A Disadvantage of Rolling Budgets Is That They

question 107

Multiple Choice

A disadvantage of rolling budgets is that they:

• A) cost more to execute than annual budgets.
• B) require organisations to re-think how they manage their business.
• C) only relevant in uncertain environments.
• D) are very complicated relative to annual budgets.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a competitive market.

Profit

The profit earned when the total income surpasses all the expenditures, costs, and taxes necessary for maintaining the business.

Profit-Maximizing

A strategy or approach taken by firms to achieve the highest possible profit from their operations.

Market Price

The existing rate at which an item or service is offered for buying or selling on the market.