Controlling is the chapter that is outlined in a clear and simple way. Controlling is the comparison of actual performance with the planned performance. This chapter comprises of various concepts – meaning and definition of controlling, importance of controlling, limitations of controlling, relationship between planning and controlling, controlling process, deviation, techniques of managerial control, traditional technique – personal observation, statistical reports, budgetary control, modern techniques – ratio analysis, liquidity ratio, solvency ratio, profitability ratio, turnover ratio, management audit, responsibility accounting, cost centre, revenue centre, profit centre, investment centre. These are the concepts that have to be covered while preparing for the class 12 board examinations.
Frequently asked Questions on CBSE Class 12 Business Studies Notes Chapter 8: Controlling
What is the meaning of ‘budgetary control’?
Budgetary control is financial jargon for managing income and expenditure. In practice it means regularly comparing actual income or expenditure to planned income or expenditure to identify whether or not corrective action is required.
What is ‘Management audit’?
A management audit is an assessment of how well an organization’s management team is applying its strategies and resources.
What is ‘Turnover ratio?
The turnover ratio or turnover rate is the percentage of a mutual fund or other portfolio’s holdings that have been replaced in a given year.