You have been asked to advise two entirely different businesses about the benefitsand problems associated with what is termed the “traditional approach to budgetingand budgetary control”. One of the businesses operates in a very stable and staticmarket place, where there is little change in either products or demand year on year,whereas the other business operates in a very dynamic, rapidly changing, innovativeenvironment. If your findings suggest that the traditional approach is inappropriate forone or both of the businesses, please suggest and discuss some alternativeapproaches.The “traditional approach” typically involves the following processes:a) Development of assumptions and plans about the factors influencing nextyear’s budget in advance of the budget year starting;b) Approval of the budget before the commencement of the budget year;c) Once the budget year has started, there are monthly comparison reportswhich compares budget and actual performance on both a monthly andcumulative basis;d) Action being taken (where necessary) to correct large variances ordifferences