Exam Tomorrow · Class 12 Business Studies · Chapter 8

Controlling Quick Revision

Standards, measurement, deviations and corrective action—the full control cycle in minutes.

60-second revision

  • Controlling ensures that actual performance conforms to planned performance.
  • The process includes setting performance standards, measuring actual performance, comparing it with standards, analysing deviations and taking corrective action.
  • Critical point control and management by exception help managers focus attention where it matters most.
  • Planning and controlling are inseparable: planning sets standards and controlling checks whether plans are being achieved.

Keywords to remember

standards · actual performance · deviation · corrective action · management by exception

Common mistakes

  • Controlling is not only about finding faults; it is also about corrective action and improvement.
  • Do not write planning and controlling as opposites—they support each other.

Important questions

  1. Explain the steps in the controlling process.
  2. Explain the relationship between planning and controlling.
  3. What is management by exception?

Quick MCQ check

Question 1: After measuring actual performance, the next major step is to:

  • Compare it with standards
  • Recruit employees
  • Set a brand name
  • Issue shares

Explanation: Control requires comparison of actual results with standards.

Question 2: Management by exception means managers focus mainly on:

  • Every tiny detail equally
  • Significant deviations
  • Only profits
  • Only staffing

Explanation: Managers concentrate on important deviations requiring attention.

Question 3: Planning and controlling are:

  • Unrelated
  • Interdependent
  • Mutually exclusive
  • Only finance functions

Explanation: Plans provide standards for control, and control provides feedback for future planning.

Practice Business Studies case studies · Important questions · Timed exam mode