What Is a Continuous (Or Perpetual)budget

question 123

Multiple Choice

What is a continuous (or perpetual) budget?

• A) It is prepared for a range of activity so that the budget can be adjusted for changes in activity.
• B) It is a plan that is updated monthly or quarterly, dropping one period and adding another.
• C) It is a strategic plan that does not change.
• D) It is used in companies that experience no change in sales.

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Definitions:

Quarterly Revenue

The total amount of income generated by a company during a three-month period, typically used to assess financial performance.

Bar Graph

A visual representation of data that uses bars of varying heights to show the values of different categories.

Line Graph

A type of chart used to display information as a series of data points connected by straight line segments.

Component Bar Graphs

A type of bar graph in which each bar is divided into multiple segments or components, representing different parts of the total for easy comparison and analysis.