Difference between budget and forecast

Question

Accepted Answer

Budget is a plan for future expenses, while forecast is a prediction of future financial outcomes.

Budget is a detailed financial plan for a specific period, outlining expected income and expenses.
Forecast is an estimate of future financial outcomes based on past data and trends.
Budget is usually set at the beginning of a period, while forecasts can be updated regularly based on new information.
Budgets are more rigid and specific, while forecasts are more flexible and can be adjusted.
Budgets are used for planning and controlling expenses, while forecasts help in predicting financial performance.
Example: A company creates a budget at the start of the year to plan its expenses, while it may update its sales forecast quarterly based on market trends.

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