55.0k views
3 votes
TRUE or FALSE: A rolling budget is the same as a continuous budget.*

User Solidak
by
7.9k points

1 Answer

5 votes

Final answer:

A rolling budget is not the same as a continuous budget; both involve updating budgets throughout the year, but they use different methods to maintain future projections.

Step-by-step explanation:

False. A rolling budget and a continuous budget are similar but not identical. A rolling budget is a type of budget that is continuously updated throughout the year by adding a new budget period (like a month or a quarter) as the most recent period concludes.

This means at any point in time, the budget always extends a fixed number of periods into the future. On the other hand, a continuous budget maintains a constant projection into the future, typically for a full year, which continually rolls forward one month or quarter at a time as each month or quarter completes.

It's also an ongoing budgeting approach but focuses on maintaining a full year of budget data ahead.

User Karansardana
by
8.7k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.