ACCA · Question 09 · Budgeting and control
Section A
TrendSet, a fast-fashion e-commerce retailer, operates in a highly volatile market where consumer tastes change monthly. They currently use a fixed annual budget but are considering switching to a rolling budget.
Which of the following is the primary advantage of a rolling budget for TrendSet?
Answer options:
It reduces the administrative time and cost associated with the budgeting process.
It ensures that planning is always looking forward for a full 12-month period, incorporating the latest market trends.
It forces managers to justify every cost from scratch, eliminating historical inefficiencies.
It automatically adjusts budget allowances based on the actual volume of sales achieved.
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