Answer (A) is correct . A continuous (rolling) budget is one that is revised on a regular (continuous) basis. Typically, a company continuously extends such a budget for an additional month or quarter in accordance with new data as the current month or quarter ends. For example, if the budget cycle is 1 year, a budget for the next 12 months will be available continuously as each month ends. The principal advantage of a rolling budget is that it requires managers always to be thinking ahead.
Answer (B) is incorrect because A kaizen budget is one that assumes the continuous improvement of products and processes.
Answer (C) is incorrect because An activity-based budget is one that applies activity-based costing principles to budgeting.
Answer (D) is incorrect because A flexible budget consists of a series of budgets prepared for many levels of activity.
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