Concept explainers
Explain which statement has more details, the budget for an upcoming period or long-range forecast.

Explanation of Solution
Budget: A budget is a blueprint of all the operations that a company has to achieve in order to complete the goal of the company.
Financial
Details in the budget for an upcoming period or long-range forecast:
The budget for the upcoming period is more precise and detailed than long-range forecast because it needs to analyze for a shorter period. Financial forecasting only uses past data to predict future data. The budget uses the current market trend and business trend to analysis and then makes a budget for the upcoming period.
Thus, the budget for the upcoming period has more details then the long-range forecast.
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Chapter 13 Solutions
FUNDAMENTALS OF COST ACCOUNTING IA
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