What is the chief purpose of the process known as financial control?

QUESTION

What is the chief purpose of the process known as financial control?

A) to tie together the different types of budgets to present the company’s overall plan
B) to identify deviations from the financial plan so that corrective action can be taken
C) to identify a firm’s sales and production goals and specify the costs required to meet them
D) to estimate a firm’s expenditures for purchasing long-term assets
E) to forecast cash inflows and outflows for each month and for the entire year

ANSWER

Answer: B
Explanation: B) The chief purpose of the monitoring process known as financial control is to identify deviations from the financial plan so that corrective action can be taken.