CLASS XII: CHAPTER 8 QUESTION BANK
Controlling | 10 Practice Sets (CBSE 2026-27)
📌 General Instructions for All Sets:
- Maximum Marks: 25 | Time Allowed: 45 Minutes
- Questions 1-5 are objective type carrying 1 mark each (MCQs & Assertion-Reasoning).
- Questions 6-7 are short answer type carrying 3 marks each (30-40 words).
- Questions 8-9 are short answer type carrying 4 marks each (50-80 words).
- Question 10 is a long answer type carrying 6 marks (100-150 words).
- Strictly adhere to the CBSE Competency/Case-Based format.
📄 PRACTICE PAPER - SET 1 (Level: Easy - Fundamental Concepts)
SECTION A (1 Mark Each)
1. Which function of management ensures that actual activities conform to planned activities?
[Case-Based] A manager defines that a worker must produce 10 units of output per day.
2. This represents which step of the controlling process?3. Planning without controlling is meaningless, and controlling without planning is:
4. Assertion (A): Controlling is a continuous process.
Reason (R): It is not a one-time activity; it involves constant review of actual performance and revision of standards if necessary.
Reason (R): It is not a one-time activity; it involves constant review of actual performance and revision of standards if necessary.
5. Assertion (A): Controlling is a pervasive function.
Reason (R): Controlling is required only at the top level of management to review the company's overall profits.
Reason (R): Controlling is required only at the top level of management to review the company's overall profits.
SECTION B (3 Marks Each)
6. Define 'Controlling'. State any two points of its importance.
[Case-Based] The management of 'Alpha Printers' noticed a consistent delay in printing orders. Upon investigation, they found that the printing machines were outdated and frequently breaking down. They immediately ordered new machinery.
7. Identify the step of the controlling process highlighted here. Explain it briefly.
SECTION C (4 Marks Each)
8. Explain how controlling helps in 'judging accuracy of standards' and 'making efficient use of resources'.
[Case-Based] "Controlling is looking back, whereas planning is looking ahead."
9. Do you agree with this statement? Explain the relationship between planning and controlling to justify your answer.
SECTION D (6 Marks Each)
[Case-Based] 'Zeta Electronics' wanted to improve its customer service. The CEO established a target: "All customer complaints must be resolved within 24 hours." At the end of the month, the HR manager gathered data from the call center logs to see how long it actually took to resolve complaints. He found that the average resolution time was 36 hours. The CEO was informed, and he held a meeting to find out why there was a 12-hour delay. They discovered that the customer service executives lacked technical training. Therefore, the CEO immediately arranged a mandatory 3-day technical training workshop for all executives.
10. By quoting lines from the paragraph, identify and explain the **first four steps** of the controlling process followed by 'Zeta Electronics'.
📄 PRACTICE PAPER - SET 2 (Level: Moderate - Application & Analysis)
SECTION A (1 Mark Each)
1. Which of the following is NOT a limitation of controlling?
[Case-Based] A manager checks the CCTV footage of the factory floor to ensure workers are not wasting time.
2. This action highlights which importance of controlling?[Case-Based] The standard production is 100 units. The actual production is 95 units. The difference of 5 units is called:
3.
4. Assertion (A): Employees often resist controlling systems like CCTV cameras or biometric attendance.
Reason (R): They feel that their freedom is being restricted and they are being constantly monitored.
Reason (R): They feel that their freedom is being restricted and they are being constantly monitored.
5. Assertion (A): Measurement of performance should ideally be done after the task is completely finished.
Reason (R): Measuring performance during the task might interrupt the workflow; hence, post-task measurement is the only effective way.
Reason (R): Measuring performance during the task might interrupt the workflow; hence, post-task measurement is the only effective way.
SECTION B (3 Marks Each)
6. Explain how controlling 'improves employee motivation'.
[Case-Based] 'Bright Minds School' wanted to evaluate the performance of its teachers. However, they found it extremely difficult to mathematically measure how well a teacher instills moral values in the students.
7. Identify and explain the limitation of controlling highlighted here.
SECTION C (4 Marks Each)
8. Explain the first two steps of the Controlling process.
[Case-Based] "Controlling is both a backward-looking and a forward-looking function."
9. Do you agree with this statement? Give reasons to support your answer.
SECTION D (6 Marks Each)
[Case-Based] 'PureDairy Ltd.' set a target to sell 50,000 packets of milk daily. They ensured that all departments worked together seamlessly to achieve this specific number. The delivery trucks were tracked by GPS to prevent drivers from taking unauthorized breaks, ensuring a strict professional environment. Because the delivery boys knew their target was exactly 500 packets per truck per day and their bonus depended on it, they worked with great enthusiasm. Whenever the sales dropped below 48,000 packets, the manager would immediately investigate whether the initial target of 50,000 was realistically achievable in the current market.
10. By quoting lines from the paragraph, identify and explain **four points of importance** of controlling highlighted in the case of 'PureDairy Ltd.'
📄 PRACTICE PAPER - SET 3 (Level: Moderate-High - Nuanced Competency)
SECTION A (1 Mark Each)
1. The principle which states that 'an attempt to control everything results in controlling nothing' is:
[Case-Based] A manager focuses his controlling efforts primarily on Key Result Areas (KRAs) which are critical to the success of an organization.
2. This concept is known as:3. In the controlling process, what immediately follows the 'Measurement of Actual Performance'?
4. Assertion (A): Quantitative standards are better than qualitative standards.
Reason (R): Quantitative standards make the comparison with actual performance much easier and more objective.
Reason (R): Quantitative standards make the comparison with actual performance much easier and more objective.
5. Assertion (A): A manager should bring every minor deviation to the notice of top management.
Reason (R): Minor deviations can quickly snowball into major disasters if ignored by the top-level executives.
Reason (R): Minor deviations can quickly snowball into major disasters if ignored by the top-level executives.
SECTION B (3 Marks Each)
6. Differentiate between 'Critical Point Control' (CPC) and 'Management by Exception' (MBE).
[Case-Based] The management of 'QuickBuild' set a target to construct a building in 6 months. However, due to a sudden nationwide transport strike and a drastic change in government taxation laws, raw materials were delayed, and the building took 9 months to complete.
7. Identify the limitation of controlling highlighted here. State one other limitation of controlling.
SECTION C (4 Marks Each)
8. Explain the step 'Analyzing Deviations' in the controlling process. Why is it necessary to find the exact cause of deviation?
9. "Planning and Controlling are inseparable twins of management." Elaborate on this statement.
SECTION D (6 Marks Each)
[Case-Based] 'Alpha Garments' allows a 2% defect rate in shirt manufacturing as a normal permissible limit. The manager noticed a 1.5% defect rate in production and ignored it. However, he noticed that the cost of raw cotton (a Key Result Area) had suddenly increased by 10%, which would wipe out the company's profit margin entirely. He immediately reported the raw cotton price hike to the CEO. On the other hand, he noticed the cost of courier charges for sending documents had increased by 15%, but since it was a minor expense, he did not bother the CEO with it.
10. Identify and explain the **two specific principles of analyzing deviations** utilized by the manager of 'Alpha Garments'. Discuss any **two advantages** of utilizing these principles.
📄 PRACTICE PAPER - SET 4 (Level: Hard - Analytical Competency)
SECTION A (1 Mark Each)
[Case-Based] A company sets a standard that customer wait time in a queue should not exceed 5 minutes.
1. This standard is an example of:2. Which of the following situations definitely requires immediate 'corrective action'?
[Case-Based] "It is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary."
3. This defines:4. Assertion (A): Planning is prescriptive, whereas controlling is evaluative.
Reason (R): Planning prescribes the course of action to be followed, while controlling evaluates whether the actual performance matches the prescribed course.
Reason (R): Planning prescribes the course of action to be followed, while controlling evaluates whether the actual performance matches the prescribed course.
5. Assertion (A): A deviation in postal charges of 15% should be reported to the top management immediately before a 5% deviation in labor cost.
Reason (R): Labor cost is a Key Result Area (KRA), whereas postal charges are minor expenses; therefore, labor cost deviations are more critical.
Reason (R): Labor cost is a Key Result Area (KRA), whereas postal charges are minor expenses; therefore, labor cost deviations are more critical.
SECTION B (3 Marks Each)
6. Explain 'Management by Exception' (Control by Exception) with a suitable example.
[Case-Based] Mr. X set a standard to produce 500 units a day. He noticed actual production was 498 units. He spent 3 hours trying to find the cause of this shortfall and scolded the workers.
7. Which principle of controlling did Mr. X violate? Explain it briefly.
SECTION C (4 Marks Each)
8. What are the various methods of 'Measuring Actual Performance'? Why should performance be measured in the same units in which standards are set?
[Case-Based] 'CleanSweep Ltd.' observed a massive negative deviation in their sales target. Upon analysis, they found that the original sales target was set 50% higher than the market capacity, making it utterly impossible to achieve.
9. What corrective action should the management take in this specific scenario? Explain the step of 'Taking Corrective Action'.
SECTION D (6 Marks Each)
[Case-Based] 'InnovateTech' is launching a new software. The CEO stated, "We cannot just create a plan and assume it will succeed. We must constantly track it." He set a benchmark that the software code must be written with zero critical security bugs. Every evening, the testing team ran diagnostics to check the code written that day. On Thursday, they found a massive security flaw. They immediately compared it to the zero-bug standard and realized they had to halt development to find out why the bug occurred. They discovered the new junior coder was using an outdated coding language. The CEO immediately enrolled the junior coder in a mandatory advanced coding course.
10. By quoting lines from the paragraph, identify and explain the **five steps** of the controlling process followed by 'InnovateTech'.
📄 PRACTICE PAPER - SET 5 (Level: Advanced - Evaluation Competency)
SECTION A (1 Mark Each)
[Case-Based] If a manager focuses only on those deviations which go beyond the acceptable range, he is utilizing:
1.
2. Which of the following highlights that controlling ensures 'Coordination in Action'?
[Case-Based] "Controlling provides a basis for future planning."
3. This statement highlights that controlling is:4. Assertion (A): A good control system should be flexible.
Reason (R): The business environment is dynamic; hence, standards must be revised if the environmental conditions change drastically.
Reason (R): The business environment is dynamic; hence, standards must be revised if the environmental conditions change drastically.
5. Assertion (A): Planning and controlling are interdependent.
Reason (R): Planning makes controlling blind, and controlling makes planning meaningless.
Reason (R): Planning makes controlling blind, and controlling makes planning meaningless.
SECTION B (3 Marks Each)
6. Explain the term 'Key Result Areas' (KRAs) with the help of an example.
[Case-Based] 'Sunrise Travels' spent ₹5 Lakhs to install an advanced controlling software to track the exact minute their employees logged in. However, the company only makes a total profit of ₹3 Lakhs a year.
7. Which limitation of controlling is highlighted here? Explain it.
SECTION C (4 Marks Each)
8. Differentiate between 'Planning' and 'Controlling' on any four bases.
[Case-Based] The actual production of a factory was consistently lower than the standard. The manager analyzed the deviation and found that the raw material supplied was of inferior quality.
9. What are the possible causes of deviations in a business? What corrective action should the manager take in this specific case?
SECTION D (6 Marks Each)
[Case-Based] 'Puma Shoes' wanted to maintain its premium brand image. The management stated, "Quality is our KRA. We will not tolerate a defect rate above 1%." However, when the monthly report was generated, the defect rate was 4%. The management immediately sprang into action as this was beyond the permissible limit. They investigated and found two reasons: First, a specific sewing machine was malfunctioning. Second, the workers were exhausted due to continuous 12-hour shifts. The management immediately repaired the machine and hired a new batch of workers to introduce an 8-hour shift system.
10. By quoting lines, identify and explain the **two principles of analyzing deviations** used by the management. Also, identify the **last step** of the controlling process performed by them.
📄 PRACTICE PAPER - SET 6 (Level: Expert - Complex Case Studies)
SECTION A (1 Mark Each)
[Case-Based] The process of evaluating a completed task against predetermined targets to find out if there are any discrepancies is known as:
1.
2. Which of the following is an example of a 'Qualitative Standard'?
[Case-Based] "Controlling without planning is blind." This means:
3.
4. Assertion (A): Controlling is looking back.
Reason (R): Controlling involves analyzing past activities to find out whether they were performed as per the established plans.
Reason (R): Controlling involves analyzing past activities to find out whether they were performed as per the established plans.
5. Assertion (A): Taking corrective action is the final step in the controlling process.
Reason (R): If the deviations are within permissible limits, no corrective action is required.
Reason (R): If the deviations are within permissible limits, no corrective action is required.
SECTION B (3 Marks Each)
6. Why is it said that "Planning is looking ahead, but Controlling is looking back"?
[Case-Based] The management of 'QuickBite' wants to measure the performance of its chefs. They decide to taste the food randomly during the cooking process rather than just waiting for the final dish to be served to the customer.
7. Identify the step of the controlling process. Is measuring performance during the task a good practice? Give a reason.
SECTION C (4 Marks Each)
8. State any four points highlighting the 'Limitations of Controlling'.
[Case-Based] The sales of 'WinterWear Ltd.' dropped by 20% in December. The manager blamed the sales team and cut their bonuses. However, the real reason was an unusually warm winter and a sudden entry of a foreign competitor offering 50% discounts.
9. Identify the limitation of controlling highlighted here. Explain how analyzing deviations properly could have prevented the manager's mistake.
SECTION D (6 Marks Each)
[Case-Based] 'Alpha Builders' constructs luxury apartments. The CEO knows that controlling is crucial. He ensures that exactly 1,000 bricks are laid by a worker every week (Standard). Because the workers know exactly what is expected of them and that their performance will be measured, they do not waste time and work diligently. Furthermore, the CEO uses these performance reports to identify which workers are exceptionally fast and promotes them, keeping their morale high. Whenever a delay occurs, all departments instantly coordinate to fix it, ensuring the building is completed safely and methodically.
10. By quoting lines from the paragraph, identify and explain **four points of importance** of controlling for 'Alpha Builders'.
📄 PRACTICE PAPER - SET 7 (Level: Expert - Integrated Concepts)
SECTION A (1 Mark Each)
[Case-Based] The cost of packaging materials increased by 15%, but the cost of raw materials (a KRA) increased by 2%. According to Critical Point Control, which deviation requires immediate management attention?
1.
2. Which of the following actions is taken when the deviation is caused by an unrealistic or unattainable standard?
3. Assertion (A): Controlling ensures order and discipline.
Reason (R): By keeping a close check on the activities of subordinates, controlling minimizes dishonest behavior and reduces corruption.
Reason (R): By keeping a close check on the activities of subordinates, controlling minimizes dishonest behavior and reduces corruption.
4. Assertion (A): Controlling is only required in business organizations.
Reason (R): Educational institutions, hospitals, and clubs do not need to compare their actual performance with planned targets.
Reason (R): Educational institutions, hospitals, and clubs do not need to compare their actual performance with planned targets.
5. The step of 'Comparing Actual Performance with Standards' reveals:
SECTION B (3 Marks Each)
6. Explain 'Management by Exception' and state two of its major advantages.
[Case-Based] 'SuperFast Couriers' set a standard to deliver parcels within 24 hours. The actual performance showed deliveries were taking 48 hours. The manager found the delivery trucks were stuck in unexpected city riots.
7. Can the manager take corrective action against the employees in this case? Identify the limitation of controlling highlighted.
SECTION C (4 Marks Each)
8. "Planning and Controlling are both forward-looking." Justify this statement.
[Case-Based] A manager set a target of 1,000 units. Actual production was 990 units. The manager panicked and halted production to investigate the shortfall of 10 units.
9. Identify the principle of controlling ignored by the manager. Explain why ignoring this principle leads to a waste of managerial time.
SECTION D (6 Marks Each)
[Case-Based] 'Elite Furniture' had a great reputation. The CEO noticed profits were slipping. He called for a performance report and compared the actual profits of ₹50 Lakhs with the planned target of ₹80 Lakhs. Horrified by the massive ₹30 Lakh deviation, he dug deeper. He realized that this was a critical issue because profitability is the lifeline of the business. However, he also noticed that office stationery costs had gone up by ₹5,000. He completely ignored the stationery cost and focused solely on why the profit dropped. He found that the main cause was outdated cutting machines that were ruining expensive teak wood. He instantly sanctioned funds to buy laser-cutting machines.
10. By quoting lines from the paragraph, identify and explain the **three steps of the controlling process** executed by the CEO. Also, identify the **specific principle of analyzing deviations** he used to ignore the stationery cost.
📄 PRACTICE PAPER - SET 8 (Level: Advanced Board Mock 1)
SECTION A (1 Mark Each)
1. Which of the following is a pre-requisite for controlling?
[Case-Based] If actual performance is exactly equal to the planned performance, what should the manager do in the 'Taking Corrective Action' step?
2.
3. Assertion (A): Controlling improves employee motivation.
Reason (R): A good control system clearly communicates to employees what is expected of them and the standards against which their performance will be appraised.
Reason (R): A good control system clearly communicates to employees what is expected of them and the standards against which their performance will be appraised.
4. Assertion (A): Critical Point Control implies that a manager should only control the minor activities of the firm.
Reason (R): Minor activities are easier to control and guarantee the success of the organization.
Reason (R): Minor activities are easier to control and guarantee the success of the organization.
5. Measurement of performance can be done through:
SECTION B (3 Marks Each)
6. State the relationship between 'Planning' and 'Controlling' in three points.
[Case-Based] 'Bright Lights Ltd.' noticed that their LED bulbs were failing quality checks. The deviation was traced back to the raw materials supplied by a new vendor.
7. What corrective action should the management take? State one other possible cause for such a deviation.
SECTION C (4 Marks Each)
8. Explain the step 'Setting Performance Standards'. Why is it advised to set standards in quantitative terms?
9. Differentiate between 'Management by Exception' and 'Critical Point Control' with an example.
SECTION D (6 Marks Each)
[Case-Based] 'MegaCements' had an outdated management style. The CEO never checked the production reports until the end of the year, leading to massive undiscovered losses. A new manager, Mr. Raj, took over. He established a system where production was measured weekly. This allowed him to spot that machine #4 was consuming twice the electricity it should. Because the workers knew their weekly output was being measured, they stopped taking unauthorized breaks, bringing immense discipline to the floor. Furthermore, Mr. Raj used the end-of-year deviation data to accurately plan the raw material budget for the next year, ensuring resources were utilized optimally.
10. By quoting lines from the text, identify and explain **four points of importance** of controlling highlighted by Mr. Raj's actions.
📄 PRACTICE PAPER - SET 9 (Level: Advanced Board Mock 2)
SECTION A (1 Mark Each)
[Case-Based] An organization sets a permissible limit of 2% for defective products. Actual defects are at 1.5%. The manager ignores it.
1. This highlights the application of:2. Which function acts as a feedback mechanism for planning?
3. Assertion (A): It is easy to set quantitative standards for human behavior, like employee morale.
Reason (R): Employee morale can be easily measured using a weighing scale or measuring tape.
Reason (R): Employee morale can be easily measured using a weighing scale or measuring tape.
4. Assertion (A): Taking corrective action means changing the past.
Reason (R): Corrective action ensures that the deviations do not occur again in the future by fixing the root cause.
Reason (R): Corrective action ensures that the deviations do not occur again in the future by fixing the root cause.
5. Identifying the exact cause of the difference between actual and planned performance is called:
SECTION B (3 Marks Each)
6. "Controlling makes efficient use of resources." Explain this statement.
[Case-Based] A manager sets a standard of manufacturing 10,000 units in a month during the rainy season. However, heavy floods destroy the raw material supply chain.
7. Can the manager control this deviation? Identify and explain the limitation of controlling highlighted here.
SECTION C (4 Marks Each)
8. What is the meaning of 'Taking Corrective Action'? Give two examples of possible causes of deviation and their corresponding corrective actions.
9. "Planning is meaningless without controlling." Justify this statement with three valid arguments.
SECTION D (6 Marks Each)
[Case-Based] 'Alpha Tech' manufactures smartphones. The management set a clear benchmark: "Battery failure rate should not exceed 0.5%." After launching the phone, the Quality Control team randomly checked 1,000 units from the assembly line. They found that the battery failure rate was 3%, which was significantly beyond the permissible limit. They investigated and found that the soldering machines were misaligned. The management immediately recalibrated the machines. However, they also noticed that the packaging color was slightly lighter than planned, but since it didn't affect the product's safety or sales, they ignored it.
10. By quoting lines from the paragraph, identify and explain the **four steps** of the controlling process followed by 'Alpha Tech'. Also, identify the **principle of analyzing deviations** used to ignore the packaging color.
📄 PRACTICE PAPER - SET 10 (Level: Ultimate Board Challenger)
SECTION A (1 Mark Each)
1. Which of the following is a true statement?
[Case-Based] If an organization focuses heavily on controlling the quality of raw materials because it directly dictates the final product quality, it is practicing:
2.
3. Assertion (A): Controlling ensures that organizational resources are not wasted.
Reason (R): Each activity is performed according to predetermined standards, preventing trial-and-error wastage.
Reason (R): Each activity is performed according to predetermined standards, preventing trial-and-error wastage.
4. Assertion (A): Small enterprises do not need a controlling function.
Reason (R): Controlling is a pervasive function required by all organizations, large or small, business or non-business.
Reason (R): Controlling is a pervasive function required by all organizations, large or small, business or non-business.
5. The final step that completes one full cycle of the management process and links back to planning is:
SECTION B (3 Marks Each)
6. Explain any three limitations of the Controlling function.
[Case-Based] 'Star Industries' established a standard to produce 1,000 chairs using 500 logs of wood. They produced 1,000 chairs but used 600 logs of wood.
7. Is the production efficient or effective? Explain the deviation and suggest a corrective action.
SECTION C (4 Marks Each)
8. Explain 'Management by Exception'. State any three of its benefits to the organization.
9. "Controlling facilitates coordination in action." Justify this statement with a brief example.
SECTION D (6 Marks Each)
[Case-Based] 'Global Logistix' was suffering from terrible delivery delays. The CEO, Mr. Arjun, decided to overhaul the system. First, he drafted a detailed blueprint (Plan) stating that "All metro deliveries must happen within 12 hours." To ensure this plan wasn't just a piece of paper, he integrated GPS trackers in all vans. When a delivery took 14 hours, he received an automatic alert. Because his time was precious, he programmed the software to ignore any delays under 1 hour, alerting him only when delays exceeded 2 hours. Upon receiving the 14-hour delay alert, he investigated and found that the van's tires were severely worn out, reducing speed. He immediately replaced all tires and fired the maintenance supervisor. Because he took this strict action, the next month's planning was based on realistic data, and all drivers maintained strict discipline on the roads.
10. By quoting lines from the text, identify and explain: (a) The relationship between **Planning and Controlling**.
(b) The specific **Principle of analyzing deviations** used by the CEO.
(c) **Two points of importance** of controlling highlighted in the case.
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