What is feed forward control primarily used for?

Feed forward control is primarily used for forecasting potential variances before they happen, making it a proactive approach in the management accounting process. This type of control focuses on predicting future outcomes based on current data and information, allowing an organization to implement strategies or make adjustments prior to experiencing any negative effects or deviations from plans. By anticipating what might happen, businesses can take corrective actions in advance rather than just reacting to issues after they occur.

This proactive strategy enhances overall efficiency and effectiveness in decision-making and resource allocation, which is particularly important for maintaining budgetary control and achieving organizational goals. It enables management to identify risks and opportunities in advance, supporting a more agile and responsive operational framework.