Which of the following statement is incorrect regarding Modern Techniques of controlling?

PERT and CPM are used to do costing.

The correct answer is option (3)-  PERT and CPM are used to do costing.

Return on investment is measuring whether invested capital has been used effectively for generating returns. This is correct. ROI is a financial metric used to evaluate the efficiency of an investment or compare the efficiencies of several different investments. It measures the return on the capital invested.

Ratio analysis refers to analysing financial statements. This is correct. Ratio analysis involves evaluating the financial statements of a company (such as the income statement and balance sheet) using various ratios to assess financial health, performance, and make comparisons over time or with industry standards.

PERT and CPM are used to do costing. This is incorrect. PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method) are project management techniques used to plan, schedule, and control the time frame of projects. They are not primarily used for costing, although they can assist in determining time-related costs or resource allocation. The main purpose of PERT and CPM is to manage the time, resources, and tasks associated with a project.

Management Audit is a systematic appraisal of the overall performance of the management. This is correct. A management audit is an evaluation of the effectiveness and efficiency of management in achieving organizational goals. It systematically reviews management practices, performance, and decision-making processes to recommend improvements.