Question

The managers of Dakota Clothing regularly compare their actual profits with the firm's projected profits. When deviations occur, the managers use the feedback to take corrective action when necessary. The management of Dakota Clothing is exercising financial:
a) planning.
b) control.
c) derivatives.
d) budgeting.

Answer 1

Answer: control

 

Explanation: In simple words, controlling refers to the function of management under which the managers perform certain activities and makes decisions to achieve desired objectives of organisation from the subordinate.

In the given case, Dakota is comparing their profits from the projected profits and also taking corrective actions in case of discrepancies.

Hence from the above we can conclude that the correct option is B .