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.