Economics · Management Control Systems
X Co uses rolling budgeting, updating its budgets on a quarterly basis. After carrying out the last quarter's update to the cash budget, it projected a forecast cash deficit of $400,000 at the end of the year. Consequently, the planned purchase of new capital equipment has been postponed. Which type of control is this management action an example of?
- 1Feedforward control✓
- 2Negative feedback control
- 3Positive feedback control
- 4Double loop feedback control
Correct answer
Feedforward control
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