The correct answer is option (2)- A-IV, B-III, C-I, D-II.
| List I |
List II |
| A. Significant deviations beyond the permissible limit should be controlled |
IV. Management by exception |
| B. Repair of defective machinery |
III. Corrective Action |
| C. Judging accuracy of standards |
I. Controlling |
| D. Focus on key result areas |
II. Critical Point Control |
- A. Significant deviations beyond the permissible limit should be controlled matches with IV. Management by exception.
Management by exception, which is often referred to as control by exception, is an important principle of management control based on the belief that an attempt to control everything results in controlling nothing. Thus, only significant deviations which go beyond the permissible limit should be brought to the notice of management. Thus, if the plans lay down 2 per cent increase in labour cost as an acceptable range of deviation in a manufacturing organisation, only increase in labour cost beyond 2 percent should be brought to the notice of the management. However, in case of major deviation from the standard (say, 5 percent), the matter has to receive immediate action of management on a priority basis.
- B. Repair of defective machinery matches with III. Corrective Action.
When machinery breaks down or becomes defective, taking steps to fix it is an example of corrective action. If machinery is defective or malfunctioning, the repair of the machinery is a corrective action because it directly addresses the issue of the defect and aims to bring the machinery back into proper working condition.
- C. Judging accuracy of standards matches with I. Controlling.
A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes.
- D. Focus on key result areas matches with II. Critical Point Control.
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. | 
