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A continuous budget represents the same firm commitment that other types of budgets represent.
A continuous budget can be prepared for different levels of activities. The budget that is prepared for only one level of activity is a static budget.
A continuous budget, also called a rolling budget, is one that is prepared for a certain period of time ahead of the present. For example, a 1-year continuous budget will be prepared at the end of every month for the next 12 months.
A continuous budget can be prepared for only one level of activity. The budget that prepared for different levels of activity is called a flexible budget.