If actual expenses exceed the budget but the causes are not found, which part of the controlling process is incomplete?

Correct answer: Correction and cause analysis

The governing concept is the corrective stage of controlling. A control process normally establishes standards, measures actual performance, compares actual results with standards, analyses deviations and takes corrective action. If actual expenses are higher than the budget, a deviation exists; however, simply noticing the excess does not complete control. The manager must investigate whether the cause was price increases, waste, inefficient use of materials, excessive overtime, weak supervision or an unrealistic budget, and then decide suitable corrective action. Therefore option A is correct because it includes both cause analysis and correction. Recruitment, division of work and motivation may affect operations, but none is the missing step in the stated controlling process.