Controlling · Class 12 · CBSE · Commerce Business Studies
Explain the relationship between planning and controlling in an organisation.
Practice question from Controlling (Class 12 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
medium · Subjective · Q-5DEF17
Explain the relationship between planning and controlling in an organisation.
Answer: Planning establishes the objectives, standards and methods of achieving desired results, while controlling checks whether actual performance conforms to those plans. Planning provides the basis for controlling, because actual performance can be compared only with predetermined standards. Controlling also helps planning by providing feedback about deviations and the effectiveness of existing plans.
Solution
Planning and controlling are interdependent functions. Planning sets the standards against which performance is measured, while controlling provides feedback that may lead to revised plans or improved methods.
More from Controlling
- Which of the following best describes the controlling function of management?
- A manager fixes a target of producing 10,000 units in a month. At the end of the month, actual production is found to be 9,200 units. What…
- A company permits a maximum wastage of 2% in its production process. During one month, wastage rises to 7%. The production manager investig…
- A sales manager reviews every sales report but takes corrective action only when the deviation from the sales target exceeds 10%. Which pri…
Practise more Business Studies
Sign up free for adaptive practice on this chapter, with instant feedback and hints on every question.
Start practising freeFree to start · No credit card needed