MCQ Questions for Class 12 Business Studies: Ch 8 Controlling
1. Controlling is __________ aspect of management.
(a) Physical
(b) Practical
(c) Mental
(d) Theoretical
► (b) Practical
2. What is the last step in controlling process?
(a) Setting Performance Standards
(b) Taking corrective action
(c) Comparing actual performance with standards
(d) Measurement of actual performance
► (b) Taking corrective action
3. What will be the corrective action for defective machinery?
(a) Sell at the book value
(b) Sell at a loss
(c) Sell at a profit
(d) Repair or Replace the machine
► (d) Repair or Replace the machine
4. Which of the following is not a technique of controlling?
(a) Break even analysis
(b) Budget
(c) Managerial Audit
(d) Cash Flow Statement
► (d) Cash Flow Statement
5. What is the first step in controlling process?
(a) Comparing actual performance with standards
(b) Analysing deviations
(c) Setting performance standards
(d) Measurement of actual performance
► (c) Setting performance standards
6. What are the techniques of measurement of performance?
(a) Performance reports
(b) Sample Checking
(c) Personal Observation
(d) All of the above
► (d) All of the above
7. Technological upgradation is the best corrective action in case of _________
(a) Defective machinery
(b) Defective material
(c) Obsolete Machinery
(d) None of the above
► (c) Obsolete Machinery
8. What will be the corrective action for defective material?
(a) Change in Quantity
(b) Change in Price
(c) Change in Quality Specifications for the material used
(d) None of the above
► (c) Change in Quality Specifications for the material used
9. An efficient control system helps to
(a) Judges accuracy of standards
(b) Accomplishes organisational objectives
(c) Boosts employee morale
(d) All of the above
► (d) All of the above
10. Planning without controlling is ________
(a) Cheap
(b) Effective
(c) Meaningless
(d) Costly
► (c) Meaningless
11. If there is lack of motivation among employees, suggest one better corrective action
(a) New Recruitment
(b) Providing Suitable incentives
(c) Deal Strictly
(d) Warning to employees
► (b) Providing Suitable incentives
12. Why actual performance is compared with standards?
(a) To take corrective action
(b) To improve the quality of material
(c) To change the machinery
(d) None of the above
► (a) To take corrective action
13. Controlling is _______________
(a) Economical
(b) Costly
(c) Free
(d) Very Cheap
► (b) Costly
14. Which of the following is a limitation of controlling?
(a) Controlling improves employee motivation
(b) Controlling is goal oriented
(c) Controlling is expensive
(d) Controlling ensures order and discipline
► (c) Controlling is expensive
15. Which of the following is a technique of controlling?
(a) Managerial Audit
(b) Break even analysis
(c) Budget
(d) All of the above
► (d) All of the above
16. Controlling function of an organisation is
(a) Forward as well as backward looking
(b) Backward looking
(c) Forward looking
(d) None of the above
► (a) Forward as well as backward looking
17. When actual performance is better than the standard performance it is called _____
(a) Negative Deviation
(b) Poor Deviation
(c) Positive Deviation
(d) None of the above
► (c) Positive Deviation
18. Controlling is necessary for ____________
(a) Medium Level Enterprise
(b) Small Scale Enterprise
(c) Large Scale Enterprise
(d) All of the above
► (d) All of the above
19. There is one popular saying that Planning is looking _________ while controlling is looking ________
(a) Back, Ahead
(b) Ahead, Back
(c) Future, Present
(d) None of the above
► (b) Ahead, Back
20. Budgetary control requires the preparation of
(a) Budgets
(b) Network diagram
(c) Responsibility Centres
(d) Training schedule
► (a) Budgets
21. Which of the following is not correct?
(a) Controlling is goal oriented
(b) Controlling is pervasive function
(c) Controlling can prevent deviation
(d) Controlling ensures order and discipline
► (c) Controlling can prevent deviation
22. Which of the following is not applicable to responsibility accounting
(a) Accounting centre
(b) Cost centre
(c) Profit centre
(d) Investment centre
► (a) Accounting centre
23. Management control is done by the __________________
(a) Managers at Top Level
(b) Managers at Middle Level
(c) Managers at Lower Level
(d) All of the above
► (d) All of the above
24. The main focus of controlling is on ________________
(a) Competition
(b) External Forces
(c) Results
(d) Business Environment
► (c) Results
25. 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