ACCA PM · Chapter 10 · Question 8 of 9
A manager compares the latest forecast of the year's results with the annual target and takes corrective action before the year end to close an expected shortfall. What type of control is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Feedforward control
Explanation
Feedforward control compares forecast outcomes with targets so that action can be taken before deviations occur. Feedback control compares actual results with the budget after the event and corrects future performance.
More Budgetary systems and types of budget MCQs
- Q1Which of the following is the main criticism of incremental budgeting?
- Q2Under zero-based budgeting, what is a decision package?
- Q3For which of the following types of cost is zero-based budgeting most likely to be useful?
- Q4A company prepares a 12-month budget. At the end of each month, it adds a budget for the same month of the following year and revises the…
- Q5Which of the following is a principle of the 'beyond budgeting' model?
