Question

The budgeting process that involves adding a month to the end of the budget period at the end of each month, thus maintaining a twelve-month planning horizon, is referred to as:

Multiple Choice
a. participative budgeting.
b. continuous budgeting.
c. zero-based budgeting.
d. capital budgeting.

Answer 1

b. continuous budgeting

Step-by-step explanation:

Continuous budgeting (sometimes referred to as rolling budgeting) involves continually adding an additional month to the end of a multi-period budget as each month goes by.

The continuous budgeting concept is usually applied to a twelve-month budget, so there is always a full year budget in place.