Business StudiesControlling

Identify the technique of managerial control in which all operations…

Identify the technique of managerial control in which all operations are planned in advance and the focus is on specific and time bound targets.

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Budgetary control

Option (1) Critical path method — Incorrect. This is a network technique for planning and controlling the time and cost of a project.
Option (2) Responsibility accounting — Incorrect. Here different departments are made responsibility centres, and each head is held responsible for the results of his centre.
Option (3) Budgetary control — Correct. Budgetary control is a technique of managerial control in which all operations are planned in advance in the form of budgets, and actual results are compared with the budgets. One of its advantages is that budgeting focuses on specific and time-bound targets. Both parts of the question match budgetary control.
Option (4) Breakeven analysis — Incorrect. This studies the link between cost, volume and profit, and finds the level of sales with no profit and no loss.

Note: The current NCERT book (2026-27) only names budgetary control as a technique of control. What budgetary control means is explained in the pre-rationalised NCERT, from which the extract below is taken.

NCERT (Pre-rationalised Edition): “Budgetary Control Budgetary control is a technique of managerial control in which all operations are planned in advance in the form of budgets and actual results are compared with budgetary standards. This comparison reveals the necessary actions to be taken so that organisational objectives are accomplished.”

“Budgeting offers the following advantages: 1. Budgeting focuses on specific and time-bound targets and thus, helps in attainment of organisational objectives.”

Identify the technique of managerial control in which all operations are planned in advance and the focus is on specific and time bound targets.

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Budgetary control

Option (1) Critical path method — Incorrect. This is a network technique for planning and controlling the time and cost of a project.
Option (2) Responsibility accounting — Incorrect. Here different departments are made responsibility centres, and each head is held responsible for the results of his centre.
Option (3) Budgetary control — Correct. Budgetary control is a technique of managerial control in which all operations are planned in advance in the form of budgets, and actual results are compared with the budgets. One of its advantages is that budgeting focuses on specific and time-bound targets. Both parts of the question match budgetary control.
Option (4) Breakeven analysis — Incorrect. This studies the link between cost, volume and profit, and finds the level of sales with no profit and no loss.

“Budgeting offers the following advantages: 1. Budgeting focuses on specific and time-bound targets and thus, helps in attainment of organisational objectives.”