Final answer:
Managers must monitor a company's costs and performance on a monthly basis to evaluate its financial health, track against goals, and make timely adjustments as necessary for maintaining fiscal discipline.
Step-by-step explanation:
It is very important that managers monitor the costs of a company and how it is performing on a monthly basis. Monitoring financial performance is crucial for understanding the financial health of a business and making informed decisions. Managers typically review various financial statements such as balance sheets, income statements, and cash flow statements to get a clear picture of the company's financial performance.
By doing this on a monthly basis, managers can track the company's performance against its financial goals and budgets, identify any issues early on, and make necessary adjustments. This regular review helps in maintaining fiscal discipline and ensuring the company's operations are aligned with its strategic objectives. It's also an important part of the company's overall financial management.