Cade Is Promoted to Plant Manager at Mallards Manufacturing

Cade is promoted to plant manager at Mallards Manufacturing. It is his first time having to create a budget. He reviews the budget for the previous year and compares it to the actuals for the same time period. He then creates a budget for the next year using his knowledge of what he needs. When he submits the budget to finance, he is told that he should update the last closed period with actuals and then create a budget for the next two years. Which of the following is true?

A) Because Cade was told by finance that he had to change his budget, he is working with an imposed budget.
B) Cade is working with a rolling budget at Mallards Manufacturing.
C) The new budget that Cade will create will be less realistic than the original budget.
D) The new budget will have slack built into because the actuals are being used for the last current period.