Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

_________ is a type of modern technique of Controlling.

Options:

Return on Investment

Budgetary Control

Personal Observation

Break even Analysis

Correct Answer:

Return on Investment

Explanation:

The correct answer is Option (1) - Return on Investment

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