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John Moffat.
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myacca1990
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The following statements have been made about feed-forward control budgetary systems:
(1) Feedforward control systems have an advantage over other types of control in that it
establishes how effective planning was.
(2) Feedforward control occurs while an activity is in progress.
Which of the above statement(s) is/are true?
A (1) only
B (2) only
C Neither (1) nor (2)
D Both (1) and (2)Well here what exactly a activity means?If it,s a business activity then option 2 must be correct because let,s say a adverse variance occurs during the year and we take feed forward control to prevent the adverse variance occurring in future.
John Moffat
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Taking action because of a past variance is feedback control – the past variance is feedback and then we try to correct it.
Feedforward control is when we identify something is likely to happen and take action to stop it happening.
myacca1990
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@johnmoffat said:
Taking action because of a past variance is feedback control – the past variance is feedback and then we try to correct it.Feedforward control is when we identify something is likely to happen and take action to stop it happening.
I see so in the question the examiner was referring to a past activity.
John Moffat
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Not really. It is that if the activity is in progress then it too late to change plans for that activity.
myacca1990
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