Rolling budgets are better for managing uncertainty in organisations because they:
A) reduce the level of uncertainty in the business environment concerned.
B) cheaper to develop than annual budgets.
C) allow for more short term and therefore accurate predictions than the annual budget.
D) allow for better strategies to be developed by organisations.

Question

Quizplus · Accepted Answer

Rolling budgets allow for more short term and accurate predictions, which is advantageous in managing uncertainty as it allows the organization to make adjustments and adaptations as needed in real-time. A and D are incorrect as rolling budgets do not necessarily reduce uncertainty in the business environment or guarantee better strategies. B is also incorrect, as rolling budgets may require more frequent development and updates compared to annual budgets, making them more expensive in the long run.

Rolling Budgets Are Better for Managing Uncertainty in Organisations Because