In setting up a managerial control system, the standard must be established, and a means of measuring performance against that standard must be established. What statement is true concerning the comparison between performance and the standard?

Correct Answer: Option C — Any deviation must be determined and analyzed to determine what caused the deviation. Corrective action is taken as necessary.

Managerial control systems require a closed-loop process. Once performance is measured against a standard, any deviation must be analyzed to identify the root cause. Corrective action is then mandatory to bring the process back into alignment, ensuring that shipboard operations remain within safe and efficient parameters.