Chapter Exam

Chapter 8: Controlling — Online MCQ Test

Q: What is the first step in the controlling process?

Answer: B. Setting standards — Controlling begins with setting standards against which actual performance is measured. Without standards, comparison and corrective action are not possible.

Q: Which of the following is a traditional technique of controlling?

Answer: A. Budgetary control — Budgetary control is a traditional control technique because it compares actual performance with predetermined budgets. PERT, management audit, and similar methods are modern techniques.

Q: A company fixes a target of producing 10,000 units per month. This target is an example of:

Answer: B. Standard — A target fixed in advance serves as a standard for comparison. Standards are the basis of controlling.

Q: A manager says, 'If we had not controlled our operations last quarter, we would not have known that wastage was increasing.' This statement most clearly highlights which benefit of controlling?

Answer: B. It helps in detecting deviations early — Controlling helps managers discover deviations such as wastage before they become serious. It does not eliminate all problems, but it reveals them in time for action.

BUSINESS STUDIES · Grade 12 · CBSE(NCERT)

Practice Chapter 8: Controlling with a free chapter-wise online MCQ test for CBSE(NCERT) Grade 12 BUSINESS STUDIES. This chapter covers: This chapter covers controlling concepts importance relationship between planning and controlling process steps and traditional modern controlling techniques.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 8: Controlling — Important Questions & Answers (FAQ)

Frequently asked questions from CBSE(NCERT) Grade 12 BUSINESS STUDIES — Chapter 8: Controlling, with answers and explanations. These are sample questions; the exam has its own separate question set.

What is the first step in the controlling process?

A. Taking corrective action
B. Setting standards ✓
C. Measuring actual performance
D. Comparing performance with standards

Answer: B. Setting standards
Controlling begins with setting standards against which actual performance is measured. Without standards, comparison and corrective action are not possible.

Which of the following is a traditional technique of controlling?

A. Budgetary control ✓
B. PERT
C. Break-even analysis
D. Management audit

Answer: A. Budgetary control
Budgetary control is a traditional control technique because it compares actual performance with predetermined budgets. PERT, management audit, and similar methods are modern techniques.

A company fixes a target of producing 10,000 units per month. This target is an example of:

A. Actual performance
B. Standard ✓
C. Deviation
D. Corrective action

Answer: B. Standard
A target fixed in advance serves as a standard for comparison. Standards are the basis of controlling.

A supervisor compares the number of defective units produced with the acceptable defect rate and then identifies reasons for excess defects. Which step is being performed after comparison?

A. Setting standards
B. Measuring actual performance
C. Analysing deviations and taking corrective action ✓
D. Formulating policies

Answer: C. Analysing deviations and taking corrective action
Once performance is compared with standards, the manager analyses deviations and acts to correct them. This is the final and most important part of controlling.

A manager says, 'If we had not controlled our operations last quarter, we would not have known that wastage was increasing.' This statement most clearly highlights which benefit of controlling?

A. It prevents the need for planning
B. It helps in detecting deviations early ✓
C. It guarantees no wastage will occur
D. It replaces coordination

Answer: B. It helps in detecting deviations early
Controlling helps managers discover deviations such as wastage before they become serious. It does not eliminate all problems, but it reveals them in time for action.