Final answer:
A moving 12-month budget is referred to as a continuous budget, which allows for continual updating and planning, facilitating more informed decision-making and strategic financial management. Option B is correct.
Step-by-step explanation:
A moving 12-month budget is referred to as b. a continuous budget. The term 'continuous budget' describes a budget that is continuously updated by adding a new budget period (like a month) when the last period comes to a close. This approach allows businesses to have a rolling 12-month financial plan at all times, which can help in making more timely and informed decisions.
A budget, in general, is a financial plan that outlines income and expenses. It is not only about tracking finances but also about strategic planning for the future. The continuous or rolling budget stands in contrast to a periodic budget, which is usually set for a fixed term, such as a fiscal year, and does not get updated until the period ends.
Using a continuous budget can be particularly beneficial as it enables organizations to adapt to changes in the business environment, ensuring that the financial planning remains up-to-date and relevant. This method fits into the broader financial management strategies of many companies that aim for agility and proactive adaptation in their budgeting processes.