Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Modern techniques of controlling include:

A. Return on Investment
B. Management Audit
C. Statistical reports
D. Management information system
E. Breakeven analysis

Choose the correct answer from the option given below.

Options:

A, B and C only

A, B and E only

A, B and D only

A, C and D only

Correct Answer:

A, B and D only

Explanation:

The various techniques of managerial control may be classified into two broad categories: traditional techniques, and modern techniques.

Traditional techniques are those which have been used by the companies for a long time now. However, these techniques have not become obsolete and are still being used by companies. These include:
(a) Personal observation
(b) Statistical reports
(c) Breakeven analysis
(d) Budgetary control

Modern techniques of controlling are those which are of recent origin and are comparatively new in management literature. These techniques provide a refreshingly new thinking on the ways in which various aspects of an organisation can be controlled. These include:
(a) Return on investment
(b) Ratio analysis
(c) Responsibility accounting
(d) Management audit
(e) PERT and CPM
(f) Management information system