The finance function of Bagnall Co has been asked to oversee the production of thecompany’s budgets for the forthcoming year. In their initial instructions to the company’svarious divisions the finance function has stressed that once budgets for next year have beenformally agreed steps will be taken to maintain their ongoing relevance by undertaking amonthly review of budgets for forthcoming months in the light of performance in earliermonths.Which of the following best describes this approach to budgeting?
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