AmbifulWorksheets
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CBSE · Class 12 · Business Studies

Controlling

Standard difficulty · 20 questions · 40 marks · Time: 38 minutes

Name: Date: Score: ____ / 40

Show your working for Sections B and C. Answers are on the last page — try every question first!

Section A — Choose the correct answer8 × 1 = 8 marks
1.
Controlling means ensuring that activities are performed:
  1. only by top managers
  2. without standards
  3. without any plans
  4. according to plans
2.
What is meant by “standard”?
  1. a criterion against which performance is measured
  2. steps taken to remove the causes of deviations
  3. areas critical to the success of the firm
  4. reporting only significant deviations to management
3.
If deviations are caused by obsolete machinery, the corrective action is to:
  1. improve working conditions
  2. change the quality specification or the supplier
  3. repair or replace the machines
  4. modify the existing process
4.
Regular checks keep the firm on track to meet its yearly target. Which importance of controlling does this show?
  1. accomplishing organisational goals
  2. improving employee motivation
  3. ensuring order and discipline
  4. judging the accuracy of standards
5.
Which of these is an example of management by exception?
  1. A hospital closely watches the supply of oxygen cylinders, a key result area.
  2. An airline closely checks the safety of its aircraft engines above all else.
  3. Only complaints that stay unsolved for a week are sent to the manager.
  4. A factory watches the cost of labour closely, as it is 60% of total cost.
6.
In which step of the controlling process does this happen: output of 470 units is checked against the target of 500?
  1. measuring actual performance
  2. taking corrective action
  3. setting performance standards
  4. comparing actual performance with standards
7.
The standard output of a unit is 5,600 pieces a week; actual output is 6,160. What is the deviation as a percentage of the standard?
  1. 20%
  2. 560%
  3. 10%
  4. 11%
8.
Under management by exception, only deviations of more than 3% are reported. Standard cost is ₹8,400 and actual cost is ₹9,660. What should happen?
  1. it is reported to management (a 15% deviation)
  2. the whole plan is dropped
  3. the standard is cancelled
  4. no check is needed at all
Section B — Short answer8 × 2 = 16 marks
9.
What is controlling?
10.
Explain each term: (a) management by exception (b) key result areas
11.
Put these steps of the controlling process in order: (a) measuring actual performance (b) taking corrective action (c) setting performance standards
12.
Suggest a corrective action if deviations arise from (a) defective process (b) poor working conditions.
13.
Is each critical point control or management by exception? (a) A shop keeps a strict watch on stock of its fastest-selling item. (b) An airline closely checks the safety of its aircraft engines above all else.
14.
Planned sales were ₹2,800 and actual sales were ₹3,220. Find the deviation and the percentage deviation. Is it favourable?
15.
Which importance of controlling does each show? (a) Comparing results shows the standard set was too high. (b) Regular checks keep the firm on track to meet its yearly target.
16.
Under management by exception, deviations above 8% are reported. (a) Standard 9,000 units, actual 9,900 (b) Standard 9,600 units, actual 11,040. Find each percentage deviation and decide.
Section C — Word problems4 × 4 = 16 marks
17.
Explain the importance of controlling.
18.
Match each with its meaning: (a) management by exception (b) deviation (c) key result areas. Choose from: reporting only significant deviations to management; areas critical to the success of the firm; the difference between actual and planned performance.
19.
Read about Shreeji Traders Ltd. (a) Checks reduce waste and spoilage of materials. (b) Every department works towards the same standards. (c) Regular checks keep the firm on track to meet its yearly target. Identify the importance of controlling in each part and explain it briefly.
20.
Brightway Toys Ltd set a standard of 7,600 units a month. Actual output was 8,740. Deviations above 5% go to the top manager. (a) Find the deviation in units and as a percentage. (b) Should it be reported? (c) If the cause is obsolete machinery, what corrective action should be taken?
AmbifulWorksheets
Practice that never repeats
CBSE · Class 12 · Business Studies

Answer key

Controlling · AW-12BS-CTL-2026-V1 · For parents — fold back or tear off before handing the sheet to your child.

QAnswerWorking
1(d) according to plans—
2(a) a criterion against which performance is measured—
3(c) repair or replace the machines—
4(a) accomplishing organisational goals—
5(c) Only complaints that stay unsolved for a week are sent to the manager.—
6(d) comparing actual performance with standards—
7(c) 10%560 ÷ 5,600 × 100
8(a) it is reported to management (a 15% deviation)—
9The function of ensuring that activities in the organisation are performed as planned.—
10(a) reporting only significant deviations to management (b) areas critical to the success of the firm—
11c, a, bsetting performance standards → measuring actual performance → taking corrective action
12(a) modify the existing process (b) improve working conditions—
13(a) critical point control (b) critical point control—
14₹420; 15%; favourable3,220 − 2,800; ÷ 2,800 × 100
15(a) judging the accuracy of standards (b) accomplishing organisational goals—
16(a) 10%: report (b) 15%: reportdeviation ÷ standard × 100
17Accomplishing goals, judging the accuracy of standards, making efficient use of resources, improving employee motivation, ensuring order and discipline, and facilitating coordination.—
18(a) reporting only significant deviations to management (b) the difference between actual and planned performance (c) areas critical to the success of the firm—
19(a) making efficient use of resources: it reduces waste and spoilage (b) facilitating coordination in action: all departments work to common standards (c) accomplishing organisational goals: control keeps work moving towards the goals—
20(a) 1,140 units, 15% above standard (b) yes (c) repair or replace the machines8,740 − 7,600; ÷ 7,600 × 100