Discuss Feedback Control and Feedforward Control system of budgetary control.

There are two types of budgetary control system based on timing of action: Feedback Control: The feedback system of budgetary control, the actual results for the budgeted period are collected and compared with the budgeted figures. The exercise of variance identification is done after the completion of the budget period. The variances are reported and based on the report corrective actions are taken, responsibility is fixed and based on experience, modification in future targets is implemented. As the name suggests, it is an Ex-post Corrective control system of budget. This system of budgetary control is common in organistions where Management Information System (MIS) is not so robust and where data is obtained only after the finalisation of books of account. Though this type of control system is less expensive to maintain but has limitations. Feedforward Control: This the opposite of feedback control system of budgetary control. It is Ex-Ante Preventive control mechanism of budgetary control. The budgets are set at the inception of the budgeted period and the actual results are continuously monitored and compared. The targets are kept realistic as far as possible and the targets are reviewed and reset if necessary. This budgetary control system requires a robust MIS supported by integrated ERP system enabling an entity to get data as and when desired basis. This system is very expensive and beneficial for the organisations where the business environment is dynamic and information has important role in getting edge in competition and todays data warfare.