Class 12 Class 12 Business Studies Notes

Class 12 Business Studies Notes Controlling

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Controlling is part of Class 12 Business Studies Notes for Quick Revision. Here we have given NCERT Class 12 Business Studies Notes – Controlling.


1. Controlling

It can be defined as a comparison of actual performance with the planned performance.
According to Ricky W Griffin. “Controlling function leads to goal achievement. an organisation without effective control is not likely to reach its goals.”

2. Importance

(i) Helps in achieving organisational goods
(ii) Judging accuracy of standards
(iii) Making efficient use of resources
(iv) Improving employee motivation
(v) Ensures order and discipline
(vi) Facilitate co-ordination in action
(vii) It helps in minimising the errors

3. Limitations

(i) Difficulty in setting quantitative standards
(ii) No control over external factors
(iii) Resistance from employees
(iv) Costly affair

4. Relationship Between Planning and Controlling

(i) They are interdependent and
(ii) They both are the forward-looking function.

5. Process

(i) Setting up of standards
(ii) Measuring performance
(iii) Compare performance against the standard
(iv) Analysing deviation
(a) Critical point control
(b) Management by exception
(v) Taking Corrective measure

6. Deviation

It refers to the difference between actual performance and standard performance.


7. Techniques of Managerial Control

There are two technique of managerial control
(i) Traditional techniques
(ii) Modern techniques

8. Traditional Techniques

(i) Personal observation
(ii) Statistical reports
(iii) Break-even analysis
(iv) Budgetary control

9. Modern Techniques

(i) Return on investment
(ii) Ratio Analysis
(a) Liquidity ratio
(b) Solvency ratio
(c) Profitability ratio
(d) Turnover ratio
(iii) Responsibility Accounting
(a) Cost or expenses centre
(b) Revenue centre
(c) Profit centre
(d) Investment centre
(iv) Management Audit
(v) Network Techniques (PERT and CPM)

We hope the given CBSE Class 12 Business Studies Notes Controlling will help you. If you have any query regarding NCERT Class 12 Business Studies Notes Controlling, drop a comment below and we will get back to you at the earliest.

Class 12 Business Studies Notes

Nature and Significance of Management

Principles of Management

Business Environment






Financial Management

Financial Market


Consumer Protection

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