Final answer:
Continuous budgeting is true practice where budgets are routinely revised to reflect changes over time. This process includes a cycle of planning, revising, editing, and drafting, allowing for more updated and accurate financial control and decision-making.
Step-by-step explanation:
The statement is true. Continuous budgeting refers to the process where budgets are continually reviewed and updated to reflect changes as time passes.
Rather than being a static document fixed for the entire budget period, the continuous budget adjusts for new information, unexpected expenses, or changes in the business environment.
This approach means that management is able to react more swiftly to changes, making sure financial plans are as accurate and relevant as possible.
It involves a cycle of planning, revising, editing, and drafting, which may occur simultaneously and sometimes may seem haphazard. This agility in the budgeting process allows organizations to maintain more robust financial control and provides an updated framework for decision-making.
Continuous budgeting is the practice of revising budgets as time passes. This is true. Continuous budgeting involves regularly reviewing and adjusting budgets to accommodate changes in a company's financial situation and goals. It allows businesses to have more accurate and up-to-date financial plans.