Question

Which of the following budgets allows managers to update information to accommodate changes in cost and revenue by adding a month, quarter, or year after the end of a period?

•The financial budget
•The rolling budget
•The operating budget
•The cash budget

Answer 1

The correct answer is option 2. The rolling budget allows managers to update information to accommodate changes in cost and revenue by adding a month, quarter, or year after the end of a period.

Step-by-step explanation:

The budget that allows managers to update information to accommodate changes in cost and revenue by adding a month, quarter, or year after the end of a period is the rolling budget.

A rolling budget is a continuously updated budget that adds a new period as the old one ends. It allows managers to adjust their plans and forecast based on actual performance and changing circumstances.For example, if a company's initial budget projected a certain revenue for the year, but halfway through the year, they realize that sales are not meeting expectations, they can use the rolling budget to make adjustments for the remaining months by revising revenue targets, cutting costs, or reallocating resources.