Fernbank Manufacturing Limited has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process?

Question

Quizplus · Accepted Answer

The process described is an example of controlling, which involves monitoring performance and taking corrective action if necessary to ensure that goals are achieved. Specifically, the management of Fernbank Manufacturing Limited is taking action to reduce overhead costs that have exceeded budgeted amounts, which is a form of corrective action to bring expenses back in line with planned levels.

Fernbank Manufacturing Limited Has Set Various Goals, and Management Is