Final answer:
No, rolling budgets do not help in reducing budgetary slack. Rolling budgets are a type of budgeting system that provides a more accurate and flexible approach to budgeting, but they alone do not address the issue of budgetary slack. Reducing budgetary slack requires proactive steps to identify and eliminate unnecessary or inflated expenses.
Step-by-step explanation:
No, rolling budgets actually do not help in reducing budgetary slack. Rolling budgets are a type of budgeting system where the budget is continuously updated over a period of time, such as quarterly or monthly. The purpose of rolling budgets is to provide a more accurate and flexible budgeting approach by adjusting the budget based on current and forecasted information. However, rolling budgets alone do not address the issue of budgetary slack, which is the intentional padding or overestimation of expenses in a budget.
Reducing budgetary slack requires taking proactive steps to identify and eliminate unnecessary or inflated expenses. This can be achieved through close monitoring of expenses, setting realistic targets, and regular review and adjustment of the budget based on actual performance. Rolling budgets can be a useful tool in this process as they allow for more frequent updates and adjustments, but they are not a direct solution to reducing budgetary slack.