Question

whirlwind firm was a renowned name for manufacturing quality washing machines since 1965 when the profit of the last years declined

Answer 1

The step used by Mr. Ahmed is Controlling,as he is comparing the performance and taking corrective measures for deviations.

Answer 2

The step taken by Mr Ahmed is called the measurement of actual performance.

• The relevant management function is controlling.
• It involves measuring a business' performance to compare it with the standards so that the rectification measures could be taken.
• Since Whirlwind Enterprise's profits were declining, the accounting ratios were calculated to identify the problem.
• This will help the enterprise in comparing their ratios with the standard, profitable ratios and then corrective steps will be implemented.

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