Which is not the traditional technique of controlling ?

Ratio Analysis

The correct answer is option 3- Ratio Analysis.

Ratio Analysis is not the traditional control technique.

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

*Ratio analysis is a technique used in financial analysis to evaluate the financial performance and position of a company. By using key financial ratios derived from a company's financial statements (such as the balance sheet and income statement), ratio analysis helps assess the company's profitability, liquidity, solvency, and operational efficiency. These ratios provide insights for investors, creditors, and management to make informed decisions about the company's financial health.

* Personal observation: Personal observation generally refers to the act of watching and noting the behaviors or characteristics of something. It is not specifically a technique used to study the relationship between costs, volume, and profits.

* Budgetary Control: Budgetary control involves the process of creating budgets, comparing actual results with the budgeted figures, and taking corrective actions as needed.

* Statistical Reports: While statistical reports can provide valuable data for decision-making, they are not inherently a specific technique for studying the relationship between costs, volume, and profits.