Situational Questions on Controlling

During a quarterly review, a manager notices that the actual sales figures are significantly lower than the projected figures. What should be the manager's next step in the control process?

• Establish new standards

• Measure performance again

• Compare measured performance to standards

• Take corrective actions

A company implements a policy requiring dual signatures on checks to prevent unauthorized spending. What type of control is this?

• Preventive control

• Detective control

• Corrective control

• Feedback control

A finance manager focuses on controlling cash flow and maintaining liquidity. Which type of control is this an example of?

• Feed forward control

• Concurrent control

• Feedback control

• Budgetary control

A company aims to contribute to society by reducing its carbon footprint. Which type of standard does this represent?

• Profitability standard

• Market position standard

• Social responsibility standard

• Productivity standard

A discrepancy is found during an audit, and the company takes steps to adjust entries and reinforce accounting procedures. What type of control action is this?

• Preventive action

• Detective action

• Corrective action

• Feedback action

A marketing team sets a monthly limit on digital ad spending and regularly checks to ensure the campaign stays within budget. What type of control is this?

• Performance metric

• Budget control

• Quality control

• Customer feedback loop

A company uses customer surveys after a product launch to gather feedback and make necessary adjustments. Which control method does this illustrate?

• Performance metrics

• Budget control

• Customer feedback loop

• Quality control

A manager compares actual expenses to budgeted expenses to identify variances. What requirement for effective control does this fulfill?

• Control should be flexible

• Control should be objective

• Control should be economical

• Control should lead to corrective actions

A company prepares a budget that remains unchanged regardless of the level of activity. What type of budget is this?

• Flexible budget

• Fixed budget

• Master budget

• Functional budget

A company conducts pre-release reviews of ad content to ensure it aligns with brand standards. What type of control is this?

• Performance metric

• Budget control

• Quality control

• Customer feedback loop