Question : Case Study 19:
EFG Manufacturing is a company that produces consumer goods. The management team at EFG wants to implement a robust control system to improve productivity and optimize resource utilization.
Question:
Which step in the controlling process involves identifying the causes of deviations at EFG Manufacturing?
Option 1: Setting performance standards.
Option 2: Measuring actual performance.
Option 3: Comparing actual performance with standards.
Option 4: Taking corrective action.
Correct Answer: Taking corrective action.
Solution : The correct answer is (d) Taking corrective action.
In the controlling process, taking corrective action involves identifying the causes of deviations from established performance standards and taking steps to address and rectify those deviations. It is the step where the management team at EFG Manufacturing would investigate the reasons behind any performance shortfalls and implement solutions to improve productivity and resource utilization.
