Controls

The budget sets standards that should be achieved. A comparison of these standards with the actual results achieved and the taking of corrective action, are essential parts of the control process. This last section of the plan outlines the control procedures to be applied to monitor the plan’s progress.

The possibility of contingency plans should also be considered. A contingency plan outlines how the main plan will change if certain unexpected events occur, such as major competitor price changes. The purpose of contingency planning is to encourage managers to give prior thought to some difficulties that might be ahead.