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CSEET · Business Laws and Management · Functions of Management

Sundaram Textiles Ltd. has fixed its aim of becoming the market leader in Tamil Nadu within five years. The production head now lists the exact steps, in order, for the dyeing section to cut wastage by 8% in the coming year, and the finance head prepares a monetary statement of expected spending for that section. Which two types of plan are being prepared respectively?

The plans are a procedure and a budget. The ordered steps for the dyeing section form a procedure because they are a chronological series of actions, while the statement of expected spending for the section is a budget, a plan expressed in monetary terms.

  1. AStrategy and policy
  2. BObjective and rule
  3. CProcedure and budgetCorrect
  4. DProgramme and method

Explanation

Listing exact steps in chronological order is a procedure. A monetary statement of expected income or expenditure is a budget. The market-leader aim is an objective, not part of the two plans asked. Programme and method do not fit, since a method deals with a single step only.

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