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Forecast differs from budget because forecast is:
AA target
BA probable estimate
CAlways accurate
DA legal document
Answer & Solution
Correct answer: B. A probable estimate
1. Forecast is an assessment of probable future events.
2. A budget is a commitment or target the management seeks to attain.
3. Forecasts allow flexibility; budgets do not.
4. Hence forecast is a probable estimate.
_Source: ICAI BoS Inter Paper 3, Ch 15 "Budget", §15.1 ¶6_
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