Continuous (rolling) budget means:
AA budget that excludes seasonality applicable to the assessment
BA budget revised yearly as treated in the textbook
CAn interim budget
DA budget that drops the past month and adds the next month
Answer & Solution
Correct answer: D. A budget that drops the past month and adds the next month
1. A rolling budget always covers a fixed future horizon (e.g. 12 months).
2. As each month closes, that month is dropped and a new month is added at the end.
3. The budget therefore rolls forward continuously.
4. Hence the definition matches the first option.
_Source: ICAI BoS Inter Paper 3, Ch 15 "Budget", §15.8.4 ¶2_
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