant watch on all the activities of his respective unit so that there is no possibility of adverse results. As long as the company runs its operation, employees at all levels will adopt it to achieve results.
(i) Identify the function of management referred above.
(ii) Describe its three features
Answer: (i) Controlling
(ii) features :
a. Goal-oriented
b. Continuous process
c. Pervasive function

Question: Suppose you are a manager in a car manufacturing company. It is reported that postal expenses have increased by 10% and cost of raw material is increased by 2%. Which of the two deviations is more critical to you? It is related to which concept of controlling?
Answer: 1. Rise in cost of raw-material @ 2% is more important.
2. It is related to “Critical Point Control”.

Question: What do you mean by ‘Deviation’? Explain with the help of an example.
Answer: Deviation refers to difference between actual performance and plan performance. For example, if plan is to producing 100 units and actually only 80 units are produced, then deviation = 100-80=20 units. The deviation may be a positive or a negative deviation.

Controlling Exam Questions Class 12 Business Studies