Under the limitation ‘Costly affair’, managers must ensure that the costs of installing and operating a control system should not exceed ________.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → the benefits derived from it
Control is a costly affair: it needs a lot of expenditure, time and effort. A control system is worth having only when its benefits are greater than its costs. For this reason, a small enterprise cannot justify an expensive control system.
NCERT (2026-27 Edition): “(iv) Costly affair: Control is a costly affair as it involves a lot of expenditure, time and effort. A small enterprise cannot afford to install an expensive control system. It cannot justify the expenses involved. Managers must ensure that the costs of installing and operating a control system should not exceed the benefits derived from it. …” |