CBSE Class 12 Controlling Case Study Questions with Answers

Practice CBSE Class 12 Controlling with original chapter-wise case-study practice with answers and concept-identification guidance. Original study material by Smit Sir Commerce; not an official CBSE paper.

Board: CBSE · Class: 12 · Subject: Business Studies · Access: Free

Case-study preparation

Controlling measures actual performance against planned standards and initiates corrective action. The notes explain the control process, its importance, limitations and its close relationship with planning.

The interactive page presents an original application case. Focus on identifying the concept from facts rather than copying a definition.

  • Be ready to apply Meaning, nature and importance of controlling to a short business situation.
  • Be ready to apply Relationship between planning and controlling to a short business situation.
  • Be ready to apply Steps in the controlling process to a short business situation.
  • Be ready to apply Critical point control and management by exception to a short business situation.
  • Be ready to apply Corrective action to a short business situation.

Answering strategy

  1. Present the controlling steps in the correct order.
  2. Explain planning and controlling as inseparable twins.
  3. Apply management by exception to performance deviations.

ANSWER-FIRST PRACTICE

Solved case study: Controlling

A manufacturer fixes a monthly defect standard of 2%. At month-end the actual defect rate is 5%. The production manager investigates the significant deviation, finds a machine-calibration problem and schedules corrective maintenance.

Q1. Which controlling steps are visible?

Answer: Setting standards, measuring actual performance, comparing actual performance with standards, analysing deviations and taking corrective action.

Q2. What does the 3 percentage-point gap represent?

Answer: It is a deviation between the standard performance of 2% defects and actual performance of 5% defects.

Q3. Which idea supports focusing attention on this significant gap?

Answer: Management by exception: managers concentrate attention on important deviations rather than treating every small variation equally.

These are original learning questions prepared by Smit Sir Commerce, not claimed official CBSE questions.

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