What is the primary purpose of expense forecasting?

Question

Quizplus · Accepted Answer

The primary purpose of expense forecasting is to ensure financial viability. It also helps the organization to fulfill its financial goals. Budgets, and expenses, must be accurately estimated and forecasted in a sound manner. For example, electrical expenses have to be accurately forecasted in the operating budget on an annual basis or there is a possibility that expenses could exceed revenues, thus leaving the organization in a financial deficit.

What Is the Primary Purpose of Expense Forecasting