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A Continuous Budget Is a 12-Month Forward-Rolling Budget That Summarizes

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A continuous budget is a 12-month forward-rolling budget that summarizes budgets for the next 12 months.


Definitions:

Actual Level

The real, observed level of activity, production, or performance in a given period.

Actual Results

The real, measured outcomes of business activities, often compared against budgeted or forecasted figures.

Flexible Budget

An adjustable budget that changes or scales according to the level of activity or output, making it more useful for performance evaluation.

Total Variable Cost

The total of all costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

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