Which of the following is not a modern technique of managerial control?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Personal Observation
Option (1) PERT & CPM — A modern technique (Incorrect). It is a modern technique.
Option (2) Ratio Analysis — A modern technique (Incorrect). It is a modern technique.
Option (3) Personal Observation — Not a modern technique (Correct). It is a traditional technique. Traditional techniques are personal observation, statistical reports, breakeven analysis and budgetary control. Modern techniques are return on investment, ratio analysis, responsibility accounting, management audit, PERT and CPM, and Management Information System.
Option (4) Return on Investment — A modern technique (Incorrect). It is a modern technique.
NCERT (2026-27 Edition): “Summary … Personal observation, statistical reports, breakeven analysis and budgetary control are traditional techniques of managerial control.” “Return on investment, ratio analysis, responsibility accounting, management audit, PERT and CPM and Management Information System are modern techniques of managerial control.” |