Which of the statements relating to techniques of managerial control are true?

(A) Ratio analysis is a modern technique of managerial control.

(B) PERT and CPM are modern techniques of managerial control.

(C) Return on investment is a traditional technique of managerial control.

(D) Breakeven analysis is not a modern technique of managerial control.

(E) Management audit is not a traditional technique of managerial control.

Choose the correct answer from the options given below :

(A), (B), (D) and (E) Only

The correct answer is option (2)-  (A), (B), (D) and (E) Only.

(A) Ratio analysis is a modern technique of managerial control. This is true.

(B) PERT and CPM are modern techniques of managerial control. This is true. 

(C) Return on investment is a traditional technique of managerial control. This is false as it is a modern technique.

(D) Breakeven analysis is not a modern technique of managerial control. This is true. 

(E) Management audit is not a traditional technique of managerial control. This is true. 

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