Effective Controlling Requires the Existence of Plans

question 117

Multiple Choice

Effective controlling requires the existence of plans,

• A) since planning provides the necessary performance standards or objectives.
• B) since understanding the mission of the organization requires strategic plan.
• C) since control techniques are budget and performance audits.
• D) since managers must show compliance with company policies.

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Definitions:

Remaining to Spend

The amount of budget or funds left available to use or allocate.

Cost Of Goods

The direct expenses associated with producing goods, including materials and labor costs, but excluding indirect expenses like distribution and sales force costs.

Operating Expenses

Costs associated with the day-to-day operations of a business, including rent, utilities, and payroll.

Sales

the exchange of goods or services for money, representing a key activity for businesses to generate revenue.