Consider the following statements about analysing deviations:
(A) Some deviation in performance can be expected in all activities.
(B) Defective process can be a cause of deviations.
(C) Deviations are analysed for their causes before the deviations that demand managerial attention are identified.
(D) Organisational constraints can be a cause of deviations.
How many of the above statements are correct?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Three
(A) Some deviation in performance can be expected in all activities. — Correct. No activity goes fully to plan, so some deviation is expected. This is why an acceptable range of deviation is fixed.
(B) Defective process can be a cause of deviations. — Correct. A defective process is one cause of deviations, along with unrealistic standards and inadequacy of resources.
(C) Deviations are analysed for their causes before the deviations that demand managerial attention are identified. — Incorrect. The order is the other way round. First the deviations that need managerial attention are picked out. Only then are they analysed for their causes.
(D) Organisational constraints can be a cause of deviations. — Correct. Organisational constraints are another cause of deviations.
NCERT (2026-27 Edition): “Step 4: Analysing Deviations: Some deviation in performance can be expected in all activities. It is, therefore, important to determine the acceptable range of deviations. Also, deviations in key areas of business need to be attended more urgently as compared to deviations in certain insignificant areas. …” “Step 4: Analysing Deviations: … After identifying the deviations that demand managerial attention, these deviations need to be analysed for their causes. Deviations may have multiple causes for their origin. These include unrealistic standards, defective process, inadequacy of resources, structural drawbacks, organisational constraints and environmental factors beyond the control of the organisation. …” |