CAF-7 · Chapter 11 · Question 4 of 15
A company decides to update its annual budget continuously by adding a new budget month at the end of each month that passes, ensuring management always has a full 12-month forecast ahead of them. This technique is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rolling budgeting
Explanation
A rolling budget is continuously updated by adding a new accounting period (e.g., a month or quarter) as the earliest period expires. This ensures the business always plans for a full year ahead, adapting to current trends.
More Budgeting MCQs
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