Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:
Critical point control focuses on which of the following?
Options:
Key result areas
Every activity
Actual output
Management by Exception
Correct Answer:
Key result areas
Explanation:
Critical Point Control: It is neither economical nor easy to keep a check on each and every activity in an organisation. Control should, therefore, focus on key result areas (KRAs) which are critical to the success of an organisation. These KRAs are set as the critical points. If anything goes wrong at the critical points, the entire organisation suffers. For instance, in a manufacturing organisation, an increase of 5 per cent in the labour cost may be more troublesome than a 15 per cent increase in postal charges.