Which of the following is prepared periodically, reflecting planning changes for a specific future time frame?
A) Flexible budget
B) Static budget
C) Rolling budget
D) Zero-based budget

Question

Quizplus · Accepted Answer

Rolling budget is prepared periodically, usually on a monthly or quarterly basis, by adding another budget period as the current period is completed. It reflects planning changes for a specific future time frame, making it a better choice for organizations that experience significant changes and uncertainties in the business environment. Option A (Flexible budget) is prepared for a range of activity levels and is adjusted as information about actual activity becomes available. Option B (Static budget) is prepared for a specific period and remains unchanged regardless of the level of activity. Option D (Zero-based budget) is prepared by analyzing and justifying all budgeted expenses from scratch, without considering previous budget allocations.

Which of the Following Is Prepared Periodically, Reflecting Planning Changes