Wembley Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process?
A) Decision making.
B) Planning.
C) Coordinating.
D) Controlling.
E) Organizing.

Question

Quizplus · Accepted Answer

The process described is best associated with the controlling function of management, which involves monitoring performance, comparing it with goals, and taking corrective action as needed. Reducing overhead costs to meet budgeted amounts is a form of corrective action to control and align actual performance with planned goals.

Wembley Company Has Set Various Goals, and Management Is Now