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While scrutinizing the production records, it is found that in a particular batch the rejection rate was 15% against the set standard of 12%. - Commerce

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Question

While scrutinizing the production records, it is found that in a particular batch the rejection rate was 15% against the set standard of 12%. The management found out that this was due to negligence of quality control staff. This action is part of which step in the controlling process:

Options

  • Measurement of actual performance.

  • Comparing actual performance with standards.

  • Analysing deviations.

  • Taking corrective action.

MCQ
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Solution

Analysing deviations.

Explanation:

After noticing a 3% higher rejection rate, management identifies the cause (negligence by staff). Finding the reason for the gap between actual and standard performance is called analysing deviations—a key step in the controlling process.

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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 18. | Page 377
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