Techniques of Control

Techniques of Control or Methods of Establishing Control

A number of techniques or tools are used for the purpose of managerial control. Some of the techniques are used for the control of the overall performance of the organisation, and some are used for controlling specific areas or aspects like costs, sales, etc.

1.    Budgetary control technique
2.    Non-budgetary control techniques

1.    Budgetary control technique

The technique of budgetary control refers to the use of budgets as the means for controlling the activities of a business.

2.    Non-budgetary control techniques

Non-budgetary control techniques refer to all techniques of control other than the technique of budgetary control. Non-budgetary control techniques include techniques such as:

1. Standard Costing
2. Break-even analysis
3. Inventory Control
4. Internal Audit
5. Statistical data analysis
6. Personal observation
7. Production planning and control
8. Financial statement analysis
9. Return on investment control
10. Management information system
11. Management audit
12. PERT & CPM
13. Human resources accounting
14. Responsibility accounting

It may be noted that this type of classification of control techniques (i.e., classification of control techniques into budgetary control technique and non-budgetary control techniques) is not quite common.