KOTHARI INTERNATIONAL SCHOOL, NOIDA

GRADE – 12 BUSINESS STUDIES

CONTROLLING

Q1. Controlling is needed at ________ levels. (1)

(a) Top level
(b) Middle level
(c) Lower level
(d) All

Q2. Controlling is related to ________ . (1)

(a) Results
(b) Individuals
(c) Things
(d) Managers

Q3. First step in the controlling process is ________ . (1)

(a) Taking corrective action
(b) Analysing the deviations
(c) Determining standards
(d) Measurement of actual progress

Q4. Cost at ™100 per unit is an example of ________ standard. (1)

(a) Quantitative
(b) Qualitative
(c) Both the above
(d) None of the above

Q5. Chief basis of standards is ________ . (1)

(a) Quantity
(b) Quality
(c) Time
(d) All the above

Q6. ________ standard is associated with production. (1)

(a) Quality
(b) Quantity
(c) Quality and Quantity
(d) Labour

Q7. Strike is ________ cause of deviation. (1)

(a) Human
(b) Uncertain conditions
(c) Various hindrances
(d) Defective standards

Q8. Hindrance in the supply of electricity is ________ cause of deviation. (1)

(a) Human
(b) Uncertain conditions
(c) Various hindrances
(d) Defective standards

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Q9. Which function of management is controlling? (1)
(a) First
(b) Second
(c) Third
(d) Last

Q10. ‘Planning in the absence of controlling is meaningless’. What does this (1)
statement indicate in respects of both?
(a) Only planning is essential
(b) Only controlling is essential
(c) Both are essential
(d) Both are unnecessary

Q11. ‘Controlling in the absence of planning is blind’ what does this statement (1)
indicate in respect of both?
(a) Only planning is essential
(b) Only controlling is essential
(c) Both are essential
(d) Both are unnecessary

Q12. When does the measuring of actual performance become meaningful? (1)
(a) When the standards have been set
(b) When the standards have not been set
(c) When standards are more than the need
(d) When standards are less than the need

Q13. Which of the following is associated with the marketing standard? (1)
(a) Sale expenses
(b) Capital expenses
(c) Quantity
(d) Dispute Rate
Q14. Which of the following is related to the finance and accounting standard? (1)
(a) Sale expenses
(b) Capital expenditure
(c) Quantity
(d) Dispute late

Q15. Which of the following is associated with the Personnel Management? (1)
(a) Individual production
(b) Target of sales persons
(c) Absenteeism Rate
(d) Flow of capital

Q16. Which of the following qualities the standards should have? (1)
(a) Achievable
(b) Measurable
(c) Flexible
(d) All the above

Q17. Which of the following types a deviation can be? (1)

(a) Negative
(b) Positive
(c) None (Nil)
(d) All the above

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Q18. Which deviation is the most important? (1)
(a) Negative
(b) Positive
(c) None (Nil)
(d) All the above

Q19. ________ is not included in the controlling process. (1)

(a) Measurement of actual performance.
(b) Comparison of actual performance with standards.
(c) Doing work of financial management.
(d) Analysing deviations

Q20. What type of nature the control has? (1)

(a) Positive Approach
(b) Negative Approach
(c) Both of the above
(d) None of the above

Q21. An efficient control system helps to: (1)

(a) Achieve objectives
(b) boost Employee’s Morale
(c) Efficient use of Resources
(d) All of the above

Q22. Is controlling ‘the end’ of management functions cycle? Give reason in support (1)
of your answer.

Q23. It helps to minimize dishonest behavior on the part of the employees by keeping (1)
a close check on their activities. Mention the importance of controlling indicated
here.

Q24. What is feedback in controlling? (1)

Q25. What is the significance of standard? (1)

Q26. What is deviation in controlling? (1)

Q27. Which two steps in the process of control are concerned with compelling events (1)
to conform to plan?

Q28. What do you mean by ‘key result area (KRA’s) in the context of controlling? (1)

Q29. Only increase in labour cost beyond 2% should be brought to the notice of the (1)
management. Which principle of control this statement has highlighted?

Q30. Which function of management ensures that actual conform to planned (1)
activities?

Q31. Feedback in controlling means……………… (1)

Q32. Name the term used to denote the situation under which standards performance (1)
and actual performance differ.

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Q33. Give one difference between Management by Exception and Critical Point (1)
Control.

Q34. Give meaning of the term ‘Deviation’ as used in the control function of (1)
management.

Q35. If normal wastage of stationery has increased by 2% and normal wastage of raw (3)
material has also increased by 2%. Which will affect your attention? Why?

Q36. “Controlling is blind without Planning’ Comment. (3)

Q37. “Controlling is the last function of management”. Comment. (3)

Q38. ‘If you try to control everything, you may end up controlling nothing”. Explain. (3)

Q39. Explain first three steps involved in the process of Controlling. (3)

Q40. Controlling everything leads to controlling nothing. Comment stating the (3)
importance of this concept.

Q41. Sita, Geeta and Babita Ltd is engaged in manufacturing machine components. (4)
The target of production is 250 units per day per worker. The company had been
successfully attaining this target until two months ago. Over the last two
months, it has been observed the daily production varies between 200-210 units
per worker.

i) Name the function of management and identify the step in the process
of this function which helped in finding out that the actual production
of a worker is less than the set target.
ii) Explain the importance of the function.

Q42. Oracle Creations Ltd. was formed with the purpose of manufacturing Indian (4)
wedding dresses. To have better controlling system, the company organized a
workshop in which a leading professor of IIM Ahemdabad was called. He quoted
‘Analyzing deviation is one of the steps in the process of one of the functions of
management.

i) Explain the two ways through which the management analyze the
deviations.
ii) Identify the values being emphasized in the two ways identified in (i)
above.

Q43. “An ideal control technique is one that check every bit of performance” (4)
comment.

Q44. You are a management Guru. You have been asked by a business firm to make (4)
its managers understand the importance of controlling. Give any 4 arguments.
Q45. Tyre Centre Ltd. Manufactures tubeless radial tyres for cars. It has laid down the (4)
quality standards as follows:

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 Weight -6.5 Kgs
Content of Rubber- 90%
Steel wiring used for making beading of the tyre-10%
Depth- 8mm to 10 mm

After manufacturing some tyres, they adopted a system which would enable
them to verify whether the above standard set was accurate or not. Later they
found out that it wasn’t accurate and they re- processed it.

i) Identify and explain the management function referred to in the above

para.
ii) Give 3 importance of the function.

Q46. A large company making computers has conducted time and motion studies and (5)
found that on an average a worker can assemble 10 computers a day. The target
volume is to assemble 1000 units a day. In spite of the best efforts, only 800
units are being assembled in a day. To find out the reasons, the company
installed CCTV cameras and decided to compare the actual output of ach
worker. They found some workers were busy in gossiping throughout the day.
The company also has a practice of throwing waste into drains, only after
purifying it.

i) Identify the function of management discussed here?

ii) State those steps of the above function which have been discussed
here. Quote the lines.
iii) State one importance of the said function?
iv) State one Value Company is following?

Q47. ‘i-phone India Ltd.’ is a manufacturer of advanced category of mobile phones. (5)
The company trained its engineers from Japan. It markets its mobile phones
domestically as well as internationally. The company had a substantial market
share and had a loyal customer following because of quality of its i-phone. From
the last financial year the company had been unable to achieve its targets
because of competition in the market. The company is planning to revamp its
controlling system.

i) Identify the concepts of management involved in the above para.

ii) State the steps of the revamped controlling process to be followed by
the company to solve this problem.
iii) Also, state any one value which the company wants to communicate to
the society.

Q48. Following are some behavior that you and others might engage in on the job. (5)
For each item, choose the behavior that management must keep a check to
ensure an efficient control system.

i) Biased performance appraisal.

ii) Using company’s stationery for personal use.
iii) Asking a person to violate company’s rule.
iv) Calling office to take a day off when one is sick.

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 v) Overlooking boss’s error to prove loyalty
vi) Claiming credit for someone else’s work
vii) Reporting a violation on noticing it.
viii) Falsifying quality reports
ix) Taking longer than necessary to do the job.
x) Setting standards in consultation with workers

You are requested to suggest the management how the undesirable behavior can
be controlled.

Q49. The manager of Atlas cycles have fixed a sales target of 200cr.To achieve they (5)
had several options: Whether they should give more attention to
advertisements, or the price of the product should be reduced, whether packing
should be improved upon or the customers should be given better after sales
services. After deliberating at all the above options she concluded that paying
more attention on advertisements will help in achieving the targets. She did the
same and constantly kept a close watch on whether desired results were
obtained or not.

i) Identify the management function in the above paragraph?

ii) Write the steps she has followed in the above function of
management, by quoting the relevant lines.

Q50. Y Ltd. Produce’s safety pins on a mass scale. The co.’s policy is that at the most (5)
2% of the daily production could be defective over a three months period it has
been observed that 8-10% of the production is defective.

Identify the managerial function required to correct the above situation. Briefly
explain the procedure to be followed for the purpose.

Q51. X Ltd. is engaged in manufacturing machine components. The target production (5)
is 200 units per day. The company had been successfully attaining this target
until two months ago. Over the last two months, it has been observed that daily
production varies b/w 150 & 170 units.

Identify the management function to rectify the above situation. Briefly state the
procedure to be followed so that the actual production may come up to the
target production.

Q52. If planning is done carefully and accordingly other functions of management are (5)
going in the right direction, then there is no need of the controlling functions of
management’. Do you agree with the statement? Give reasons in support of your
answer?

Q53. How are planning and controlling interdependent and inter-linked? (5)

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