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Controlling — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesControlling3 Marks
Question
How does controlling help in decision making? Illustrate your answer with a suitable example.
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Answer

Control involves taking corrective action whenever needed. If the management is informed of the activities, then only they will be able to identify and solve problems before they become unmanageable. This will enable them to take decisions for future course of action also.
For example: If there are frequent production delays, then the manager should find out the reasons for it immediately. Then only he will be able to take relevant decisions and prompt remedial action.

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