US CMA Part 1 · Chapter 2 · Question 20 of 30
A company always maintains a 12-month budget by adding a new month to the end of the budget as each month is completed. This is an example of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A continuous (rolling) budget
Explanation
A continuous or rolling budget is updated by dropping the period just completed and adding a new future period, so the planning horizon always remains the same length.
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