Question

What Is Forecasting And Budget?

Answer 1

Answer:

Financial forecasting estimates a company's future financial outcomes by examining historical data. ... Used to determine how companies should allocate their budgets for a future period. Unlike budgeting, financial forecasting does not analyze the variance between financial forecasts and actual performance.

The key difference between a budget and a forecast is that a budget lays out the plan for what a business wants to achieve, while a forecast states its actual expectations for results, usually in a much more summarized format. In essence, a budget is a quantified expectation for what a business wants to achieve.