Question

Wembley Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process? Multiple Choice a. Organizing. b. Planning c. Coordinating. d. Controling e. Decision making.

Answer 1

The action Wembley Company is taking to reduce overhead costs aligns with the controlling function in management, aiming to realign the company's spending with its budgeted goals and contribute to efficiency.

Step-by-step explanation:

The process of taking appropriate action to ensure that a company achieves its goals, specifically by reducing outlays for overhead that have exceeded budgeted amounts, best describes the controlling function in management. Controlling involves measuring performance, comparing it against established standards, and taking corrective action if necessary. It is one of the key management functions, alongside planning, organizing, staffing, leading, and coordinating.

In the context of Wembley Company, the action to reduce overhead costs that exceed budgeted amounts is a control measure that ensures the company's financial resources are being used effectively and adjustments are made to align with financial goals. This supports company sustainability and efficiency, which can contribute to achieving optimal scale of production and benefiting from economies of scale.