The practice of preparing budgets for each of several future periods and revising those budgets as each period is completed, adding a new budget each period so that the budgets always cover the same number of future periods, is called:
A) Balanced budgeting.
B) Participatory budgeting.
C) Primary budgeting.
D) Capital budgeting.
E) Continuous budgeting.

Question

Quizplus · Accepted Answer

The practice described in the question is known as continuous budgeting. This approach involves regularly preparing and revising budgets to account for changing circumstances and ensure that they always cover a consistent number of future periods. It is a more flexible and dynamic approach to budgeting than other methods such as traditional static budgeting, which only covers a single period and may become quickly outdated if conditions change.

The Practice of Preparing Budgets for Each of Several Future