(Drury) The Budgeting Process - The strategic planning, budgeting and control process - Monitor actual outcomes and respond to deviations from planned outcomes (stage 4 and 5)

4 important questions on (Drury) The Budgeting Process - The strategic planning, budgeting and control process - Monitor actual outcomes and respond to deviations from planned outcomes (stage 4 and 5)

What is the control process?

The process of comparing actual and planned outcomes, and responding to any deviations from the plan.

What is effective controlling?

It requires that corrective action is taken so that actual outcomes conform to planned outcomes.
Alternatively, the plans may require modification if the comparisons indicate that the plans are no longer attainable.

What are feedback loops?

Parts of a control system that allow for review and corrective action to ensure that actual outcomes conform with planned outcomes.
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What do the feedback loops indicate?

That the plans should be regularly reviewed, and if they are no longer attainable then alternative courses of action must be considered for achieving the organization's objectives.

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