CBSE 2025, BS Set 1

Question

'Green Tech Solutions', a renewable energy company, set a target of reducing its production cost by 15% in the current financial year. After a few months, the management reviews the progress and finds that the cost reduction measures implemented have not been as effective as planned. By reviewing the progress 'Green Tech Solutions' has completed one of the steps of controlling process.

Identify the step of controlling process from the following:

Identify the step of controlling process from the following: A). Setting performance standards B). Comparing actual performance with standards C). Analysing deviations D). Taking corrective actions

Edvaya · Accepted Answer

The correct answer is Comparing actual performance with standards. **Comparing actual performance with standards** is correct.

The company set a target of 15% cost reduction (standard). After a few months, management *reviewed the progress* — i.e., compared what actually happened against the standard. This is the step of **Comparing actual performance with standards**.

- **Setting standards**: Already done (15% cost reduction target).
- **Analysing deviations**: Would come next — finding *why* the measures were not effective.
- **Taking corrective actions**: The final step, implemented after analysis.

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Business Studies > Principles And Functions Of Management > Controlling

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