Question

31. What type of budget is designed to take into account forecast change in costs, prices, etc.
(A) flexible budget
(B) functional budget
(C) rolling budget
(D) master budget

Answer 1

Answer:

this a answer for(c) rolling budget

Answer 2

Answer:

The correct answer is option (C) rolling budget.

Explanation:

A rolling budget is continually updated to feature a replacement budget period because the most up-to-date budget period is completed. Thus, the rolling budget involves the incremental extension of the prevailing budget model. By doing so, a business always contains a budget that extends one year into the long run.

A rolling budget imply considerably more management attention than is that the case when an organization produces a one-year static budget, since some budget updating activities must now be repeated monthly. additionally, if an organization uses participative budgeting to form its budgets on a rolling basis, the whole employee time used over the course of a year is substantial. Consequently, it's best to adopt a leaner approach to a rolling budget, with fewer people involved within the process.

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