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

Budgetary control

The correct answer is Option 3 - Budgetary control.

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

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. A budget is a quantitative statement for a definite future period of time for the purpose of obtaining a given objective. It is also a statement which reflects the policy of that particular period. It will contain figures of forecasts both in terms of time and quantities.

OTHER OPTIONS

• Breakeven Analysis: Breakeven analysis is a fundamental tool in managerial accounting that helps businesses determine the point at which total revenue equals total costs, resulting in no profit or loss. It allows managers to understand the relationship between fixed costs, variable costs, and the sales price per unit, thus helping them make informed decisions about pricing, production, and sales strategies.

• Responsibility Accounting: Responsibility accounting is a system of accounting in which different sections, divisions and departments of an organisation are set up as ‘Responsibility Centres’. The head of the centre is responsible for achieving the target set for his centre.

• Critical Path Method:  CPM (Critical Path Method) is an important network technique useful in planning and controlling. This technique is especially useful for planning, scheduling and implementing time bound projects involving performance of a variety of complex, diverse and interrelated activities. This technique deals with time scheduling and resource allocation for these activities and aims at effective execution of projects within given time schedule and structure of costs.