How do rolling forecasts enhance traditionalbudgeting methods?a) Quarterly reviews are eliminatedb) Annual budgets remain unchangedc) Regular updates replace rigid annual predictionsd) Long-term plans become fixed

For a predetermined time frame, such the next 12 or 18 months, a rolling forecast is a financial…

Answered: How do rolling forecasts enhance…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section6.4: Projected Monthly Financial Statements

Problem 1CC

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Traditional Budgeting Method
Flexible budgets have the characteristics of what?
Which answer is correct
Consider the following time series: a. Construct a time series plot. What type of pattern exists in the data? Is there an indication of a seasonal pattern? b. Use a multiple linear regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data: Qtr1 = 1 if quarter 1, 0 otherwise; Qtr2 = 1 if quarter 2, 0 otherwise; Qtr3 = 1 if quarter 3, 0 otherwise. c. Compute the quarterly forecasts for next year.
Please give me answer
Consider the following time series data: Construct a time series plot. What type of pattern exists in the data? Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data: Qtr1 = 1 if quarter 1, 0 otherwise; Qtr2 = 1 if quarter 2. 0 otherwise; Qtr3 = 1 if quarter 3, 0 otherwise. Compute the quarterly forecasts for next year based on the model you developed in part (b). Use a multiple regression model to develop an equation to account for trend and seasonal effects in the data. Use the dummy variables you developed in part (b) to capture seasonal effects and create a variable t such that t = 1 for quarter 1 in year 1, t = 2 for quarter 2 in year 1, … t = 12 for quarter 4 in year 3. Compute the quarterly forecasts for next year based on the model you developed in part (d). Is the model you developed in part (b) or the model you developed in part (d) more effective? Justify your answer.
Management may alter its actions during the year to bring actual results into line with the operating budget. An operating budget tends to become less accurate for periods further in the future. To offset this issue, some organizations routinely update their budget based on the latest available information. What would be things that a company would adjust to get the operating budget aligned?
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What can government (if anything) do to adapt to the changes before the end of fiscal year if their forecast goals are not met?
Define the terms relative-performance (relative-improvement) contract and rolling financial forecast. What role for these is envisioned by critics of the traditional budgeting process?
Regarding Budgets, which of the following statements is true? a. A budget is a business plan for the short term. O b. A periodic budget is prepared for a particular period of time. O c. Budgets are based on forecasts. However, the performance of a manager should be compared to a target that reflects the actual environment. O d. All the answers are true.
The purpose of a flexible budget is:a) To cap discretionary expenditureb) To produce a revised forecast by changing the original budget when actual costs are knownc) To control resource efficientlyd) To communicate target activity levels within the organization by setting a budget in advance of the period to which it relates

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How do rolling forecasts enhance traditional budgeting methods? a) Quarterly reviews are eliminated b) Annual budgets remain unchanged c) Regular updates replace rigid annual predictions d) Long-term plans become fixed