Class 12 Controlling Mock Test (CBSE)

Topics in Controlling

• Meaning of controlling
• Importance of controlling
• Limitations of controlling
• Relationship between planning and controlling
• Controlling process
• Critical point control and management by exception

Controlling practice questions with answers

1. Q1Multiple choice·1 mark
   What is the very first step in the controlling process of management?

   1. (a)Analysing deviations
   2. (b)Taking corrective action
   3. (c)Setting performance standards
   4. (d)Measurement of actual performance
   Show answer and step marks

   1. Correct option: (c) Setting performance standards+1

   Answer: (c)
2. Q2Multiple choice·1 mark
   Which of the following statements correctly highlights the relationship between planning and controlling?

   1. (a)Controlling is a blind process without planning, as planning provides the standards for comparison.
   2. (b)Planning is backward-looking, whereas controlling is forward-looking.
   3. (c)Planning is an independent function, unaffected by controlling.
   4. (d)Controlling precedes planning in the management process.
   Show answer and step marks

   1. Correct option: (a) Controlling is a blind process without planning, as planning provides the standards for comparison.+1

   Answer: (a)
3. Q3Short answer·2 marks
   Briefly explain 'Critical point control' and 'Management by exception' as two core techniques used in the controlling process.
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   1. Critical Point Control: It involves focusing on key result areas (KRAs) which are critical to the success of an organization, as it is neither economical nor practical to check every single activity.+1
   2. Management by Exception: It is based on the principle that if you try to control everything, you may end up controlling nothing. Thus, only significant deviations exceeding permissible limits are brought to the notice of management.+1

   Answer: Critical point control: management focuses on key result areas (KRAs) critical to the organisation's success, since checking every activity is neither economical nor practical. Management by exception: only significant deviations beyond permissible limits are reported to management, since trying to control everything may end in controlling nothing.
4. Q4Short answer·3 marks
   "Controlling is an indispensable function of management." Explain any three points that highlight the importance of controlling in an organization.
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   1. First point, any one of: accomplishing organisational goals: controlling measures progress towards goals and points out deviations so that corrective action can be taken; judging the accuracy of standards: it helps management check whether the standards set are accurate and objective; making efficient use of resources: activities follow predetermined standards, which reduces wastage and spoilage of resources; improving employee motivation: employees know in advance what is expected of them and the standards on which they will be appraised; ensuring order and discipline: close checks reduce dishonest behaviour and create order in the organisation; facilitating coordination in action: all activities and efforts are directed towards predetermined standards and goals; or any other valid point of importance of controlling.+1
   2. Second point, a different one from the same list.+1
   3. Third point, a different one from the same list.+1

   Answer: Any three of: accomplishing organisational goals by pointing out deviations for corrective action; judging the accuracy of standards; making efficient use of resources by reducing wastage; improving employee motivation; ensuring order and discipline; facilitating coordination in action.

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