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MC Question 19

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 of the following types of control is the sales manager’s actions an example of?

A. Feedforward control
B. Negative feedback control
C. Positive feedback control
D. Double loop feedback control

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