CIMA BA2 · Chapter 6 · Question 11 of 13
What is a ROLLING (continuous) budget?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A budget that is continuously updated by adding a further period, such as a month or quarter, as the earliest period expires
Explanation
A rolling budget always covers the same length of time ahead (for example 12 months), because a new period is added as each period ends. This keeps the budget realistic in changing conditions, at the cost of more time spent budgeting.
More Budgeting MCQs
- Q13Which of the following items would NOT appear in a cash budget?
- Q1What is meant by the PRINCIPAL BUDGET FACTOR?
- Q2Which of the following is NOT a purpose of budgeting?
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