1.5 Feed-forward control Feed-forward control is defined as the ‘forecasting of differences between actual and planned outcomes and the implementation of actions before the event, to avoid such differences’.
Whereas feedback is based on a comparison of historical actual results with the budget for the period to date, feed-forward looks ahead and compares:
§ the target or objectives for the period, and
§ the actual results forecast.
As with much theory, in practice companies often put a combination of the options above into use. This may involve comparing monthly actual, cumulative actual, and full-year forecast to budget.
Variance analysis of this nature is only as good as the commentary that accomodates it and the actions that it is used to drive.
Advantages
§ It informs managers of what is likely to happen unless control action is taken.
§ It encourages managers to be proactive and deal with problems before they occu中华考试网(www．Examw。com)r.
§ Reforecasting on a monthly or continuous basis can save time when it comes to completing a quarterly or annual budget.
Disadvantages
§ It may be time consuming as control reports must be produced regularly.
§ It may require a sophisticated forecasting system, which might be expensive. |
发表于 2012-2-23 17:09:42
