Question

How does the scope of forecasts differ from budgets?

a.

Forecasts have a limited scope with a financial plan.

b.

Budgets have a wide scope without any commitment.

c.

Forecasts have wide scope and use without commitment.

d.

Budgets have a limited scope without any financial plan.

Posted under IC 89 Management Accounting

Answer: (c).Forecasts have wide scope and use without commitment. Explanation:Forecasts have a wide scope and use in financial or non-financial terms without any commitment or plan to achieve, while budgets have a limited scope with a financial plan to be achieved or commitment to be done in a specific period.

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