Which of the following is not a modern technique of managerial control?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Break even analysis.
Break even analysis is not a modern technique of managerial control.
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