The managers of Dakoti Clothing regularly compare their actual profits with the firm's projected profits.When deviations occur,the managers use the feedback to take corrective action when necessary.The management of Dakoti Clothing is exercising financial:
A)control.
B)budgeting.
C)derivatives.
D)planning.

Question

Quizplus · Accepted Answer

The management of Dakoti Clothing is comparing their actual profits with their projected profits and taking corrective action when necessary. This process of comparing actual results to planned results and taking corrective action is an example of financial control. Budgeting (B) involves setting goals and targets for the future, while derivatives (C) involve financial instruments used to manage risk. Planning (D) involves making decisions about the future direction of the organization.

The Managers of Dakoti Clothing Regularly Compare Their Actual Profits