Which statement best describes a rolling forecast?

• A. It is a fixed plan for the year with no updates.
• B. It is updated only once a year.
• C. It is a forecast for marketing results only.
• D. It is continuously updated for the next 12 months as new data arrives.

Answer: (D)

Rolling forecasts keep the planning horizon moving forward as new data comes in, so you continuously re-project the next 12 months rather than sticking with a static plan. The forecast is updated with the latest actual results and updated assumptions, sliding the time window forward each period. This makes plans more responsive to changing conditions and supports better resource allocation across the year. It isn’t a fixed annual budget, nor is it limited to marketing results—the approach applies to the whole business and is refreshed regularly. That's why describing it as continuously updated for the next 12 months as new data arrives captures the essence of a rolling forecast.