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In Rao Private Limited, a production target of 35,00,000 units was set for one month. It was achieved much before time and the actual production was 38,00,000 units. - Commerce

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Question

In Rao Private Limited, a production target of 35,00,000 units was set for one month. It was achieved much before time and the actual production was 38,00,000 units. Does the manager need to take any action?

Options

  • Yes, as the employees are demanding reward from the company.

  • Yes, management should take actions frequently.

  • No, as plans have been implemented successfully.

  • Yes, as target need to be revised to make them challenging.

MCQ
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Solution

Yes, as target need to be revised to make them challenging.

Explanation:

Since the production target was not only achieved early but also exceeded, it suggests the target may have been too easy. The manager should revise the standard to make it more challenging and realistic for future planning and performance improvement.

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Chapter 12: Controlling - QUESTIONS [Page 377]

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C. B. Gupta Commerce Volume 2 [English] Class 12 ISC
Chapter 12 Controlling
QUESTIONS | Q 22. | Page 377
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