4 - 5 ParagraphsFor this assignment, you must answer the following questions:

What is the...

Question

4 - 5 ParagraphsFor this assignment, you must answer the following questions:

What is the difference between forecasting and budgeting?
What is the difference between an operating budget and a cash budget?
Explain what zero-based budgeting is and how it can improve the efficiency 
of the organization?

David · Accepted Answer

 What is the difference between forecasting and budgeting? 
 What is the difference between an operating budget and a cash budget? 
 Explain what zero-based budgeting is and how it can improve the efficiency of the organization?
SOLUTION: 
 What is the difference between forecasting and budgeting?
Forecasting and Budgeting forms the two important constituents of managerial decision making process. 
Even though both are distinct functions, but their dependency on each other make them inseparable as 
a function. While the process of budgeting requires monetizing the plan and giving that plan an 
understandable action. Forecasting involves prediction of expected end results, by adjusting the existing 
plans according to the latest experience, information and prevailing circumstances.  Budgeting is the 
process of monetizing standard plan and hence it provides an outlook about the expected end results, 
based upon what has been established or planned.  While forecasting helps management to adjust the 
standard for a relevant range of time period that has been fixed earlier,

4 - 5 Paragraphs For this assignment, you must answer the following questions: What is the difference between forecasting and budgeting? What is the difference between an operating budget and a cash...

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