What is a continuous (or perpetual)budget?
A) It is prepared for a range of activity so that the budget can be adjusted for changes in activity.
B) It is a plan that is updated monthly or quarterly, dropping one period and adding another.
C) It is a strategic plan that does not change.
D) It is used in companies that experience no change in sales.

Question

Quizplus · Accepted Answer

A continuous (or perpetual) budget is a rolling plan that is regularly updated by dropping the period just ended and adding a future period, thus maintaining a constant number of periods ahead. This approach allows for continuous planning and adjustments based on recent performance and forecasts.

What Is a Continuous (Or Perpetual)budget