Question

Which of the following are traditional techniques of managerial control?

Options

• Personal Observation

• Statistical Reports

• Break-Even Analysis

• All of the above

Answer 1

All of the above

Explanation - 

Traditional Techniques: Traditional techniques are techniques that have been employed by managers for a long time. Traditional management control strategies are listed below.

1. Personal Observation: This strategy involves supervisors personally observing the work that is being done. It allows the management to acquire the necessary information and puts pressure on employees to perform well because they are constantly viewed by their boss.
2. Statistical Reports: Data in the form of averages, ratios, percentages, and other statistical analyses can be simply displayed in the form of graphs, charts, and tables. This type of display makes it simple to compare performance to industry norms.
3. Break-Even Analysis: This entails examining the relationship between expenses, volume, and profits. The quantity of sales at which there is neither profit nor loss is known as the break-even point.