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What Is an Essential Difference Between a Forecast and a Budget

Question 1

Multiple Choice

What is an essential difference between a forecast and a budget?


A) Forecasts are made once a year, budgets are made each relevant accounting period
B) Forecasts express market expectations, budgets express business objectives
C) Forecasts are made on a "rolling" basis; budgets are based on historical performance
D) Forecasts are drawn up after and based on budgets

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