When actual financial performance is worse than the budget you can take corrective action by :
A) Spending more on marketing and promotion
B) Reducing prices to attract more customers
C) Waiting to see what happens
D) a) and b)

Question

Quizplus · Accepted Answer

Waiting to see what happens is not corrective action. Corrective action involves understanding your business and responding to what is happening around you. It is possible to do more marketing to encourage more customers or it may be effective to win more customers by cutting prices. Either way you are being proactive.

When Actual Financial Performance Is Worse Than the Budget You