Given below are two statements:
Statement I: Control is a costly affair as it involves a lot of expenditure, time and effort.
Statement II: Management by exception saves the time and efforts of managers, as they deal with only minor deviations.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Statement I is correct but Statement II is incorrect.
Statement I: Control is a costly affair as it involves a lot of expenditure, time and effort. — Correct. Control needs money, time and effort. A small enterprise cannot afford an expensive control system, and its cost should not be more than its benefits.
Statement II: Management by exception saves the time and efforts of managers, as they deal with only minor deviations. — Incorrect. Managers save time because they deal with only significant deviations, those that cross the permissible limit. The minor ones are left to subordinates.
NCERT (2026-27 Edition): “(iv) Costly affair: Control is a costly affair as it involves a lot of expenditure, time and effort. A small enterprise cannot afford to install an expensive control system. It cannot justify the expenses involved. Managers must ensure that the costs of installing and operating a control system should not exceed the benefits derived from it. …”
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