Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Critical point control focuses on which of the following?

Options:

Key result area

Every activity

Actual output

Management by Exception

Correct Answer:

Key result area

Explanation:

The correct answer is option 1- Key result area.

Critical point control focuses on Key result area.

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 percent in the labour cost may be more troublesome than a 15 percent increase in postal charges.