Which advantage of critical point control and management by exception…

The correct answer is Option (4) → It identifies critical problems which need timely action.

Option (1) It focuses managerial attention on important areas. — Incorrect. Attention on important areas leads to better use of managerial talent.

Option (2) It saves the time and efforts of managers. — Incorrect. Managers deal only with significant deviations, so this advantage is about saving their time and effort.

Option (3) It facilitates delegation of authority. — Incorrect. Routine problems are left to subordinates, so this advantage is about delegation of authority and higher morale.

Option (4) It identifies critical problems which need timely action. — Correct. Picking out critical problems that need timely action lets managers act in time. This keeps the organisation on the right track.