BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A formal one-year operating plan to achieve the financial goals of an organization.
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Making future predictions about the budget based on current situations and trends.
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A method that involves estimating expenses for a future period as a percentage of the sales forecast.
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The process of using historical information and knowledge of external factors to predict future sales.
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Detailed explanation-1: -Forecasting uses accumulated historical data and market conditions to predict financial outcomes for future months or years. Aimed at helping management teams anticipate results based on past information, forecasts can be adjusted as new information is available.
Detailed explanation-2: -There are three basic types-qualitative techniques, time series analysis and projection, and causal models.
Detailed explanation-3: -Trend Forecasting is the process of researching and formulating predictions on consumers future buying habits. By identifying the source, tracing the evolution, and recognising patterns of trends, forecasters are able to provide designers and brands with a ‘vision’ of the future.
Detailed explanation-4: -Budgeting quantifies the expected revenues that a business wants to achieve for a future period. In contrast, financial forecasting estimates the amount of revenue or income achieved in a future period.