What do you understand by Budgeting and Forecasting?

Question

Accepted Answer

Budgeting and forecasting involve the process of planning and estimating future financial outcomes.

Budgeting is the process of creating a detailed plan for income and expenses over a specific period.
Forecasting involves predicting future financial performance based on historical data and market trends.
Budgeting helps in setting financial goals, allocating resources, and monitoring financial performance.
Forecasting assists in making informed decisions, identifying potential risks, and planning for growth.
Both budgeting and forecasting are essential tools for financial planning and decision-making.
Example: A company creates an annual budget to allocate funds for various departments and projects.
Example: A financial analyst uses historical sales data and market trends to forecast future revenue.
Example: Budgeting and forecasting are commonly used in personal finance to manage expenses and savings.

Accepted Answer

Budget is the views of shape and direction of the companies finance while the forecast whether or not the companies is meeting their financial goal as soon as outlined in the budget Budget means plan

Accepted Answer

Budgeting is a detailed statement of an enterprise financial activity which includes revenue, expenses, investment, and cash flow for a particular period .

What do you understand by Budgeting and Forecasting?

Top Accenture Senior Analyst interview questions & answers

Popular interview questions of Senior Analyst

Top HR questions asked in Accenture Senior Analyst