A four-quarter rolling budget encourages management to be thinking about the next 12 months.

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A rolling budget is a type of budget that is continuously updated over a set period, typically 12 months. With a four-quarter rolling budget, the focus is on the next 12 months, encouraging management to be proactive in their planning and decision-making. This is in contrast to a static budget, which is prepared once a year and does not allow for adjustments to changing circumstances throughout the year.

A Four-Quarter Rolling Budget Encourages Management to Be Thinking About