Which of the Following Steps of the Control Process Involves

question 87

Multiple Choice

Which of the following steps of the control process involves goal setting?

• A) Measuring actual performance
• B) Comparing actual performance against chosen standards
• C) Evaluating the results of comparison
• D) Establishing the standards of performance
• E) Initiating corrective action

Determine the number of units required to break even or achieve a target profit, incorporating sales mix in calculations.

Analyze the effects of changes in fixed and variable costs on the break-even point and overall financial performance.

Comprehend the concept of margin of safety, both in dollar terms and as a percentage of sales, and its importance in measuring financial risk.

Apply cost-volume-profit (CVP) analysis principles to make informed financial and operational decisions.

---

Definitions:

Supervised

Being under the oversight or direction of someone more experienced or in a position of authority.

Hierarchical

Organized in a system of levels with higher ranks or classes having authority over lower ones.

Organic Structures

Flexible and adaptive organizational forms that emphasize decentralized decision-making and a high degree of informal communication.

Mechanistic

A highly structured and formal organizational design that emphasizes hierarchy, fixed duties, and centralized decision-making.