Question

As firms are facing financial difficulties during the pandemic, top managers decide on their firm's operating budget and this budget determines their future staffing levels needs. This is an example of bottom-up judgmental forecasting.

True or False​

Answer 1

Answer:

true

Explanation:

definitely like mar dena

Answer 2

Budgeting and financial forecasting are tools that companies use to establish a plan for where management wants to take the company—budgeting—and whether it is heading in the right direction—financial forecasting.

Although budgeting and financial forecasting are often used together, distinct differences exist between the two concepts. Budgeting quantifies the expectation of revenues that a business wants to achieve for a future period, whereas financial forecasting estimates the amount of revenue or income that will be achieved in a future period.Budgeting is the financial direction of where management wants to take the company, helping quantify the expectation of revenues that a business wants to achieve for a future period,Financial forecasting tells whether the company is headed in the right direction, estimating the amount of revenue and income that will be achieved in the future.Budgeting creates a baseline to compare actual results to determine how the results vary from the expected performance. Financial forecasting is used to determine how companies should allocate their budgets for a future period, but unlike budgeting, financial forecasting does not analyze the variance between financial forecasts and actual performance.