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Hi john,
I’m quite confused with this
Sales budget of a company on Jan 2014 is 20000 and it is expected to grow at 1000 per month and the 12 month budget for year end Dec 2014 correctly shows 306000. What would be revenue under rolling budget for Jan 2013Answer says 318000
Rolling means adding on. So shouldn’t it 307000If the budget for Jan 14 is 20,000, then the budget for Jan 2015 will be 20,000 + (12 x 1000) = 32,000.
Therefore the rolling budget for the year to the end of January 2015 will be 306,000 – 20,000 + 32,000 = 318,000.
I understand why you added 32000 but why deduct a 20 ?
Is it last January 20000Because the rolling budget is for the 12 months from February 2014 to the end of January 2015. The budget for the 12 months to December 2014 included January 2014.
Hi John I’m again confused and back at it. If they say the budget of dec is 306000 that means they have accounted for expected 1000 increase every month from Jan untill Dec correct. Why would we add it again 12*1000
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