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Business Studies

Analysing deviations

In this Class 12 Business Studies topic from the chapter Controlling, students learn how managers compare actual performance with planned standards and examine any deviations. The topic explains why differences arise, how to distinguish significant deviations from minor ones, and how managers investigate their causes. Students also understand how deviation analysis supports timely corrective action, improves efficiency, and helps ensure that organisational objectives are achieved.

Medium · Level 1 · 1 questions

Practice questions

01If sales are increasing but profit is decreasing, what should the entrepreneur check?

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Answer and explanation

Correct answer: A. The relationship between costs and profit margin

Sales measure the value or volume sold, while profit remains after relevant costs are deducted. Sales can rise while profit falls if material, wages, transport, promotion, discounts, or other costs increase faster than revenue. The entrepreneur should examine cost records and margins rather than infer profitability from sales alone.

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Analysing deviations

Practice questions

01If sales are increasing but profit is decreasing, what should the entrepreneur check?यदि बिक्री बढ़ रही है लेकिन लाभ घट रहा है तो उद्यमी को किस बात की जांच करनी चाहिए?

Analytics choices

01If sales are increasing but profit is decreasing, what should the entrepreneur check?