Final answer:
A continuous (or perpetual) budget is one that is updated regularly, typically on a monthly or quarterly basis, by dropping the oldest period and adding a new one to maintain a constant future outlook.
Step-by-step explanation:
A continuous (or perpetual) budget is B. it is a plan that is updated monthly or quarterly, dropping one period and adding another. This approach ensures that the budget is always extended one year into the future, making it a dynamic tool for financial planning. The main purpose of such a budget is to help organizations adapt to changes and make informed decisions.
It helps to ensure that the expenditures are in line with the financial goals and objectives of a company. Unlike static budgets, a perpetual budget allows for adjustments based on actual performance and changing circumstances, facilitating more flexible and responsive financial management.