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Test: Controlling- Case Based Type Questions - Commerce MCQ


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12 Questions MCQ Test Business Studies (BST) Class 12 - Test: Controlling- Case Based Type Questions

Test: Controlling- Case Based Type Questions for Commerce 2024 is part of Business Studies (BST) Class 12 preparation. The Test: Controlling- Case Based Type Questions questions and answers have been prepared according to the Commerce exam syllabus.The Test: Controlling- Case Based Type Questions MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Controlling- Case Based Type Questions below.
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Test: Controlling- Case Based Type Questions - Question 1

Direction: Read the following text and answer the questions given below:

Sameer Sweets, a renowned name for quality sweets since 1950 had maintained its standards ever since then. It is an ancestral sweet shop and Sana, the present owner of Sameer Sweets, is the third generation entrepreneur who has taken the charge of the sweet shop from her father. Sana has been handling her responsibilities exceptionally well except that she was worried as the sales had declined during the last three months despite her best efforts and involvement in business. When she enquired from the Sales Manager, Ajay, he reported that there were some complaints about the quality of sweets from many customers recently. Therefore, Sana ordered for sample checking of sweets by her quality control team. The team investigated and reported to Sana. She realized that during peak demand, quality was being compromised by her team to satisfy the customers. She decided to invest more capital in order to increase production to be able to meet the increasing demand especially during peak seasons like festivals and marriage catering.

Q. ‘She decided to invest more money in order to increase production to be able to meet the increasing demand….’ Which step does this represent in the controlling process?

Detailed Solution for Test: Controlling- Case Based Type Questions - Question 1
No corrective action is required when the deviations are within acceptable limits. However, when the deviations go beyond the acceptable range, especially in the important areas, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished.
Test: Controlling- Case Based Type Questions - Question 2

Direction: Read the following text and answer the questions given below:

Sameer Sweets, a renowned name for quality sweets since 1950 had maintained its standards ever since then. It is an ancestral sweet shop and Sana, the present owner of Sameer Sweets, is the third generation entrepreneur who has taken the charge of the sweet shop from her father. Sana has been handling her responsibilities exceptionally well except that she was worried as the sales had declined during the last three months despite her best efforts and involvement in business. When she enquired from the Sales Manager, Ajay, he reported that there were some complaints about the quality of sweets from many customers recently. Therefore, Sana ordered for sample checking of sweets by her quality control team. The team investigated and reported to Sana. She realized that during peak demand, quality was being compromised by her team to satisfy the customers. She decided to invest more capital in order to increase production to be able to meet the increasing demand especially during peak seasons like festivals and marriage catering.

Q. ‘…sales had declined during the last three months.’ Which step does this represent in the controlling process ?

Detailed Solution for Test: Controlling- Case Based Type Questions - Question 2
Performance should be measured in an objective and reliable manner. There are several techniques for measurement of performance.
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Test: Controlling- Case Based Type Questions - Question 3

Direction: Read the following text and answer the questions given below:

Sameer Sweets, a renowned name for quality sweets since 1950 had maintained its standards ever since then. It is an ancestral sweet shop and Sana, the present owner of Sameer Sweets, is the third generation entrepreneur who has taken the charge of the sweet shop from her father. Sana has been handling her responsibilities exceptionally well except that she was worried as the sales had declined during the last three months despite her best efforts and involvement in business. When she enquired from the Sales Manager, Ajay, he reported that there were some complaints about the quality of sweets from many customers recently. Therefore, Sana ordered for sample checking of sweets by her quality control team. The team investigated and reported to Sana. She realized that during peak demand, quality was being compromised by her team to satisfy the customers. She decided to invest more capital in order to increase production to be able to meet the increasing demand especially during peak seasons like festivals and marriage catering.

Q. ‘…a renowned name for quality sweets since 1950 had maintained its standards ever since then.’ Which step does this represent in the controlling process?

Detailed Solution for Test: Controlling- Case Based Type Questions - Question 3
Standards are the criteria against which actual performance would be measured. Thus, standards serve as benchmarks towards which an organisation strives to work. Standards can be set in both quantitative as well as qualitative terms.
Test: Controlling- Case Based Type Questions - Question 4

Direction: Read the following text and answer the questions given below:

Sameer Sweets, a renowned name for quality sweets since 1950 had maintained its standards ever since then. It is an ancestral sweet shop and Sana, the present owner of Sameer Sweets, is the third generation entrepreneur who has taken the charge of the sweet shop from her father. Sana has been handling her responsibilities exceptionally well except that she was worried as the sales had declined during the last three months despite her best efforts and involvement in business. When she enquired from the Sales Manager, Ajay, he reported that there were some complaints about the quality of sweets from many customers recently. Therefore, Sana ordered for sample checking of sweets by her quality control team. The team investigated and reported to Sana. She realized that during peak demand, quality was being compromised by her team to satisfy the customers. She decided to invest more capital in order to increase production to be able to meet the increasing demand especially during peak seasons like festivals and marriage catering.

Q. ’…Sana ordered for sample checking of sweets by her quality control team.’ Which step does this represent in the controlling process?

Detailed Solution for Test: Controlling- Case Based Type Questions - Question 4

In the controlling process, the first step is to establish standards or expectations for performance. In this case, Sameer Sweets has a reputation for quality sweets, so the standard would be to maintain that quality.

The second step is to measure the actual performance. In this case, the sales have declined, indicating that there may be an issue with the quality of the sweets.

The third step is to compare the actual performance with the established standards. Sana enquires from the Sales Manager and finds out that there have been complaints about the quality of sweets from customers. This comparison highlights the deviation from the standard.

The fourth step is to analyze the deviations. Sana orders for sample checking of sweets by her quality control team to investigate the issue further and determine the cause of the decline in quality.

Finally, the fifth step is to take corrective action. Based on the report from the quality control team, Sana realizes that the quality was being compromised during peak demand. She decides to invest more capital to increase production and meet the increasing demand while maintaining the quality of the sweets. This action is taken to correct the deviation and bring the performance back in line with the established standards.

Therefore, the ordering of sample checking by the quality control team represents step 3) Analysis of deviations in the controlling process.

Test: Controlling- Case Based Type Questions - Question 5

Direction: Read the following text and answer the questions given below:

Vinay was the Chief Operating Officer of ‘Easy Solutions Ltd.’, a company providing advanced software solutions to Indian Defence Services. They had been carrying on business successfully for the last twelve years and earning enough profits. But from the last one year, they realised that though the business is getting big orders which are being fulfilled on time, even then the revenues kept on decreasing. Vinay was not able to find out where the problem was. He started keeping a close check on the progress of activities as he could sense that something was wrong. He wanted to take some action before any major damage could be done to the business. Vinay appointed a cyber security expert who monitored the company’s processes and found out that the computer operator was deleting the entries from the computers and pocketing the revenues. He was caught and handed over to the police. This created an atmosphere of order and discipline in the organisation and helped in minimizing dishonest behaviour on the part of the employees.

Q. What corrective action did Vinay take?

Detailed Solution for Test: Controlling- Case Based Type Questions - Question 5
Vinay appointed a cyber security expert who monitored the company’s processes and found out that the computer operator was deleting the entries from the computers and pocketing the revenues. He was caught and handed over to the police.
Test: Controlling- Case Based Type Questions - Question 6

Direction: Read the following text and answer the questions given below:

Vinay was the Chief Operating Officer of ‘Easy Solutions Ltd.’, a company providing advanced software solutions to Indian Defence Services. They had been carrying on business successfully for the last twelve years and earning enough profits. But from the last one year, they realised that though the business is getting big orders which are being fulfilled on time, even then the revenues kept on decreasing. Vinay was not able to find out where the problem was. He started keeping a close check on the progress of activities as he could sense that something was wrong. He wanted to take some action before any major damage could be done to the business. Vinay appointed a cyber security expert who monitored the company’s processes and found out that the computer operator was deleting the entries from the computers and pocketing the revenues. He was caught and handed over to the police. This created an atmosphere of order and discipline in the organisation and helped in minimizing dishonest behaviour on the part of the employees.

Q. What did the measurement of performance reveal?

Detailed Solution for Test: Controlling- Case Based Type Questions - Question 6
The measurement of performance revealed declining revenues despite getting big orders which were being fulfilled on time.
Test: Controlling- Case Based Type Questions - Question 7

Direction: Read the following text and answer the questions given below:

Vinay was the Chief Operating Officer of ‘Easy Solutions Ltd.’, a company providing advanced software solutions to Indian Defence Services. They had been carrying on business successfully for the last twelve years and earning enough profits. But from the last one year, they realised that though the business is getting big orders which are being fulfilled on time, even then the revenues kept on decreasing. Vinay was not able to find out where the problem was. He started keeping a close check on the progress of activities as he could sense that something was wrong. He wanted to take some action before any major damage could be done to the business. Vinay appointed a cyber security expert who monitored the company’s processes and found out that the computer operator was deleting the entries from the computers and pocketing the revenues. He was caught and handed over to the police. This created an atmosphere of order and discipline in the organisation and helped in minimizing dishonest behaviour on the part of the employees.

Q. Which management function proved helpful in creating an atmosphere of order and discipline in the organisation and helped in minimizing dishonest behaviour on the part of the employees?

Detailed Solution for Test: Controlling- Case Based Type Questions - Question 7
Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities.
Test: Controlling- Case Based Type Questions - Question 8

Direction: Read the following text and answer the questions given below:

Vinay was the Chief Operating Officer of ‘Easy Solutions Ltd.’, a company providing advanced software solutions to Indian Defence Services. They had been carrying on business successfully for the last twelve years and earning enough profits. But from the last one year, they realised that though the business is getting big orders which are being fulfilled on time, even then the revenues kept on decreasing. Vinay was not able to find out where the problem was. He started keeping a close check on the progress of activities as he could sense that something was wrong. He wanted to take some action before any major damage could be done to the business. Vinay appointed a cyber security expert who monitored the company’s processes and found out that the computer operator was deleting the entries from the computers and pocketing the revenues. He was caught and handed over to the police. This created an atmosphere of order and discipline in the organisation and helped in minimizing dishonest behaviour on the part of the employees.

Q. What did the analysis by Vinay reveal?

Detailed Solution for Test: Controlling- Case Based Type Questions - Question 8
The analysis by Vinay revealed the computer operator was deleting the entries from the computers and pocketing the revenues.
Test: Controlling- Case Based Type Questions - Question 9

Direction: Read the following text and answer the questions given below:

A critical point control (CPC) approach is followed by McDonald in the cooking and handling process so that any food safety threat can be prevented, eliminated, or reduced to an acceptable level. Hence, continuous monitoring of activities are undertaken to ensure that the process is right at each critical point control. The main principle followed for cooking at McDonald is “less amount many time” which can ensure the high quality and high fresh level of the food. For instance, if four hamburgers have to be made, a worker cannot cook all the four hamburgers at one time. The time figured out for making one hamburger is one hundred and forty-five seconds. Moreover, nearly all foods in the McDonald have the specific holding time, the holding time for hamburgers is ten minutes and for french fries is seven minutes. If it is not sold within that time it is thrown away. Also, the temperature of the milk sent by the supplier must be under 4° C, otherwise, it will be returned.

Q. Which feature of controlling is highlighted in the above text?

Detailed Solution for Test: Controlling- Case Based Type Questions - Question 9
Controlling is an ongoing and dynamic function of management. It involves a continuous review of performance and is not a one-time exercise. The period of control normally depends upon the nature of work, the amount of work and the policies of management.
Test: Controlling- Case Based Type Questions - Question 10

Direction: Read the following text and answer the questions given below:

A critical point control (CPC) approach is followed by McDonald in the cooking and handling process so that any food safety threat can be prevented, eliminated, or reduced to an acceptable level. Hence, continuous monitoring of activities are undertaken to ensure that the process is right at each critical point control. The main principle followed for cooking at McDonald is “less amount many time” which can ensure the high quality and high fresh level of the food. For instance, if four hamburgers have to be made, a worker cannot cook all the four hamburgers at one time. The time figured out for making one hamburger is one hundred and forty-five seconds. Moreover, nearly all foods in the McDonald have the specific holding time, the holding time for hamburgers is ten minutes and for french fries is seven minutes. If it is not sold within that time it is thrown away. Also, the temperature of the milk sent by the supplier must be under 4° C, otherwise, it will be returned.

Q. Which of the following statements is true with respect to critical point control?

Detailed Solution for Test: Controlling- Case Based Type Questions - Question 10
Critical point control means keeping focus on some key areas (KRAs) and if there is any deviation in these key areas, and then it must be attended urgently. Key areas are those which have impact on whole organisation.
Test: Controlling- Case Based Type Questions - Question 11

Direction: Read the following text and answer the questions given below:

A critical point control (CPC) approach is followed by McDonald in the cooking and handling process so that any food safety threat can be prevented, eliminated, or reduced to an acceptable level. Hence, continuous monitoring of activities are undertaken to ensure that the process is right at each critical point control. The main principle followed for cooking at McDonald is “less amount many time” which can ensure the high quality and high fresh level of the food. For instance, if four hamburgers have to be made, a worker cannot cook all the four hamburgers at one time. The time figured out for making one hamburger is one hundred and forty-five seconds. Moreover, nearly all foods in the McDonald have the specific holding time, the holding time for hamburgers is ten minutes and for french fries is seven minutes. If it is not sold within that time it is thrown away. Also, the temperature of the milk sent by the supplier must be under 4° C, otherwise, it will be returned.

Q. Which of the following steps involved in the controlling process is discussed in the above lines

Detailed Solution for Test: Controlling- Case Based Type Questions - Question 11
The steps involved in the controlling process is discussed in the above lines are:
  • Analysing deviation: Deviation analysis is a routine form of troubleshooting performed at process manufacturing facilities around the world.

  • Taking corrective action: Action to eliminate the cause of a detected nonconformity. There can be more than one nonconformity. Corrective action is taken to prevent recurrence.

Test: Controlling- Case Based Type Questions - Question 12

Direction: Read the following text and answer the questions given below:

A critical point control (CPC) approach is followed by McDonald in the cooking and handling process so that any food safety threat can be prevented, eliminated, or reduced to an acceptable level. Hence, continuous monitoring of activities are undertaken to ensure that the process is right at each critical point control. The main principle followed for cooking at McDonald is “less amount many time” which can ensure the high quality and high fresh level of the food. For instance, if four hamburgers have to be made, a worker cannot cook all the four hamburgers at one time. The time figured out for making one hamburger is one hundred and forty-five seconds. Moreover, nearly all foods in the McDonald have the specific holding time, the holding time for hamburgers is ten minutes and for french fries is seven minutes. If it is not sold within that time it is thrown away. Also, the temperature of the milk sent by the supplier must be under 4° C, otherwise, it will be returned.

Q. Identify the point which highlights the importance of the controlling function in the above text.

Detailed Solution for Test: Controlling- Case Based Type Questions - Question 12
The importance of the controlling function in the above text are:
  • Accomplishing organisational goals: It measures the accomplishment of work against the standards and corrects deviations.

  • Making efficient use of resources: Resource efficiency means using the Earth's limited resources in a sustainable manner while minimising impacts on the environment.

  • Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective.

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