Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:
When the deviations between the actual performance and the planned performance are within the limits, which of the following course of action is suggested?
Options:
A limited corrective action is required
No corrective action is required
A major corrective action is required
None of the above
Correct Answer:
No corrective action is required
Explanation:
Analysing Deviations: Some deviation in performance can be expected in all activities. It is, therefore, important to determine the acceptable range of deviations. Also, deviations in key areas of business need to be attended more urgently as compared to deviations in certain insignificant areas. Critical point control and management by exception should be used by a manager in this regard.