Match on action:

This film editing technique is also called 'cutting on action', its purpose is to give the impression  of continuous time when watching the edited film. This happens when one shot is cut to another, however still matching the first shots action. You would have a topic to begin the action which would be the first shot and the next shot would be to carry it through to completion.The audience are distracted from noticing the cut, due to a visual bridge. If the cuts do not match the effect will be noticeable and the action will loose its illusion. http://www.youtube.com/watch?v=lXqXExvwbQY   (starts at 0.16)
In this clip it is really important for them to be getting the cuts accurate, otherwise the scene wouldn't flow and the effect that they are trying to create would be unsuccessful. As each person takes the hat off and passes it through to the next there is a cut for the other person to have their hand out ready to receive the hat, these cuts are edited together to create the run of the scene and make it look continuous. You don't see the actors switching positions or touching the hat to make it move. This technique and effect is,'Match on action'.