Before starting a new financial year, the management of a manufacturing firm forecasts demand, estimates resource requirements, sets sales targets, and prepares detailed action programmes. After the year begins, actual performance is compared with these targets. Which set of activities are being performed here?

Solution

Initially Planning: Forecasting demand, estimating resources, setting sales targets, and preparing action programs are all part of Planning. This stage involves establishing objectives and determining the best course of action to achieve them before the financial year begins.   Then Controlling: Comparing actual performance with the preset targets after the year starts is the core of Controlling. This process ensures that activities are performed as planned and allows for corrective actions if deviations occur.