Chapter-wise MCQ Questions

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Question-1. Planning in the absence of controlling is meaningless. What does this statement indicate in respect of both?

  1. Both are unnecessary
  2. Only planning is essential
  3. Only controlling is essential
  4. Both are essential

Question-2. Which of the following is associated with the marketing standard?

  1. Dispute rate
  2. Sales expenses
  3. Capital expense
  4. Quantity

Question-3. Which of the following qualities the standard should have?

  1. All of these
  2. Achievable
  3. Measurable
  4. Flexible

Question-4. _____ ensures that an organisation resources are used effectively and efficiently for the achievement of pre-determined goals.

  1. Coordination
  2. Management
  3. Organising
  4. Controlling

Question-5. ________ checks whether decisions have been translated into desired action.

  1. Coordination
  2. Directing
  3. Controlling
  4. Organising

Question-6. An efficient control system helps to:

  1. All of the above
  2. Accomplishes organizational objectives
  3. Boosts employee morale
  4. Judges accuracy of standards

Question-7. Budgetary control requires the preparation of

  1. Responsibility centres
  2. Training schedule
  3. Budgets
  4. Network diagram

Question-8. Controlling function of an organization is

  1. None of the above
  2. Forward looking
  3. Backward looking
  4. Forward as well as backward looking

Question-9. Controlling is needed at which level of management?

  1. All level
  2. Top level
  3. Middle level
  4. Lower level

Question-10. Controlling is related to:

  1. Managers
  2. Results
  3. Individuals
  4. Things

Question-11. Cost at Rs. 100 per unit is an example of which standard?

  1. None of these
  2. Quantitative
  3. Qualitative
  4. Both

Question-12. First step in controlling process is:

  1. Measurement of actual performance.
  2. Taking corrective action
  3. Analysing the deviations
  4. Determining standards

Question-13. In a manufacturing organisation, an increase of 5 % in the labour cost may be more trouble some than 15% increase in postal changes. Which of the following has been highlighted above?

  1. Management by exception
  2. Critical point control
  3. Sample checking
  4. Performed reports

Question-14. Individual job performance is the standards set to gauge performance in which one of the following functional areas of business?

  1. Finance and Accounting
  2. Production
  3. Marketing
  4. HR

Question-15. Management audit is a technique to keep a check on the performance of

  1. Customers
  2. Company
  3. Management of the company
  4. Shareholders

Question-16. Strike is which type of cause of deviation?

  1. Defective standards
  2. Uncertain conditions
  3. Human cause
  4. Various hindrances

Question-17. Technique for measurement of performance:

  1. All of these
  2. Personal observation
  3. Sample checking
  4. Performance reports

Question-18. This is the last step in the process of controlling.

  1. Measurement of performance.
  2. Analysing deviations
  3. Taking corrective action
  4. Setting performance standard

Question-19. What type of nature the control has?

  1. None of these
  2. Positive approach
  3. Negative approach
  4. Both of the above

Question-20. When the deviations go beyond the acceptable range, especially in the importance area, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished.

  1. Analysing deviations
  2. Management by exception
  3. Critical point control
  4. Both (a) and (b)

Question-21. Which function of management is controlling?

  1. Last
  2. First
  3. Second
  4. Third

Question-22. Which of the following is an example of qualitative standards?

  1. Product units to be produced and sold
  2. Time taken by a customer to wait for a table in a fast food chain having self-service
  3. Time to be spent in performing a task
  4. Cost to be incurred

Question-23. Which of the following represents quantitative standards?

  1. None of these
  2. Improving goodwill
  3. Time to be spent in performing a task
  4. Improving the motivation level of employees

Question-24. Which one of the following points of importance of controlling is best described above?

  1. Improving employee motivation
  2. Accomplishing organisational goals
  3. Facilitating coordination in action
  4. Making efficient use of resources

Question-25. Which standard is associated with production?

  1. Labour
  2. Quality
  3. Quantity
  4. Quality and Quantity

Question-26. What is the process of ensuring that actual results are in accordance with planned results.

  1. Directing
  2. Controlling
  3. Coordinating
  4. Planning

Question-27. Controlling is

  1. All of these
  2. Forward looking
  3. Backward looking
  4. Continous process

Question-28. Controlling is known as a backward-looking function because

  1. All of the above
  2. It relates to future course of action.
  3. It is like a post-mortem of the past activities
  4. To find out deviation, it aims at improving future performance.

Question-29. Deviations are said to be positive in nature when

  1. None of the above
  2. Planned performance is more than the actual performance
  3. Actual performance is more than the planned performance
  4. Both planned and actual performances are same

Question-30. Identify the correct sequence of the steps involved in the controlling process.

  1. Taking corrective action, Measurement of actual performance, Comparison of actual performance with standards, Analysing deviations, Setting performance standards
  2. Measurement of actual performance, Taking corrective action, Setting performance standards, Comparison of actual performance with standards, Analysing deviations
  3. Comparison of actual performance with standards, Setting performance standards. Measurement of actual performance, Analysing deviations, Taking corrective action
  4. Setting performance standards, Measurement of actual performance, Comparison of actual performance with standards, Analysing deviations, Taking corrective action

Question-31. In a marketing firm, the Financial Manager pays more attention towards an increase of 3% in the marketing cost as compared to a 15% increase in the courier expenses. Identify the concept being used by the manager.

  1. None of the above
  2. Management by exception
  3. Critical point control
  4. Corrective action

Question-32. In an artificial plants manufacturing unit, the standard output set for a worker is 50 units per day. Dinesh produces 48 units in one day. In the given case, the value of deviation is

  1. None of the above
  2. -2
  3. 2
  4. 98

Question-33. Om Prakash has set up a small business unit for the manufacturing of detergent. In order to market the detergent in the local residential areas, he has appointed a team of ten salesmen. Each salesman is expected to sell at least 200 units of the detergent within a week’s time. Identify the point of importance of controlling being highlighted in the above case.

  1. It facilitates co-ordination in action.
  2. Controlling helps in judging accuracy of standards.
  3. It ensures efficient use of resources.
  4. It helps in improving employee motivation.

Question-34. Reducing the workers, absenteeism in a factory by 20% is an example of

  1. None of the above
  2. Quantitative standard
  3. Qualitative standard
  4. Deviation

Question-35. The comparison of actual performance with the planned performance becomes easier if the standards are set in

  1. None of the above
  2. Qualitative terms
  3. Quantitative terms
  4. Either of the above

Question-36. The controlling function is performed by

  1. All of the above
  2. Top level management
  3. Lower level management
  4. Middle level management

Question-37. The need for the controlling function is felt in

  1. All of the above
  2. Business organisations
  3. Political organisations
  4. Social organisations

Question-38. This concept of Control Management is based on the belief that if you try to control everything, you may end up controlling nothing.

  1. Deviations
  2. Critical point control
  3. Key result areas
  4. Management by exception

Question-39. When the deviations between the actual performance and the planned performance are within the limits

  1. None of the above
  2. A limited corrective action is required
  3. No corrective action is required
  4. A major corrective action is required

Question-40. Which of the following is not an importance of controlling function?

  1. It improves employee motivation.
  2. It ensures order and discipline.
  3. It restricts co-ordination in action.
  4. It helps in judging accuracy of standards.

Question-41. Which one of the following is a step of controlling?

  1. Taking disciplinary action
  2. Assessing personnel required
  3. Taking corrective action
  4. Assessing environment

Question-42. Which one of the following is not a feature of controlling?

  1. Pervasive function
  2. Continuous process
  3. Action-oriented
  4. Keeping employees busy

Question-43. Which one of the following is not an importance of controlling?

  1. Better grievance handling
  2. Better coordination
  3. Better use of resources
  4. Better planning

Question-44. Yash runs a logistic company. The Tour Incharges of each trip in the company are expected to submit a report to the Event Manager on the completion of every trip. Identify the step in the controlling process being described in the above lines.

  1. Analysing the deviations
  2. Setting of standards
  3. Measurement of actual performance
  4. Taking corrective action



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