Test: Controlling - 1

10 Questions MCQ Test Business Studies (BST) Class 12 | Test: Controlling - 1

Attempt Test: Controlling - 1 | 10 questions in 10 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Business Studies (BST) Class 12 for Commerce Exam | Download free PDF with solutions

This a MCQ (Multiple Choice Question) based practice test of Chapter 8 - Controlling of Business Studies of Class XII (12) for the quick revision/preparation of School Board examinations

Q  An efficient control system helps to


An efficient controlling system helps in achieving all the aforementioned objectives. Controlling refers to the process of assessing the progress of the current tasks and activities and setting the work standards to achieve the goals of the organisation. An efficient control system helps in keeping a close watch on the progress of the work towards the accomplishment of the organisational goals and takes the required corrective actions. It helps in tracking the changes taking place in the organisation and the business environment and thereby, helps in judging the accuracy of the standards set. Along with this, controlling boosts employee morale by telling them in advance about what is expected from them and motivating them to work according to the set policies.


Controlling function of an organisation is


Controlling as an essential part of management is forward as well as backward looking. It is a backward looking function in the sense that it assesses the work done and analyses deviations from the set standards. Based on these deviations it attempts to take the required corrective measures. Thus, it guides the future course of action and aims at improving the future performance. In this sense, it is also a forward looking function. Hence, we can say that controlling is forward as well as backward looking function.


Management audit is a technique to keep a check on the performance of


Budgetary control requires the preparation of


Budgetary control technique of managerial control involves the preparation of budgets for each operation of the organisation and then comparing the realised results with the budgetary standards.  budget is a quantitative statement defining the objectives to be achieved in a specified time period and the policies to be followed.


Which of the following is not applicable to responsibility accounting


Accounting centre is not a part of responsibility accounting. Responsibility accounting basically refers to a system in which different divisions of the organisation are established as responsibility centres. Herein, each department is given a set target and the head of the department (manager) is made responsible for achieving it. They are of different types of responsibility centres such as cost centre, investment centre, profit centre and revenue centre.


Which of the following is not a technique of controlling?


Traditional Techniques are:

  • Personal observation
  • Statistical reports
  • Break-even analysis
  • Budgetary control

Modern techniques are:

  • Return on investment
  • Ratio analysis
  • Responsibility accounting
  • Management audit
  • PERT & CPM

A cash flow statement is a financial statement that provides total data regarding all cash inflows a company receives from its ongoing operations and external investment sources. Hence, cashflow statemen is not a technique of planning.


Management control is done by the __________________


Controlling is __________ aspect of management.


Planning is the mental process whereas controlling isteh practical aspect. Controlling process works on the achievement of the objectives set in the planning process.  Controlling is a process of comparing the actual performance with the set standards of the company to ensure that activities are performed according to the plans and if not then taking corrective action.


Which of the following is a technique of controlling?


What is the first step in controlling process?


The first step in Control Process:
Determination of Smart Standards:
A standard means a benchmark. It means a specific set of factors relating to any organization, indi­viduals, or groups of individuals working in departments or divisions of an organization. A standard should be SMART, meaning Specific, Measurable, Achievable, Realistic and Time-based.

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