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) Participatory budgeting.
B) Capital budgeting.
C) Balanced budgeting.
D) Continuous budgeting.
E) Primary budgeting.

Question

Quizplus · Accepted Answer

The practice described in the question is continuous budgeting. It involves creating a budget for a specific number of future periods, and then updating and adding new budgets as each period is completed, so that there is always a budget covering the same number of future periods. This approach allows for greater flexibility and adaptability than traditional budgeting methods. Choices A and C refer to different types of budgeting approaches, while choice B specifically refers to budgeting for capital expenditures. Choice E is not a recognized term in budgeting.

The Practice of Preparing Budgets for Each of Several Future