NCERT Solutions for Class 12 Business Studies Chapter 8 Controlling, Download PDF

NCERT Solutions for Class 12 Business Studies: Jagran Josh brings to you complete NCERT Solutions for Class 12 Business Studies Chapter 8, Controlling. You can also find a PDF download link for the complete NCERT Solutions for Class 12 Controlling. These solutions have been prepared by our subject experts as per the latest CBSE guidelines and Revised CBSE Syllabus 2023-2024.

This chapter from the Business Studies NCERT textbook teaches students about controlling as a function of management. It also presents some questions at the end of the chapter that are significant for scoring good marks in upcoming CBSE Board Examinations 2024. Some important topics from CBSE’s Board Examinations point of view are:

• Importance of controlling
• Limitations of controlling
• Relationship  between planning and controlling
• Process of controlling
• Fair idea about measures to check performance

Here, NCERT Solutions for Class 12 Business Studies Chapter 8 all exercise is present in PDF download format. The access to the PDF is absolutely free for students. 

Related:

 CBSE Class 12 Business Studies Revised Syllabus 2023-2024 (PDF)

CBSE Class 12 Business Studies Sample Paper 2023-2024(PDF)

NCERT Solutions for Class 12 Business Studies Chapter 8, Directing:

Very Short Answer Type

 1. State the meaning of controlling.

Answer. Ensuring that activities in an organization are performed as per the plans is called controlling. It also refers to using the resources of the company effectively and efficiently for the achievement of pre-determined goals. All levels of management perform this function to keep control over activities in their areas.

2. Name the principle that a manager should consider while dealing with deviations effectively.

Answer. Management by exception is the principle that a manager should consider while dealing with deviations effectively. It is also referred to as control by exception. It is based on the belief that an attempt to control everything results in controlling everything. Thus, if the plans laid down a 2 percent increase in labor cost as an acceptable range of deviation in a manufacturing organization, only an increase in labor cost beyond 2 percent should be brought to the notice of the management. However, in case of major deviation from the standard (say, 5 percent), the matter has to receive immediate action from management on a priority basis.

3. State any one situation in which an organisation’s control system loses its effectiveness.

Answer. Inadequacy of resources is one such situation in which an organization’s control system loses its effectiveness. Insufficient resources can lead to delays in the completion of tasks and sometimes might leave the tasks incomplete.

4. Give any two standards that can be used by a company to evaluate the performance of its Finance and accounting departments.

Answer. Two standards that can be used by a company to evaluate the performance of its Finance & Accounting department are flow of capital and liquidity.

5. Which term is used to indicate the difference between standard performance and actual performance?

Answer. Deviation is the term used to indicate the difference between standard performance and actual performance.

Short Answer Type

1. ‘Planning is looking ahead and controlling is looking back.’ Comment.

Answer. Planning is the process of formulating actions to be done in the future for the fulfillment of goals and objectives. Since planning is done on the basis of future predictions, it can be said that planning is looking ahead. Controlling refers to ensuring that laid-out plans are being executed effectively and efficiently. Since controlling involves looking back at the laid-out plans and comparing whether the activities under operation are the ones that have been planned, it can be said that controlling is looking back. Planning is referred to as a forward-looking function since, on the basis of planning, the future of the company is decided. Controlling is a backward-looking function because all the decisions are taken as per the experience. On the other hand, planning is done on the basis of past experiences. All the previous problems faced have to be kept in mind. It can also be said that controlling is looking ahead since it involves the amendment of future plans.

2. 'An effort to control everything may end up in controlling nothing.’ Explain.

Answer. The principle of ‘Management of exception’ states that an effort to control everything may end up in controlling nothing. It says that only significant deviations that go beyond the permissible limits should be brought to the notice of management. Thus, if the plans laid down a 2 per cent increase in labor cost as an acceptable range of deviation in a manufacturing organization, only an increase in labor cost beyond 2 percent should be brought to the notice of the management. However, in case of major deviation from the standard (say, 5 percent), the matter has to receive immediate action from management on a priority basis.

3. Explain how management audit serves as an effective technique of controlling.

Answer. Management audit is an appraisal of the overall performance of the management of an organization. It improves the effectiveness and efficiency of management and improves the performance for the future. It serves as an effective technique of controlling because it helps to critically review the organization's structure. It analyses different ways of overcoming inefficiencies or weaknesses in management and different functional areas like production, sales, finance, etc. Also, it helps in evaluating the ways of improving management efficiency and selecting the best. These are also the objectives of management audit.

4. Mr.Arfaaz had been heading the production department of Writewell Products Ltd., a firm manufacturing stationary items. The firm secured an export order that had to be completed on a priority basis and production targets were defined for all the employees. One of the workers, Mr.Bhanu Prasad, fell short of his daily production target by 10 units for two days consecutively. Mr.Arfaaz approached MsVasundhara, the CEO of the Company, to file a complaint against Mr Bhanu Prasad and requested her to terminate his services. Explain the principle of management control that MsVasundhara should consider while taking her decision. (Hint: Management by exception).

Answer. Ms Vasundhara should consider the principle of ‘Management by exception’ while making her decision. It is based on the belief that an attempt to control everything results in controlling nothing. Management by exception is also referred to as Control by exception. Only significant deviations that go beyond the permissible limits should be brought to the notice of management.

To find complete NCERT Solutions of the chapter, click on the link below.

Important Resources for CBSE Board Examinations 2023-2024

CBSE Class 12 Syllabus 2023-24 (All Subjects)

CBSE Class 12 Sample Papers 2023-24 (All Subjects)

NCERT Books for Class 12 (All Subjects)

NCERT Solutions for Class 12 (All Subjects)