Question 271General Subjects - 1st Asst/Chief
70% to passIn setting up a managerial control system, the standard must be established, and a means of measuring performance against that standard must be established. What statement is true concerning the comparison between performance and the standard?
The correct answer is C) Any deviation must be determined and analyzed to determine what caused the deviation. Corrective action is taken as necessary. This is the correct answer because in a properly designed managerial control system, any deviation between the established standard and the actual performance must be identified, analyzed to determine the root cause, and then corrective action must be taken as needed to address the underlying issue. The goal is to continually improve performance and ensure the organization is meeting its objectives. The other options are incorrect because they either do not require any further action beyond simply documenting the deviation (A and B), or they only require analysis without taking corrective action (D). A comprehensive control system necessitates both analysis and the implementation of remedial measures when performance falls short of the standard.
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