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ACCA Strategic Professional · Advanced Performance Management · Technology and information systems

Dunmore Telecom wants to use big data to build rolling forecasts in place of its annual fixed budget. Which is the most likely benefit of this approach?

The likely benefit is that forecasts can be updated frequently using near real-time data, making planning more responsive to changes in the environment. Variance investigation, budget holder involvement and historical data still remain necessary.

  1. AForecasts can be updated frequently using near real-time data, improving responsiveness to changeCorrect
  2. BVariances will no longer need to be investigated
  3. CBudget holders will no longer need to participate
  4. DHistorical data becomes unnecessary

Explanation

Real-time data allows forecasts to be refreshed regularly, making planning more responsive. Variance investigation, managerial participation and historical data remain relevant, so the other options are wrong.

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