Need a response to the following discussion post….. A Classical forecasting bu
Need a response to the following discussion post…..
A Classical forecasting budget and a rolling forecast process are two budget types that can be seen inside many organizations. A classical forecasting budget is when companies make annual budgets based on their fiscal year projections (Raye, 2016). One pertinent thing to remember about classical forecasting budgets is that, for the most part, once a budget is set for the year, it cannot be changed. On the other hand, a rolling forecast budget process can be defined as a projection into the future, partly based on past performance, routinely updated to incorporate input and information reflecting changing market, industry, and business conditions ( (Wolf, 2019). One significant similarity between the two types is that they look to past budgets to help them create the future budget. It leads me to one of the most significant differences between the two budgeting process types and how long the budgets plan. A classical forecasting budget plan for the immediate year and only that. Once that year is over, it is time for a completely new budget. However, a rolling forecast budget will plan for many years ahead and constantly changes year by year. It is one of the main differences between the two. Once a classical forecasting budget is made, it is set and, for the most part, cannot be changed. However, a rolling forecast budget process always changes and is a more flexible option for businesses and medical facilities. The main advantage of this is that it is adaptable and can change when needed. However, classical forecasting also has its positives, one being that it gives the facility stability, with the knowledge they are funded for the whole fiscal year.
References:
Raye, K. (2016, October 26). What Is the Difference Between a Budget & a Rolling Budget? Small Business – Chron.com. https://smallbusiness.chron.com/difference-between-budget-rolling-budget-65435.html.
Wolf, K. (2019). Why It’s Time to Say Goodbye to Traditional Budgeting. AMA. https://www.amanet.org/articles/why-it-s-time-to-say-goodbye-to-traditional-budgeting/.
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A Classical forecasting bu appeared first on homework handlers.


