Section A

An AI software developer operates in a highly dynamic market where technology changes rapidly. They use a budgeting system where, as one month ends, another month is added to the end of the budget period.

What is this type of budget called?

A rolling budget (or continuous budget) is a budget kept continuously up to date by adding another accounting period (e.g., a month or quarter) when the earliest accounting period has expired. This is highly suitable for dynamic, fast-changing industries as it forces management to constantly look ahead.