Question

From the following, which are the non-budgetary methods of evaluation?
A. Summary reports
B. Profit and loss account
C. Personal observations
D. Checklists
Choose the correct answer from the options given below:

• A. A, B and D only.
• B. A, B and C only.
• C. A, C and D only.
• D. B, C and D only.

Hint:

To easily solve this question, identify the financial/monetary method: "Profit and Loss account" (B) is clearly financial.
Excluding (B) from the choices leaves only option (C) as the correct answer.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
Evaluation is the process of comparing actual outcomes against established standards to measure success.
In institutional and household management, evaluation methods are broadly divided into budgetary (financial, quantitative) and non-budgetary (qualitative, operational) methods.

Step 2: Detailed Explanation:
Let us analyze the methods listed in the options:
- A. Summary reports: These are qualitative or operational narratives summarizing progress, activities, and achievements without focusing solely on financial balance sheets.
This is a non-budgetary method.
- B. Profit and loss account: This is a financial statement that summarizes revenues, costs, and expenses incurred during a specific period.
It is a quantitative, financial, and budgetary tool.
- C. Personal observations: An evaluator visually inspects work processes, employee performance, or home cleanliness directly.
This is a qualitative, non-budgetary method.
- D. Checklists: Standardized lists of tasks or standards to verify if specific criteria are met.
This is an operational, non-budgetary tool.
Therefore, A, C, and D are non-budgetary methods of evaluation.

Step 3: Final Answer:
The non-budgetary methods of evaluation are A, C and D only.