Your financial manager reports to you, the CEO, that your company's actual monthly financial results closely match, but not exactly match, the monthly budget. This indicates that ________
A) the company is fulfilling its plans
B) extreme corrective action is needed
C) the company needs to borrow money quickly
D) a planned sale of stock is needed
E) the company should stop doing these monthly comparisons
A
Explanation: A) If the actual numbers generated by the company closely match the budget, this shows the company is fulfilling its plans. On the other hand, if the actual numbers differ greatly from those projected by the budget, this indicates that corrective actions must be taken.
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