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rolling budget

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › rolling budget

  • This topic has 5 replies, 3 voices, and was last updated 11 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
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  • April 7, 2014 at 2:30 pm #164636
    kgomotso basiami
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    what are the disadvantages of rolling budget?

    April 7, 2014 at 3:32 pm #164648
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54718
    • ☆☆☆☆☆

    Not many really 🙂

    The main one is that it is time-consuming the have to produce it every month.
    Also, the fixed budget does give an overall target profit to aim for, whereas the budget profit keeps changing with a rolling budget.

    Finally, the fixed budget is useful for planning resources needed over the coming year. A rolling budget is not as easy to use for that purpose.

    April 8, 2014 at 11:32 am #164755
    kgomotso basiami
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    thanks

    April 8, 2014 at 12:09 pm #164761
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54718
    • ☆☆☆☆☆

    You are welcome 🙂

    April 30, 2014 at 1:31 pm #166890
    joan
    Participant
    • Topics: 0
    • Replies: 1
    • ☆

    How is a rolling budget prepared?

    April 30, 2014 at 1:40 pm #166896
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54718
    • ☆☆☆☆☆

    It is prepared the same way as a normal budget except that it is prepared every month, for the following twelve months.

    So every month it means updating the 11 months that have already been budgeted and adding one extra month.

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