Final answer:
A moving, 12-month budget that is updated monthly is referred to as a continuous budget. It is used by various types of businesses, including manufacturing firms, and is a valuable tool for maintaining financial discipline and long-term planning.
Step-by-step explanation:
A moving, 12-month budget that is updated monthly is known as a continuous budget. This type of budgeting approach is not specific to any one type of business and can be used by manufacturing firms or others. The continuous budget has advantages in that it allows organizations to constantly plan for the upcoming 12 months, ensuring that the budget remains relevant and reflects any changes in the business environment or company's operations.Budgeting can be seen as difficult because it involves making choices and potentially giving up certain expenditures to stay within financial goals.
The difficulty often arises from the discipline required to maintain a budget and the need to continuously assess and adjust financial plans, as seen with a continuous budget. This process, while potentially time-consuming, is not a waste of time and effort; it is part of sound financial management that contributes to the long-term success of an organization.moving, 12-month budget that is updated monthly is d. a continuous budget. A continuous budget is a budget that is regularly updated to reflect changing circumstances and provide an ongoing view of financial performance.This type of budget allows businesses to make adjustments and respond to changes in their financial situation throughout the year, rather than relying on a static budget that remains fixed for the entire year.For example, if a manufacturing firm experiences an unexpected increase in material costs, a continuous budget would allow them to revise their budget to account for this change and make necessary adjustments to other areas of spending.