Question

Explain 'Critical point control' as discussed in the controlling process. 

Answer 1

This principle states that the Key Result Areas (KRAs), which are essential to the organization's success, should be the primary focus of the control system. This is due to the fact that monitoring every activity of the business is neither cost-effective nor simple. Therefore, as the entire organization suffers, quick action should be made if something goes wrong at the crucial moments or important sectors. For example. Since a 5% increase in labor costs can affect profitability, it is more important than a 20% increase in postal fees.