How do rolling forecasts enhance traditional budgeting methods? a) Quarterly reviews are eliminated b) Annual budgets remain unchanged c) Regular updates replace rigid annual predictions d) Long-term plans become fixed

Consider the following time series: a. Construct a time series plot. What type of pattern exists in the data? Is there an indication of a seasonal pattern? b. Use a multiple linear regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data: Qtr1 = 1 if quarter 1, 0 otherwise; Qtr2 = 1 if quarter 2, 0 otherwise; Qtr3 = 1 if quarter 3, 0 otherwise. c. Compute the quarterly forecasts for next year.

Consider the following time series data: Construct a time series plot. What type of pattern exists in the data? Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data: Qtr1 = 1 if quarter 1, 0 otherwise; Qtr2 = 1 if quarter 2. 0 otherwise; Qtr3 = 1 if quarter 3, 0 otherwise. Compute the quarterly forecasts for next year based on the model you developed in part (b). Use a multiple regression model to develop an equation to account for trend and seasonal effects in the data. Use the dummy variables you developed in part (b) to capture seasonal effects and create a variable t such that t = 1 for quarter 1 in year 1, t = 2 for quarter 2 in year 1, … t = 12 for quarter 4 in year 3. Compute the quarterly forecasts for next year based on the model you developed in part (d). Is the model you developed in part (b) or the model you developed in part (d) more effective? Justify your answer.

Management may alter its actions during the year to bring actual results into line with the operating budget. An operating budget tends to become less accurate for periods further in the future. To offset this issue, some organizations routinely update their budget based on the latest available information. What would be things that a company would adjust to get the operating budget aligned?

What can government (if anything) do to adapt to the changes before the end of fiscal year if their forecast goals are not met?

Define the terms relative-performance (relative-improvement) contract and rolling financial forecast. What role for these is envisioned by critics of the traditional budgeting process?

Regarding Budgets, which of the following statements is true? a. A budget is a business plan for the short term. O b. A periodic budget is prepared for a particular period of time. O c. Budgets are based on forecasts. However, the performance of a manager should be compared to a target that reflects the actual environment. O d. All the answers are true.

The purpose of a flexible budget is:a) To cap discretionary expenditureb) To produce a revised forecast by changing the original budget when actual costs are knownc) To control resource efficientlyd) To communicate target activity levels within the organization by setting a budget in advance of the period to which it relates

What characterizes dynamic cost analysis in modern accounting?

Which one of the following is the incorrect statement regarding Budgets? Select one: a. Budget is qualitative statement of policy b. All are correct statement regarding budget. C. Budget is a predetermined statement d. Budget prepared for a defined period of time