Your cart is empty.
Practice each question, then open the answer or worked solution.
Explain the meaning of controlling.
Controlling is referred to as the process of evaluation of the work that is done. It is all about setting standards for the work and then comparing the actual work that is done with the standard. It ensures that all the activities in an organisation are performed as per the decided plan.
Name the principle that a manager should consider while dealing with deviations effectively. State any one situation in which an organisation’s control system loses its effectiveness.
The principle that should be adopted to deal with deviations is management by exception. An organisation’s control system loses effectiveness when standards are not able to be defined in quantitative terms. For example, job satisfaction will be different for different employees.
State any one situation in which an organisation’s control system loses its effectiveness.
A control system is bound to lose its effectiveness whenever the standards cannot be defined in quantitative terms, thereby making it difficult to measure deviations happening between actual and standard performance. For example, job satisfaction cannot be described in quantitative terms as it is different for different employees.
Give any two standards that can be used by a company to evaluate the performance of its Finance & Accounting department.
Standards that are used by a company for evaluating the performance of the Finance and Accounting department are as follows:
1. Liquidity
2. Flow of Capital
Which term is used to indicate the difference between standard performance and actual performance?
The deviation is the term that is used to indicate the difference between standard and actual performance.