The planning and control process within an entity means that:
A) plans and actual performance do not diverge.
B) plans are followed rigidly at all times.
C) business is only concerned with actual performance.
D) business can respond to divergences between plans and actual performance.

Question

Quizplus · Accepted Answer

The planning and control process within an entity should allow for flexibility and the ability to respond to divergences between plans and actual performance. Rigidly following plans at all times is not always feasible or effective in a dynamic business environment. Business should strive to minimize divergences between plans and actual performance, but it is important to be able to adjust plans as necessary to achieve desired outcomes.

The Planning and Control Process Within an Entity Means That