CUET UG Categorised PYQ Business Studies Unit 8

(Detailed) → Controlling is the managerial function that monitors organisational performance. → It compares actual performance with pre-determined standards. → If deviations are found, corrective action is taken. → The keyword "monitors organisational performance" directly indicates controlling. → Controlling ensures that organisational activities move towards the attainment of goals. → Hence, Controlling is the correct answer.

(Detailed) → Controlling is backward looking because it compares actual performance with standards after work has been performed. → It studies past deviations and identifies where performance went wrong. → At the same time, controlling is forward looking because corrective actions are taken to improve future performance. → It helps managers avoid repetition of mistakes in future activities. → Thus, controlling uses past performance to guide future action. → Hence, Both forward and backward looking is the correct answer.

(Detailed) → Control by Exception means that only significant deviations should be brought to the attention of management. → Managers do not need to control every small deviation. → In the question, defective bulbs are allowed up to 5%. → Only deviations beyond this permissible limit are reported to the supervisor. → This means only exceptional deviations are considered important for managerial attention. → Therefore, the concept highlighted is Control by Exception. → Hence, Control by Exception is the correct answer.

(Detailed) → Controlling helps in creating order and discipline in an organisation. → It keeps a check on employee activities and reduces dishonest or careless behaviour. → Employees become aware that their performance will be measured and deviations will be corrected. → Therefore, controlling can improve discipline and systematic working. → Since "ensuring order and discipline" is a benefit of controlling, it cannot be treated as a limitation. → The question asks for the option which is not a limitation. → Hence, Ensuring order and discipline is the correct answer.

(Detailed) → Controlling begins with setting performance standards. → Standards act as a yardstick for measuring actual performance. → The actual performance is then compared with planned or desired performance. → If there is any deviation between actual and planned performance, corrective action is taken. → The phrase "match the actual performance with the desired performance" directly indicates controlling. → Hence, Controlling is the correct answer.

(Detailed) → (A) Setting performance standards matches with (IV) Serves as benchmarks because standards act as the basis for comparison. → (B) Analysing deviation matches with (I) Management by Exception because only significant deviations are analysed and brought to management attention. → (C) Measurement of actual performance matches with (II) Sample checking because actual performance may be measured through sample checking. → (D) Comparison of actual performance with standards matches with (III) Reveals the deviation because deviation is known only after comparison. → Therefore, the correct matching is (A)-(IV), (B)-(I), (C)-(II), (D)-(III). → Hence, (A)-(IV), (B)-(I), (C)-(II), (D)-(III) is the correct answer.

(Detailed) → The managerial function involved here is controlling. → In the controlling process, performance is measured, compared with standards and deviations are analysed. → In the given case, the decline in production has already been noticed. → The reason has also been analysed as smoky work station due to burning of fuel. → Once the cause of deviation is identified, the next step is to take corrective action. → Corrective action may include improving the work station, removing smoke or changing the fuel system. → Therefore, the next step is Taking corrective action. → Hence, Taking corrective action is the correct answer.

(Detailed) → Controlling has certain limitations such as difficulty in setting quantitative or qualitative standards, little control over external factors, resistance from employees and costly nature. → Controlling requires time, money and effort, so it may become costly. → Controlling cannot fully control external factors like government policy, market changes and technological changes. → It is also difficult to set measurable standards for qualitative areas like morale, attitude and behaviour. → Restriction in managerial development is not a standard limitation of controlling. → Since the question asks for what is not a limitation, Restriction in Managerial development is the correct answer. → Hence, Restriction in Managerial development is the correct answer.

(Detailed) → PERT stands for Programme Evaluation and Review Technique. → CPM stands for Critical Path Method. → Both PERT and CPM are modern techniques of managerial control. → They are used in project planning, scheduling and controlling complex activities. → These techniques help managers identify critical activities and ensure timely completion of projects. → Other options are traditional control techniques. → Hence, PERT and CPM is the correct answer.

(Detailed) → Controlling is the management function that ensures activities are performed according to plans. → It involves setting performance standards, measuring actual performance, comparing it with standards and correcting deviations. → Managers at all levels use controlling to check whether work is progressing as planned. → If activities are not being performed according to plans, corrective action is taken. → The phrase "activities are being performed as per the plans" directly indicates controlling. → Hence, Controlling is the correct answer.

(Detailed) → Traditional techniques of controlling are older and commonly used methods of managerial control. → These include personal observation, statistical reports, break-even analysis and budgetary control. → Ratio Analysis is a modern technique used to analyse financial performance through ratios. → It helps managers study liquidity, solvency, profitability and efficiency of the business. → Since the question asks which is not a traditional technique, Ratio Analysis is the correct answer. → Hence, Ratio Analysis is the correct answer.

(Detailed) → Controlling is a systematic process used to ensure that actual performance matches planned performance. → Statement (B) Setting performance standards is the first step because standards act as benchmarks. → Statement (E) Measurement of actual performance comes next because actual results must be measured objectively. → Statement (D) Comparing actual performance with standards follows because comparison reveals deviations. → Statement (A) Analysing deviations comes after comparison because the causes and importance of deviations must be studied. → Statement (C) Taking corrective action is the final step because action is taken to remove deviations. → Therefore, the correct sequence is (B), (E), (D), (A), (C). → Hence, (B), (E), (D), (A), (C) is the correct answer.

(Detailed) → Breakeven analysis is a technique of controlling used to study the relationship between cost, volume and profit. → It helps determine the level of activity at which total revenue equals total cost. → At the break-even point, there is no profit and no loss. → It also helps managers estimate probable profit or loss at different levels of production or sales. → Since the question asks about determining probable profit and losses at different levels of activity, the technique is Breakeven analysis. → Hence, Breakeven analysis is the correct answer.

(Detailed) → Controlling is the process of ensuring that actual performance conforms to planned performance. → Its steps include setting performance standards, measuring actual performance, comparing actual performance with standards, analysing deviations and taking corrective action. → Defining levels of management belongs to the study of management hierarchy. → It is not a part of the controlling process. → Since the question asks for the exception, Defining levels of management is the correct answer. → Hence, Defining levels of management is the correct answer.

(Detailed) → Modern techniques of managerial control include Ratio Analysis, Return on Investment, Responsibility Accounting, Management Audit, PERT and CPM, and Management Information System. → Personal Observation is a traditional technique of controlling. → Under personal observation, the manager directly observes employees and work performance. → This technique is simple and old, but it is not classified as a modern technique. → Since the question asks which is not a modern technique, Personal Observation is the correct answer. → Hence, Personal Observation is the correct answer.

(Detailed) → Planning and controlling are closely related management functions. → Planning prescribes the course of action required to achieve objectives. → It decides in advance what is to be done and how it is to be done. → Controlling evaluates whether actual actions and results are according to plans. → The question clearly contrasts "prescribes an appropriate course of action" with "checks whether decisions have been translated into desired action." → Therefore, the statement explains that planning is prescriptive and controlling is evaluative. → Hence, Planning is prescriptive, controlling is evaluative is the correct answer.

(Detailed) → Controlling is a systematic process of checking performance against standards. → Statement (C) Setting performance standards is the first step because standards act as benchmarks. → Statement (B) Measurement of actual performance is the second step because actual performance must be measured objectively. → Statement (D) Comparison of actual performance with standards is the third step because comparison reveals deviations. → Statement (A) Analysing deviations is the fourth step because the causes and importance of deviations must be examined. → Statement (E) Taking corrective action is the final step because corrective steps are taken to remove deviations. → Therefore, the correct sequence is (C), (B), (D), (A), (E). → Hence, (C), (B), (D), (A), (E) is the correct answer.

(Detailed) → Controlling follows a systematic sequence. → Statement (C) Setting performance standards comes first because standards act as the basis for comparison. → Statement (B) Measurement of actual performance comes next because actual results must be measured. → Statement (D) Comparison of actual performance with standards follows because comparison reveals whether performance matches the standards. → Statement (A) Analysing deviations comes after comparison because deviations can be analysed only after they are identified. → Therefore, the correct sequence is (C), (B), (D), (A). → Hence, (C), (B), (D), (A) is the correct answer.

(Detailed) → Controlling involves comparing actual performance with pre-determined standards. → If the standards are unrealistic or too high, they may not be achieved in current circumstances. → Controlling helps managers review such standards. → It also helps in revising standards whenever required. → Therefore, the importance of controlling highlighted here is judging the accuracy of standards. → Hence, Controlling helps in judging the accuracy of standards is the correct answer.

(Detailed) → (A) Production matches with (I) Cost because production performance can be measured through cost standards. → (B) Marketing matches with (II) Sales Volume because marketing performance is often measured through sales volume. → (C) Human Resource Management matches with (III) Labour Relations because HRM deals with employees and labour relations. → (D) Finance matches with (IV) Liquidity because finance deals with availability and management of funds. → Therefore, the correct matching is (A)-(I), (B)-(II), (C)-(III), (D)-(IV). → Hence, (A)-(I), (B)-(II), (C)-(III), (D)-(IV) is the correct answer.

(Detailed) → Controlling is an important function of management that compares actual performance with standards and takes corrective action. → Limitations of controlling include difficulty in setting quantitative standards, little control on external factors, resistance from employees and costly nature. → "Ensure order and discipline" is not a limitation. → It is an advantage or importance of controlling because controlling keeps employees aware of standards and corrective actions. → It helps maintain discipline by keeping a check on organisational activities. → Since the question asks what is not a limitation, the correct answer is Ensure order and discipline. → Hence, Ensure order and discipline is the correct answer.

(Detailed) → Controlling is the process of ensuring that actual performance matches planned standards. → The first step is setting up standards, because standards act as the basis for comparison. → After standards are fixed, actual performance is measured. → Then actual performance is compared with the standards. → Finally, deviations are analysed to find out their causes and importance. → Correct sequence: Setting up standards → Measurement of actual performance → Comparison of actual performance with standards → Analysing deviations. → Therefore, the correct answer is (C), (B), (D), (A). → Hence, (C), (B), (D), (A) is the correct answer.

(Detailed) → Critical point control means focusing attention on important areas where deviations can seriously affect organisational performance. → Managers cannot control every small activity with equal attention. → Some areas are more critical than others. → In the statement, a 5% increase in labour cost is more troublesome than a 15% increase in postal charges because labour cost is more significant for business performance. → This shows that management should focus on critical areas rather than all deviations equally. → Therefore, the concept highlighted is Critical point control. → Hence, Critical point control is the correct answer.

(Detailed) → The case refers to the controlling process. → First, performance standards are set. → Then actual performance is measured. → After that, actual performance is compared with standards. → Deviations are analysed by finding causes. → Finally, corrective action is taken. → Correct sequence: (B) Set standards → (D) Measure performance → (E) Compare performance → (A) Find causes → (C) Take corrective action. → Hence, (B), (D), (E), (A), (C) is the correct answer.

(Detailed) → (A) Accomplishing organisational goals matches with (III) Identifying deviations because deviations must be corrected to achieve goals. → (B) Judging accuracy of standards matches with (II) Review of standards because standards are checked and reviewed during controlling. → (C) Making efficient use of resources matches with (I) Efficient use of resources because controlling prevents wastage and misuse. → (D) Improving employee motivation matches with (IV) Informing expectations clearly because employees feel motivated when they know what is expected from them. → Therefore, the correct matching is (A)-(III), (B)-(II), (C)-(I), (D)-(IV). → Hence, (A)-(III), (B)-(II), (C)-(I), (D)-(IV) is the correct answer.

(Detailed) → Management by Exception is a control technique where only significant deviations are brought to the attention of management. → Managers do not waste time on minor deviations that remain within acceptable limits. → In the question, only a 5% increase in material cost was found critical. → This shows focus on exceptional or important deviations. → The technique helps managers concentrate on deviations that seriously affect organisational performance. → Hence, Management by exception is the correct answer.

(Detailed) → Controlling involves setting standards, measuring actual performance, comparing performance with standards and taking corrective action. → These steps require time, effort and resources. → In large organisations, collecting data and analysing deviations may take considerable time. → Because of this, controlling may not always provide instant results. → Therefore, controlling is considered time-consuming. → Hence, It is time-consuming is the correct answer.

(Detailed) → Controlling is the process of ensuring that actual performance matches planned performance. → The process begins with setting standards. → After that, actual performance is measured. → Then actual performance is compared with standards. → If deviations are found, corrective actions are taken. → Taking corrective actions is the last step because it rectifies the deviations. → Hence, Taking corrective actions is the correct answer.