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Questions
Distinguish between budget and forecast.
State three difference between budget and forecast.
Distinguish Between
Solution
| Budget | Forecast | ||
| 1. | A budget is a statement of planned events. It reflects the programme to be followed in future under definite conditions. | 1. | A forecast is merely an estimate of what is likely to happen. It is a statement of probable events. |
| 2. | A budget is a plan that requires authority of management. | 2. | A forecast is a judgement that can be made by anybody. |
| 3. | Budget is prepared for a year or lesser period. | 3. | Forecasts may cover a period of several years. |
| 4. | Budgeting involves control of variations from the approved plan. | 4. | Forecasting involves no such control. |
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Notes
Students can refer to the provided solutions based on their preferred marks.
Comparison Between Budgeting and Forecasting
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