Which of the following statements is true of control? Control through rules, procedures, and budgets is generally not very costly. Controlling through the use of rules and budgets can lead to a loss of creativity in an organization. Standards of control do not depend on which constituency is being considered. Different forms of control cannot be used at the same time.
Control through rules and budgets can lead to rigidity and loss of creativity in an organization in a way that it limits change. When all available funds are allocated to specific operational budgets, it may be impossible to procure additional funds, when an opportunity arises elsewhere. Some organizations are therefore working in a way to back their budgeting systems.
