The Controlling Process

As Figure 17.2 illustrates, three main steps are in the controlling process:

  1. Measuring performance

  2. Comparing measured performance to standards

  3. Taking corrective action

Measuring Performance

Before managers can determine what must be done to make an organization more effective and efficient, they must measure current organizational performance.9 However, before they can take such a measurement, they must establish some unit of measure that gauges performance and observe the quantity of this unit as generated by the employee whose performance is being measured.10

  • Objectives

  • The controller (or comptroller) is responsible for all accounting activities within the organization.

  • Functions

    1. General accounting—Maintain the ...

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