Which of the following descriptions best matches the CONTROLLING responsibility of management?

Question

BlackTom AI · Accepted Answer

Controlling in management is the process of setting performance standards, measuring actual performance, comparing actuals with standards, and taking corrective action to ensure organizational objectives are met. Key knowledge points: (1) Establish standards (policies, limits, targets); (2) Monitor or measure actual behavior or results; (3) Compare actuals to standards to identify deviations; (4) Implement corrective measures or controls to prevent or fix deviations.

Step-by-step reasoning applied to each option:
1. Establish the standard: e.g., limit discounts to a maximum percentage. Measure: system records discounts given. Compare: check if discounts exceed the allowed limit. Corrective action: system prevents entries above limit or notifies management. This maps exactly to the four controlling steps.
2. Establish the standard: a cash flow target or minimum cash balance might be set. Measure: review the bank statement. Compare: determine if current cash meets the target. Corrective action: arrange financing or delay payments. While this involves monitoring and financial decision-making, the wording (“review the bank statement to determine whether they have sufficient cash to pay liabilities”) describes an information-gathering or cash-management activity rather than an ongoing control mechanism enforcing standards.
3. Considering where to open the next retail store is a planning/strategic decision: it sets future direction, evaluates markets, and allocates resources—these are planning activities, not controlling.

Why the correct answer is correct:
“The business systems make sure that staff can only give discounts up to 15%” explicitly describes a control mechanism that sets a standard (15%), measures and limits behavior (systems enforcing the cap), and prevents deviation—this is classic controlling.

Why other options are incorrect:
- Option about opening a new store = planning, not controlling.
- Option about reviewing bank statements = financial monitoring/information-gathering; not the best match for the controlling function as described.

Conclusion: The correct description of the controlling responsibility of management is “The business systems make sure that staff can only give discounts up to 15%,” which matches the provided answer.

Which of the following descriptions best matches the CONTROLLING responsibility of management?单项选择题

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