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1. What is the difference between a forecast and a budget?
A budget is backwards looking and a forecast is forwards looking.
The budget is a plan and the forecast is reality.
A budget is a forecast made at the beginning of a year or the beginning of a project.
2. When is it appropriate to use the straight-line method for expense forecasting?
The straight-line method is appropriate for functional department activities of a limited scope or duration.
The straight-line method is appropriate for functions or departments where the spending is level-loaded.
The straight-line method is appropriate for project activities when a project is ahead or behind schedule.
3. What forecasting method is most appropriate during the final stages of a project?
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