Download App

Controlling — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesControlling4 Marks
Question
Write a short note on budgetary control as a technique of managerial control.
✓

Answer

Budgetary control is a technique of managerial control in which all operations are planned and this will help us in knowing how much we have to spend in order to achieve the future result. It compared the actual result with budgetary standards. This comparison reveals the necessary actions to be taken so that the organisational objectives are accomplished. Budgeting offers the following advantages
  1. Budgeting focuses on specific and time bound targets.
  2. Budgeting is a source of motivation to the employees they set the standards against which their performance will be appraised and thus, enables them to perform better.
  3. Budgeting helps in optimum utilisation of resources by allocating them according to the requirements of different departments.
  4. It helps the management in setting standards.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "4 Marks Question" from Controlling→Controlling — all question types→Business Studies STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

“Controlling is a pervasive function”. Explain.
→
Is management a 'Science'? Give any three reasons in support of your answer.
→
Define HRM. Explain the various stages of the evolution of HRM.
→
Explain any four points of importance of the controlling function of management.
→
Distinguish between 'Formal' and 'Informal' organisation.
→
Explain the following rights of a consumer as per the provisions of Consumer Protection Act, 2019:
i. Right to safety
ii. Right to be heard
→
Distinguish between fixed capital and working capital.
→
Distinguish between the term “training and 'development.
→
State any five semantic barriers to communication in an organization.
→
Aditya Khosla, the Managing Director of ‘D.L.W. Ltd.’ and Rajesh Puri, the Finance Manager were discussing about avenues of investing the idle funds of the company. Aditya Khosla was of the opinion that money should be invested in the capital market whereas Rajesh Puri, being more conservative, felt that it would be better if the investment was made in the money market. Since the economy was buoyant, the Managing Director convinced Rajesh that they should take advantage of it and invest in the capital market to get good returns. Ultimately it was decided to invest the idle funds in the capital market.
i. What kind of instruments should the company buy?
ii. Why is the capital market expected to give a better return in a buoyant economy? State the reason.
iii. Why and how safe are the securities in this market as compared to the money market?
→