Chuck Hewitt was relaxing after work with a colleague at a local watering hole.Well into his second martini,he began expressing his opinions about his company's budgeting practices.It seems that,as a result of "budget handcuffs" that require managers to explain material deviations from budgeted expenditures,his ability to creatively manage his department's activities have been curtailed.The level of control that the company is using in this case is a
A) boundary system.
B) belief system.
C) interactive control system.
D) diagnostic control system.

Question

Quizplus · Accepted Answer

Diagnostic control systems are used to monitor outcomes and evaluate performance against standards. In this situation, the company's budgeting practices are creating a level of control that is monitoring and evaluating managers' performance against budgeted expenditures.

Chuck Hewitt Was Relaxing After Work with a Colleague at a Local