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CSEET · Business Laws and Management · Introduction to Management

Consider these statements about the controlling function. Statement I: Controlling compares actual performance with planned standards and corrects deviations. Statement II: Controlling can operate without any prior planning because standards are not needed. Which is correct?

Only Statement I is correct. Controlling compares actual results with planned standards and corrects deviations. Since the standards are derived from plans, controlling cannot work without planning, so the claim that no prior planning is needed is wrong.

  1. ABoth statements are correct
  2. BOnly Statement I is correctCorrect
  3. COnly Statement II is correct
  4. DNeither statement is correct

Explanation

Controlling measures actual performance against standards and takes corrective action, so Statement I is correct. Standards come from plans, so without planning there is nothing to compare against; Statement II is wrong, which is why planning and controlling are called inseparable.

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