Chapter 22, Problem 3DQ

To determine

Introduction:

Continuous budgeting also known as a rolling budget is a budgeting technique wherein budgets are not fixed for the entire year but are continuously revised at frequent intervals to adjust them according to the current situations in the company. Continuous budgeting enables management adjusts budgets every time in reference to the activity level in the organization. These are prepared for shorter span of time and are revised every time based on incremental changes in the organization.

Requirement 1:

To State:

The benefits of continuous budgeting.