In a multidivisional structure, which form of control is used to compare the relative performances of different divisions?
A) Output control
B) Bureaucratic control
C) Control through culture
D) Financial control
E) Adaptive control

Question

Quizplus · Accepted Answer

Financial control is the form of control used to compare the relative performances of different divisions in a multidivisional structure. This involves measuring the financial performance of each division against predetermined targets or benchmarks, such as budgeted revenue, expenses, and profits. This enables the management to identify which divisions are performing well and which ones need improvement, and to take appropriate corrective actions.

In a Multidivisional Structure, Which Form of Control Is Used