A rolling budget is another approach to the manager's effort to reduce budgetary slack.

Question

Quizplus · Accepted Answer

A rolling budget is a budget that is continually updated over a specific period of time, such as every quarter or every month, rather than fixed for the entire fiscal year. This approach reduces budgetary slack by requiring managers to regularly review their budget and adjust it to current conditions, thus reducing the likelihood of overestimating expenses and underestimating revenue. Therefore, the statement is true.

A Rolling Budget Is Another Approach to the Manager's Effort