ICSE Class 10 Commerce 2022 Solved Papers
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Question : 18
Total: 29
State three differences between Budget and Forecast.
Solution:
Budget | Forecast |
---|---|
1. Budget shows the policy and pro gramme to be follows in a future period under planned conditions. | 1. Forecast is a mere estimate of what is likely to happen. It is a statement of probable events which are likely to happen under anticipated conditions during a specified period of time. |
2. It is usually planned separately for each accounting period. | 2. It may cover a long period or years. |
3. It reveals the shape or direction of a company's finance. | 3. It tracks whether or not the company is meeting its financial goals as outlined in the budget. |
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