CA Budgeting & Forecasting Flashcards
6 cards from real CA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CA Budgeting & Forecasting flashcards as text
What is a 'rolling forecast'?
Answer: A continuously updated forecast that adds new periods as previous ones expire
A rolling forecast maintains a consistent planning horizon by appending new periods as each period expires, ensuring a continuous forward view is always available.
Which forecasting method uses historical data patterns, trends, and seasonality to project future values?
Answer: Time series analysis
Time series analysis is a quantitative forecasting technique that uses historical data patterns, including trends and seasonal cycles, to project future values.
What is a 'flexible budget'?
Answer: A budget that adjusts projected costs and revenues based on actual activity levels
A flexible budget adjusts total budgeted costs to reflect the actual volume of activity achieved, enabling a more meaningful performance comparison than a static budget.
In budgeting, what does 'sensitivity analysis' examine?
Answer: How changes in key assumptions affect projected financial outcomes
Sensitivity analysis tests how financial projections change when key assumptions such as sales volume, pricing, or costs are varied from their base-case estimates.
What is 'capital budgeting'?
Answer: The process of evaluating and selecting long-term investment projects
Capital budgeting is the process of analyzing and deciding which long-term investments — such as equipment, facilities, or acquisitions — are worth undertaking.
The 'Delphi method' of forecasting works by:
Answer: Iteratively gathering and refining opinions from a panel of experts
The Delphi method is a structured forecasting technique that uses multiple rounds of anonymous expert questionnaires, with feedback between rounds, to converge on a consensus estimate.