Which of the following statements about analysing deviations is NOT correct?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Deviations and their causes are reported, and corrective action is taken at the top level.
Option (1) Deviations and their causes are reported, and corrective action is taken at the top level. — False. The deviations and their causes are reported, and corrective action is taken at the appropriate level. It need not be the top level.
Option (2) Some deviation in performance can be expected in all activities. — True. Some deviation can be expected in every activity.
Option (3) It is important to determine the acceptable range of deviations. — True. Because some deviation is normal, the manager fixes an acceptable range.
Option (4) After the deviations that demand managerial attention are identified, they are analysed for their causes. — True. Deviations that need the manager’s attention are picked out first. Then they are analysed for their causes.
NCERT (2026-27 Edition):
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