MCQ Questions for Class 12 Business Studies Chapter 8 Controlling with Answers

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Controlling Class 12 MCQs Questions with Answers

Question 1.
Which of the following is not applicable to responsibility accounting
(a) Accounting centre
(b) Cost centre
(c) Profit centre
(d) Investment centre

Answer

Answer: (a) Accounting centre


Question 2.
Management control is done by the __________________
(a) Managers at Top Level
(b) Managers at Middle Level
(c) Managers at Lower Level
(d) All of the above

Answer

Answer: (d) All of the above


Question 3.
What will be the corrective action for defective machinery?
(a) Sell at the book value
(b) Sell at a loss
(c) Sell at a profit
(d) Repair or Replace the machine

Answer

Answer: (d) Repair or Replace the machine


Question 4.
Which of the following is not a technique of controlling?
(a) Break-even analysis
(b) Budget
(c) Managerial Audit
(d) Cash Flow Statement

Answer

Answer: (d) Cash Flow Statement


Question 5.
Technological up-gradation is the best corrective action in case of _________
(a) Defective machinery
(b) Defective material
(c) Obsolete Machinery
(d) None of the above

Answer

Answer: (c) Obsolete Machinery


Question 6.
What will be the corrective action for defective material?
(a) Change in Quantity
(b) Change in Price
(c) Change in Quality Specifications for the material used
(d) None of the above

Answer

Answer: (c) Change in Quality Specifications for the material used


Question 7.
An efficient control system helps to
(a) Judges accuracy of standards
(b) Accomplishes organisational objectives
(c) Boosts employee morale
(d) All of the above

Answer

Answer: (d) All of the above


Question 8.
Controlling is __________ aspect of management.
(a) Physical
(b) Practical
(c) Mental
(d) Theoretical

Answer

Answer: (b) Practical


Question 9.
What is the last step in the controlling process?
(a) Setting Performance Standards
(b) Taking corrective action
(c) Comparing actual performance with standards
(d) Measurement of actual performance

Answer

Answer: (b) Taking corrective action


Question 10.
Why actual performance is compared with standards?
(a) To take corrective action
(b) To improve the quality of material
(c) To change the machinery
(d) None of the above

Answer

Answer: (a) To take corrective action


Question 11.
Controlling is _______________
(a) Economical
(b) Costly
(c) Free
(d) Very Cheap

Answer

Answer: (b) Costly


Question 12.
Which of the following is a limitation of controlling?
(a) Controlling improves employee motivation
(b) Controlling is goal-oriented
(c) Controlling is expensive
(d) Controlling ensures order and discipline

Answer

Answer: (c) Controlling is expensive


Question 13.
The main focus of controlling is on ________________
(a) Competition
(b) External Forces
(c) Results
(d) Business Environment

Answer

Answer: (c) Results


Question 14.
Management audit is a technique to keep a check on the performance of
(a) Company
(b) Management of the company
(c) Shareholders
(d) Customers

Answer

Answer: (b) Management of the company


Question 15.
When actual performance is better than the standard performance it is called _____
(a) Negative Deviation
(b) Poor Deviation
(c) Positive Deviation
(d) None of the above

Answer

Answer: (c) Positive Deviation


Question 16.
Controlling is necessary for ____________
(a) Medium Level Enterprise
(b) Small Scale Enterprise
(c) Large Scale Enterprise
(d) All of the above

Answer

Answer: (d) All of the above


Question 17.
There is one popular saying that Planning is looking _________ while controlling is looking ________
(a) Back, Ahead
(b) Ahead, Back
(c) Future, Present
(d) None of the above

Answer

Answer: (b) Ahead, Back


Question 18.
Budgetary control requires the preparation of
(a) Budgets
(b) Network diagram
(c) Responsibility Centres
(d) Training schedule

Answer

Answer: (a) Budgets


Question 19.
Which of the following is not correct?
(a) Controlling is goal-oriented
(b) Controlling is a pervasive function
(c) Controlling can prevent deviation
(d) Controlling ensures order and discipline

Answer

Answer: (c) Controlling can prevent deviation


Question 20.
What is the first step in the controlling process?
(a) Comparing actual performance with standards
(b) Analysing deviations
(c) Setting performance standards
(d) Measurement of actual performance

Answer

Answer: (c) Setting performance standards


Question 21.
What are the techniques of measurement of performance?
(a) Performance reports
(b) Sample Checking
(c) Personal Observation
(d) All of the above

Answer

Answer: (d) All of the above


Question 22.
Which of the following is a technique of controlling?
(a) Managerial Audit
(b) Break-even analysis
(c) Budget
(d) All of the above

Answer

Answer: (d) All of the above


Question 23.
The controlling function of an organisation is
(a) Forward as well as backward looking
(b) Backward looking
(c) Forward-looking
(d) None of the above

Answer

Answer: (a) Forward as well as backward-looking


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