Coda Inc.is an apparel manufacturer.The management at Coda prefers moderate control over the operations of the different departments such as R&D,design,marketing,and sales.It allocates a budget to each function at the beginning of each quarter.This is an example of implementing control through
A) output controls.
B) input controls.
C) multidivisional strategy.
D) centralization.

Question

Quizplus · Accepted Answer

This is an example of implementing control through input controls. Input controls seek to define and direct employee behavior through a set of explicit, codified rules and standard operating procedures. Firms use input controls when the goal is to define the ways and means to reach a strategic goal and to ensure a predictable outcome. The use of budgets is a key to input controls.

Coda IncIs an Apparel Manufacturer