# Controlling Notes, Class 12 Business Studies | SwaVid Controlling, NCERT Class 12 Business Studies: notes with key ideas, definitions, common mistakes and 3 quick checks with worked answers. Canonical: https://www.swavid.com/cbse/class-12/business-studies/chapter/controlling Source: https://www.swavid.com/cbse/class-12/business-studies/chapter/controlling # Controlling ## Key definitions ## Key ideas ## Common mistakes ## Quick checks ## Keep going ## Questions parents ask ## Class 12 Business Studies on SwaVid ### Concept of controlling ### Importance of controlling ### Limitations of controlling ### Relationship between planning and controlling ### Controlling process ### Analysing deviations ### Next chapter ### Related chapter ### Related chapter ### All chapters SwaVid › CBSE › Class 12 › Business Studies › Controlling Notes written by SwaVid from the NCERT textbook. Class 12 Business Studies, Chapter 8. Key ideas, definitions and common mistakes. CBSE does not print marks for a single chapter. Short answer. Controlling is the management function of monitoring organisational performance towards the attainment of predetermined goals. It involves setting standards, measuring actual performance, comparing results, and taking corrective actions to ensure plans are implemented effectively. Source: NCERT Business Studies Part I (Reprint 2026-27) , Chapter 8, Controlling Controlling involves comparison of actual performance with planned performance. If there are deviations, it identifies their causes and initiates corrective actions to prevent their recurrence. Controlling helps in accomplishing organisational goals, judging accuracy of standards, and making efficient use of resources. It also improves employee motivation, ensures order and discipline, and facilitates coordination in action. An organisation faces difficulty in setting quantitative standards for qualitative aspects like employee morale. It also faces little control on external factors, resistance from employees, and high costs in maintaining a control system. Planning and controlling are interdependent and interlinked. Planning provides the standards against which controlling measures performance, while controlling provides inputs for future planning. Both functions are forward-looking as well as backward-looking. The process consists of five distinct steps: setting performance standards, measurement of actual performance, comparison of actual performance with standards, analysing deviations, and taking corrective action. Deviations are analysed using Critical Point Control and Management by Exception. Critical Point Control focuses on key result areas, while Management by Exception states that attempting to control everything results in controlling nothing, so only significant deviations beyond a limit need managerial attention. Try each question first. Then tap it to see the answer. Standard output = 500 pairs Actual output = 480 pairs Deviation = Actual output - Standard output = 480 - 500 = -20 pairs -20 pairs Permissible defect limit = 2% of 10,000 = 200 screws Actual defective screws = 250 screws 250 exceeds the acceptable limit of 200 screws, representing an exceptional deviation Yes, it must be reported to top management Critical Point Control focuses on Key Result Areas (KRAs) critical to the organisation Raw material costs directly impact production and profitability far more than postal expenses Therefore, the focus on raw material costs is guided by Critical Point Control Critical Point Control Financial Management . Directing . Organising . The 11 chapters of Class 12 Business Studies . CBSE does not give marks to one chapter. It prints marks for units or parts, and the chapter list page shows them all. No. They are written by SwaVid from the NCERT textbook. The CBSE curriculum is the reference for what is assessed. Financial Management. SwaVid is an AI tutor for Indian students in Classes 6 to 12. It finds the earlier ideas a child missed, then teaches today’s chapter. Start free to see how it works. - Ch 8 NCERT book - 80 marks, theory paper - 3 quick checks - Treating controlling as only a backward-looking function . Remember that controlling is both backward-looking and forward-looking. It looks back to assess past performance, but it also looks forward by prescribing corrective actions to improve future outcomes. - Confusing Critical Point Control with Management by Exception . Use Critical Point Control when referring to identifying critical areas or KRAs where deviations occur. Use Management by Exception when referring to the permissible range or tolerance limits of deviations. - Assuming that controlling ends with comparing actual results with standards . Controlling does not end at comparison or identifying deviations. The process is complete only after analysing deviations and taking corrective actions. ## Key Links - [CBSE](https://www.swavid.com/cbse) - [Class 12](https://www.swavid.com/cbse/class-12) - [Business Studies](https://www.swavid.com/cbse/class-12/business-studies/chapters) - [Start free →](https://www.swavid.com/signup) - [All 11 chapters](https://www.swavid.com/cbse/class-12/business-studies/chapters) - [NCERT Business Studies Part I (Reprint 2026-27)](https://ncert.nic.in/textbook.php) - [Open notes](https://www.swavid.com/cbse/class-12/business-studies/chapter/financial-management) - [Open notes](https://www.swavid.com/cbse/class-12/business-studies/chapter/directing) - [Open notes](https://www.swavid.com/cbse/class-12/business-studies/chapter/organising) - [Class 12 Business Studies](https://www.swavid.com/cbse/class-12/business-studies/chapters) - [Start free →](https://www.swavid.com/signup)