A difference between basic financial planning and forecast-based planning is
A) the time horizon is shorter in forecast-based planning.
B) forecast-based planning incorporates environmental data and extrapolates current trends.
C) basic financial planning utilizes consultants with sophisticated techniques.
D) basic financial planning utilizes scenarios and contingency strategies.
E) basic financial planning relies heavily on input from lower levels in the organization.

Question

Quizplus · Accepted Answer

The key difference between basic financial planning and forecast-based planning is that the latter approach incorporates environmental data and extrapolates current trends. Basic financial planning typically focuses on shorter-term planning and may not consider external factors that could impact financial performance. Additionally, basic financial planning may utilize consultants or internal resources to develop sophisticated techniques, while forecast-based planning often relies on statistical analysis and modeling to project future financial outcomes.

A Difference Between Basic Financial Planning and Forecast-Based Planning Is