Question

Another term used to describe a rolling budget time frame is a __________ budget.

Answer 1

Another term for a rolling budget time frame is a continuous budget. It is updated regularly by adding new periods, making budgeting adaptive to changing conditions and keeping it current.

Step-by-step explanation:

A continuous budget is another term used to describe a rolling budget time frame. A continuous or rolling budget is updated regularly to add a new budget period as the most recent budget period is completed. This approach to budgeting allows organizations to adapt their financial planning to current business environments and makes the budget an always up-to-date financial tool.

Step-by-Step Explanation

1. A rolling budget starts with establishing a budget period, such as 12 months.
2. As time progresses, and one month ends, that month is dropped from the budget plan.
3. A new month is then added to the end of the budget period, effectively rolling the budget forward.
4. This process continues each month, keeping the budgeting period fixed at, for example, 12 months, but moving forward through time.

The benefit of a continuous budget is that it takes into account the latest available data and trends, which can lead to more accurate and relevant financial planning.