Question 5 (Question 5a) and 5b) relate to the case study presented below a) An article by Larry Hill reported that in 2014, Mission Health decided to leave the annual budgeting process behind and embark upon a new approach involving a rolling forecast. A rolling forecast differs fundamentally from a traditional annual budget in terms of its time frame and the level of detail required for its analysis. First, a traditional budget calls for financial planning once a year while a rolling forecast uses a continuous planning cycle, such as monthly or quarterly (depending on available manpower). Because the traditional budgeting process occurs only once annually, performance is compared with financial targets that are set at the beginning of the fiscal year. By contrast, Mission's rolling forecast is updated each quarter and compares to desired outcomes for the current and following year. This approach allows an organization to monitor continuous improvement with the expectation of year-over-year growth and productivity improvement. Frontline managers are required to shift their mindset from meeting my budget" on an annual basis to meeting productivity and cost efficiency targets on a continuous basis. The organization must become more agile to adjust to changing conditions. Required: a) Identify three significant advantages of rolling budgets. (3 marks) b) Identify three problems that are likely to be encountered when using rolling budgets. (3 marks) c) Describe the different purposes of budgeting specifically in the context of a manufacturing organisation. (14 marks) d) Identify and describe the various stages in a budgeting process that would be taken by a service organisation (15 marks)