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

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

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

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

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

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

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

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

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

Question-6. An efficient control system helps to:

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

Question-7. Budgetary control requires the preparation of

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

Question-8. Controlling function of an organization is

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

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

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

Question-10. Controlling is related to:

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

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

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

Question-12. First step in controlling process is:

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

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

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

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

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

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

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

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

Question-17. Technique for measurement of performance:

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

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

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

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

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

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

Question-21. Which function of management is controlling?

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

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

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

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

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

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

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

Question-25. Which standard is associated with production?

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

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

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

Question-27. Controlling is

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Question-36. The controlling function is performed by

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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



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