MCQ questions on Techniques of Controlling

1. Which of the following is not true about direct supervision and Observation in
management:A. It is the oldest technique of controlling.
B. Enables the supervisor to get firsthand information,
C. It enables the supervisor himself observes the employees and their work.
D. This technique is most suitable for a big-sized business.
2. From the following which is false statement?
A. Financial Statements gives a summary of the income and expenses for a specified
period of time.
B. Balance Sheet shows the financial position of the organization at the end of the
specified period.
C. Financial statements are used to control the organization comparing the figures of the
current year with the previous year's figures and with the figures of other similar
organizations.
D. Ratio analysis helps to understand the profitability, liquidity and solvency position of
the business.
E. None of the above
3. From the following which is wrong about Break Even Analysis in management.
A.
B.
C.
D.

Break Even Point is the point of no profit, no loss.

Any sale below BEP will earn profits
Any sale above BEP will cause loses.
The Break-even analysis acts as a control device to find out the company's
performance.
E. B & C
4. From the following which is wrong about Return on Investment (ROI):A. It is a popular financial metric for evaluating the financial consequences of
investments and actions.
B. If the ROI is high then the financial performance of a business is good
C. If the ROI is low then the financial performance of a business is good
D. ROI helps the business to compare its present performance with that of previous
years' performance and also shows the areas where corrective actions are needed.

5. Which of the following is true about Management by Objectives (MBO)?

A. MBO facilitates planning and control.
B. Objectives for individuals are jointly fixed by the superior and the subordinate

C. Improves employee motivation and commitment, and ensures better communication

between management and employees
D. Periodic evaluation and regular feedback to evaluate individual performance and
Achievement of objectives brings rewards to individuals.
E. All of the above
6. From the following which one is true?
A. Management Audit is an evaluation of the management as a whole and it critically
examines the full management process like planning, organizing, directing, and
controlling.
B. Management Information System (MIS) collects data about the company from
internal or external, processes it and provides it to the managers manually or
computerized.
C. A & B
D. None of the above
7. Which of the following steps is correct to put MBO into practice?

A.
B.
C.
D.

I.
Stimulating the participation of employees in setting objectives
II.
Determine or revise organizational objectives for the entire company
III.
Translating the organizational objectives to employees
IV. Monitor the progress.
V. Progress is evaluated and rewarded
II,III,I,IV,V
II,III,I, V, IV
I,III,II,IV,V
III,I,II,IV,V

8. From the following which the advantage of PERT (Program Evaluation and
Review)?
A. It forces managers to organize and quantify project information and provides them
with a graphic display of the project.
B. It can help them to identify which activities are critical to the project completion time
C. It can help the managers which activities involve slack time and can be delayed
without affecting the project completion time.
D. It can be used to minimize the total time or the total cost required to perform the total
operations.
E. All of the above
9. From the following which sentence is correct about Critical Path Method (CPM)
and (Program Evaluation and Review)?
A. CPM is applicable for those projects where the activity time is well known.

B. PERT is suitable for projects that have unpredictable activities while the Critical Path
Method (CPM) is a project management tool which is suitable for projects that have
predictable activities.
C. CPM uses a single estimate for the time that a project can be completed while PERT
uses three estimates for the time that it can be completed.
D. CPM is a deterministic project management tool while PERT is a probabilistic project
management tool
E. All of the above

10. From the following which is false?

A. Self-Control means self-directed control in which a person is given freedom to set his
own targets, evaluate his own performance and take corrective measures as and when
required.
B. Self-control is required for top level managers
C. Self-control means no control by the superiors
D. Budgetary control is done for all aspects of a business for planning and controlling of
financial issues.
11. Which one of the following is not the scope of controlling
A. Control over production
B. Control over tool & equipment
C. Control over R & D
D. A&C
E. All of the above
12. Henry Fayol is said that management control seek to compel events to conform to
plans
A. False
B. True
13. Requirement of effective control system cant be explained by
A.
B.
C.
D.

Feed back
Intelligible
Suggest the standard
Forward looking

14. Special control system explained under

A. Requirement of effective control
B. Technique of control
C. Control process

D. None
15. Measuring performance with established standard is the second steps in control
process
A. True
B. False
16. PERT/CPT system important for control technique for project management suitable
for
A.
B.
C.
D.

Ship building
Building construction
Planning & launching new project
Small industries

17. Which one of the following parameters is not used to formulate break-even point
A.
B.
C.
D.

Fixed cost
Contribution per unit
Profit
None

18. The effective control system can be enhance by suggestion of remedial action
A. False
B. True
19. Which one of the following the basic building blocks of a PERT network
A.
B.
C.
D.

Events
Activities
A&B
None

20. Limitations of PERT/CPM is described by

A.
B.
C.
D.

Error
Application
Time consuming
All of the above

21. ______________is the last functions of management

A. Directing
B. Supervision

C. Controlling
D. Leadership
22. ________________ Functions will be unnecessary to the management if other
functions of management are performed properly
A.
B.
C.
D.

Supervision
Departmentation
Directing
Controlling

23. Which one is true about controlling

A.
B.
C.
D.

It is the measurement of accomplishment against the standards

It guides to achieve some pre-determined goal
It assure how resources are used effectively and efficiently
All

24. The term control covers all the activities of a business concern
A. True
B. False
25. The main purpose of controlling is
A.
B.
C.
D.

Suggesting remedial action

Prompt reporting
Prevention
None

26. The last steps in controlling process is

A.
B.
C.
D.

Comparison of actual with standard

Measuring performance
Taking corrective action
Establishing standards

27. Number of unit produced, number of men, hours employed, total cost incurred are used to
indicate
A.
B.
C.
D.

Measuring performance
Standards
A&B
None

28. ____________is the process of adjusting future actions based upon the information
regarding past performance.
A.
B.
C.
D.

Flexibility
Intelligible
Feedback
Motivation

29. Main areas of control are

A.
B.
C.
D.

Organization
Production
Public relation
All

30. All are causes of deviation except

A.
B.
C.
D.

Lack of proper training

Adequate communication
Defective system of wage payment
Lack of motivation