Which of the following is not related with "Critical point of control" concept?

A. Control should focus on key result areas

B. KRA's can never be set as critical points

C. It is very easy and economical to keep a check and every activity of organization

D. If anything goes wrong at the critical points the entire organization suffers

E. In manufacturing organization, an increase of 5% in labour cost may be more troublesome than a 15% increase in postal charges

Choose the correct answer from the options given below :

C and B only

The correct answer is option (2)- C and B only.

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.

B. KRA's can never be set as critical points- NOT TRUE as KRAs are set as the critical points.

C. It is very easy and economical to keep a check and every activity of organization- NOT TRUE as it is neither economical nor easy to keep a check on each and every activity in an organisation.

Thus, statement B & C are not related to critical point control.