Controlling · Class 12 · CBSE · Commerce Business Studies
A company permits a maximum wastage of 2% in its production process. During one month, wastage rises to 7%. The production manager investigates the c…
Practice question from Controlling (Class 12 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
hard · MCQ · Q-4E35DD
A company permits a maximum wastage of 2% in its production process. During one month, wastage rises to 7%. The production manager investigates the causes and changes the machine-maintenance schedule. Which concept of controlling is illustrated most clearly?
- A.Management by exception, followed by corrective actionCorrect answer
- B.Delegation without accountability
- C.Planning without standards
- D.Coordination through informal communication only
Solution
The manager focuses attention on a significant deviation from the permitted standard, which reflects management by exception. Changing the maintenance schedule is corrective action intended to bring future performance back to the desired level.
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