Which of the following is not a characteristic of a rolling budget?
A)This method of budgeting always includes 12 months of data.
B)As one month ends, it is removed from the budget and the entire budget rolls forward one month.
C)At the beginning of the budget period, management breaks down only the first quarter into months.
D)It requires a top-down approach.

Question

Quizplus · Accepted Answer

The characteristic of breaking down only the first quarter into months is not a characteristic of a rolling budget. Rolling budgeting involves updating the budget periodically, such as monthly or quarterly, by adding another period at the end of the budget period as the current period is completed. Rolling budgets do not necessarily require a top-down approach or a specific length of time for the budget period.

Which of the Following Is Not a Characteristic of a Rolling