Question

Which of the following is not a controlling technique?

• A. Break-even analysis
• B. Cash flow statement
• C. Budget
• D. Managerial audit

Hint:

A cash flow statement is used to track the flow of cash in and out of a business, while controlling techniques help managers monitor and adjust performance.

Answer 1

The Correct Option is B

Step 1: Understanding controlling techniques.
Controlling techniques are the tools and methods used by managers to ensure that an organization is on track to achieve its goals. These techniques include break-even analysis, budgets, and managerial audits. However, the cash flow statement is a financial statement, not a controlling technique.
Step 2: Analyzing the options.
(A) Break-even analysis: This is a controlling technique used to determine the point at which revenues equal costs.
(B) Cash flow statement: Correct. The cash flow statement is a financial statement, not a controlling technique.
(C) Budget: This is a controlling technique that helps in planning and controlling financial resources.
(D) Managerial audit: This is a controlling technique used to assess the effectiveness of management decisions.
Step 3: Conclusion.
The correct answer is (B) Cash flow statement, as it is a financial statement, not a controlling technique.