The important questions & answers of CBSE Class 12 Business Studies Chapter 8 (Controlling) are given here. Students who will be appearing for CBSE Board Exams 2020 must go through the long & short set of questions. Practicing these questions will help in the preparation of the upcoming board exams.
Q1- What are the steps involved in the process of Controlling?
Ans- The steps that are involved in the controlling process are:
- Measuring Actual Performance
- Setting Standards
- Analyzing Deviation
- Comparing the Performances
Q2- Explain why planning is an empty exercise without controlling function?
Ans: Planning is considered to be an empty exercise without controlling function because monitoring and implementing the formulated plan is based on the controlling function.
Q3- Discuss how the management audit serves as an effective technique of controlling.
Ans- The following points show the effectiveness of the management audit on controlling:
- Improves Efficiency
- Adapting to Environmental Changes
- Identification of Deficiencies
- Enhances Coordination
Q4- Mention three points highlighting the importance of Controlling.
Ans- Points given below highlights the importance of controlling:
- Efficient use of resources
- Improving employees motivation
- Helps in accomplishing company goals
Q5- What is Controlling.
Ans- Controlling is to ensure that activities in an organisation are performed as per the plans.
Q6- ‘Planning is looking ahead and controlling is looking back’. Explain
Ans- Planning is more of a psychological process which refers to thinking and deciding in advance regarding future goals. While Controlling, on the other hand, means an assessment of the organisations past performance. It also includes evaluating them against the set standards, which make controlling more of a backward-looking function.
Q7- Mention the formula of Return on Investment.
Ans- The formula is Return on Investment = Cost Investment/Net Income.
Q8- Explain briefly the relationship between planning and controlling.
Ans- Planning and controlling are interrelated functions of management. Planning refers to the psychological process which involves thinking and deciding about what is to be done and how it needs to be done. While controlling is the process of managing and evaluating the work done as per the standards and to take corrective measures in case there are any deficiencies.
Q9- Mention the problems that are faced by an organisation in implementing an effective control system.
Ans- Go through the following points which highlights the problems faced by an organisation while implementing an effective controlling system:
- External Factors:
- Expensive Process
- Complication While Setting Standards
- Resistance from Employees
Q10- Give a short summary of budgetary control as a method of managerial control.
Ans- Budgeting Control is an operation of management responsible for monitoring budget, service in a given accounting year and control cost. It helps the management in setting a regulated performance and financial goal and helps the organisation in getting the desired results.