How budgeting is different from forecasting

Question

Accepted Answer

Budgeting is a plan for future expenses, while forecasting is an estimate of future financial outcomes.

Budgeting involves setting financial goals and creating a plan to achieve them.
Forecasting involves predicting future financial outcomes based on past data and current trends.
Budgeting is more focused on controlling expenses and allocating resources, while forecasting is more focused on predicting revenue and profits.
Budgeting is typically done on an annual basis, while forecasting can be done on a monthly, quarterly, or annual basis.
Examples of budgeting include creating a household budget or a business budget, while examples of forecasting include predicting sales revenue or stock prices.

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