Effective planning improves a company's control systems by
A) making assumptions explicit.
B) making it possible to compare target versus actual results and take corrective action on gaps to modify future activities.
C) developing "what if" scenarios.
D) ensuring adequate resources are available.

Question

Quizplus · Accepted Answer

Effective planning allows a company to set specific targets and goals, which can be compared to the actual results achieved. Any gaps between the two can be identified and corrective action taken to modify future activities. This improves the company's control systems by increasing their ability to track progress and make adjustments as needed. While the other choices can also improve control systems to some extent, B is the most comprehensive and applicable to all types of planning.

Effective Planning Improves a Company's Control Systems by