Question

How do budgeting and forecasting differ?

How do budgeting and forecasting differ?

Homework Answers

Answer #1

I have answered the question below

Please up vote for the same and thanks!!!

Do reach out in the comments for any queries

Following are the differences between Budgeting versus Forecasting:

  • Forecasting to a great extent includes dissecting past information, understanding the patterns and utilizing it to appraise future results. Budgeting is tied in with communicating the financial related arrangements in quantitative terms. Budgeting is finished by the administration in close coordination with the financial department .
  • Budgeting is for the most part a financial presentation related introduction of an organization's strategy. Forecasting, then again, assists with foreseeing patterns in business.
  • Under Forecasting, there is no set objective. For the most part, it is a gauge that the organization figures it is ready to accomplish. Budgeting, then again, has a set objective as the executives needs to choose the costs, different targets and dispense assets to the divisions.
  • Budgeting are less adaptable and organizations change or make alters to it less much of the time. An organization makes changes in spending plans just when there is any adjustment in a basic supposition. Then again, organizations alter Forecasting all the more as often as possible attributable to ecological changes or include any new or applicable information.
  • Forecasting is generally done on a quarterly premise, six-month to month premise or yearly premise as per the choice of the administration. Budgeting, then again, is done on a yearly premise. For the remainder of the year, the board and the whole association follows a similar spending plan. The board may assess spending plan once in a while, and take activities if necessary.
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is re-forecasting, and how is it (or could it be) used in the budgeting process...
What is re-forecasting, and how is it (or could it be) used in the budgeting process in your organization? How is re-forecasting similar to (and different from) continuous budgeting or rolling budgets?
. Explain how forecasting to develop a cash budget differs from forecasting for capital budgeting analysis....
. Explain how forecasting to develop a cash budget differs from forecasting for capital budgeting analysis. Include differences in the information used in the forecast, and how differences in the purpose of the forecast influences the information used and interpretation of the result.
Describe and apply various quantitative forecasting methods and explain how they differ from qualitative forecasting methods....
Describe and apply various quantitative forecasting methods and explain how they differ from qualitative forecasting methods. minimum of 300 words
In finance, how does short-term financial planning differ from long-term or capital budgeting?
In finance, how does short-term financial planning differ from long-term or capital budgeting?
On the basis of the wal-mart company answer the following questions. Planning, sales forecasting and budgeting...
On the basis of the wal-mart company answer the following questions. Planning, sales forecasting and budgeting application criteria: 1 strategic planning and linkage to strategic marketing 2 efficient and effective sales strategy 3 forecasting approaches and methods of sale forecasting 4 purpose and process of sales budget
Accounting and budgeting- How do they keep track of their finances and why is budgeting important...
Accounting and budgeting- How do they keep track of their finances and why is budgeting important to their business?
How do cash forecasting and short-term borrowing strategies relate?
How do cash forecasting and short-term borrowing strategies relate?
How do PCR and qPCR differ?
How do PCR and qPCR differ?
What are the three types of RNA and how do those types differ? How do they...
What are the three types of RNA and how do those types differ? How do they differ in prokaryotes versus eukaryotes? What role do these different RNAs play in translation
Explain the basics of forecasting. What is the typical purpose for forecasting? How is a forecasting...
Explain the basics of forecasting. What is the typical purpose for forecasting? How is a forecasting model typically developed?  
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT