The Main Advantage of Using a Rolling Budget Is

question 78

Multiple Choice

The main advantage of using a rolling budget is:

• A) The role of information technology in its preparation
• B) Its incorporation of more current information than static or flexible budgets
• C) The reduced need for lower-level input
• D) The ease of calculating variances compared to static or flexible budgets

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Definitions:

Labor Supplied

The total hours that workers are willing and able to work at a given wage rate in a certain period of time.

Job Experience

Refers to the skills and knowledge a person gains while working in a specific job or occupation over a period of time.

Average Wages

A measure of the average income earned by workers, calculated by dividing the total wage bill by the number of employees.

Compensating Differentials

Differences in wages that arise to offset the non-monetary characteristics of different jobs, such as risk or undesirable location.