Difference Budgeting and Forecasting

Difference Budgeting and Forecasting

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Similarly Difference between Profit & Loss Forecast and Budgeted Profit & Loss .

Please help me to understand Management accounting function and i would highly appreciate for your Detailed answer ,i had read books on it but could not find my answers .

Rehan Arain

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By User deleted
21st Aug 2006 07:51

Frank Wood is the book
This very good book got what you want. Go to the page and read up what your title is.

Happy reading and explain on this website so we all know you clearly understand without failure to do so.

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By carnmores
21st Aug 2006 18:10

novements for actual
a budget is usually the original exercise
in planning whereas a foreacst is based initally upon actual for year to date plus budget for rest of year.

it is therefore ongoing and why most big companies have a 3 year budget so they have an ongoing rolling forecast.

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By AnonymousUser
20th Aug 2006 14:17

you do not mention financial projections!
you say difference between, but there are many similarities.

A forecast is like using a crystal ball. you are looking into that there future to try and predict your financial figures.

A budget is similar in many respects in that you are using educated guesswork.
However, a budget would be used with control in mind ie an attempt to keep spending under control. People say: I am sticking to that there budget, meaning I am not going to spend more than a certain amount on such an item.

A forecast may contain more fanciful figures depending on the use to which they were being put. ie we may be approaching the bank to ask for a loan etc.

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By jsriram36
23rd Aug 2006 14:00

Budget & Forecast
A budget is a cost control exercise made out for the immediately following year (called the Budget period) whereas the forecast is a plan for any period depending upon the need.For example cash forecast for week ending.....is made with likely receipts , payments and the balance position at the end of the week.

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