Discuss in brief old control techniques.
Answers
As money is spent, statements are updated to reflect how much was spent, how it was spent, and what it obtained.
Managers use these financial statements, such as an income statement or balance sheet, to monitor the progress of programs and plans. Financial statements provide management with information to monitor financial resources and activities.
Answer :
Traditional types of control Techniques in management :
• Budgetary Control
• Standard Costing
• Financial Ratio Analysis
• Internal Audit
• Break-Even Analysis
• Statistical Control
• Budgetary control :
Budgeting simply means showcasing plans and expected results using numerical information. As a corollary to this, budgetary control means controlling regular operations of an organization for executing budgets.
• Standard Costing :
Standard costing is similar to budgeting in the way that it relies on numerical figures. The difference between the two, however, is that standard costing relies on standard and regular/recurring costs.
• Financial ratio analysis :
Every business organization has to depict its financial performances using reports like balance sheets and profit & loss statements. Financial ratio analysis basically compares these financial reports to show the financial performance of a business in numerical terms.
• Internal audit :
Another popular traditional type of control technique is internal auditing. This process requires internal auditors to appraise themselves of the operations of an organization.
• Break - even analysis :
Break-even analysis shows the point at which a business neither earns profits nor incurs losses. This can be in the form of sale output, production volume, the price of products, etc.
• Statistical Control :
The use of statistical tools is a great way to understand an organization’s tasks effectively and efficiently. They help in showing averages, percentages, and ratios using comprehensible graphs and charts.