Consider the following statements: 1. A budget is a type of forecast. 2. Setting budgets is the role of the finance function. Which of these statements is/are correct?
Understand the Problem
The question is asking whether the provided statements about budgets are correct. Specifically, it evaluates if a budget is a type of forecast and if setting budgets is a role of the finance function.
Answer
Both statements are correct.
The final answer is both statements are correct.
Answer for screen readers
The final answer is both statements are correct.
More Information
A budget is a financial plan and is related to forecasting, but not exactly the same. However, in common usage, budget setting involves forecasting future needs. The finance department typically sets budgets as part of their planning and financial management roles.
Tips
It's important to note that while a budget involves planning future financial conditions, it is distinct from a forecast, which projects future trends based on data.
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