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Why is forecasting important to an organization?

Why is forecasting important to an organization?
As a division manager at Abel Athletics, you are expected to work with the Finance Department to develop financial forecasts for your division. Prepare a document that explains why forecasting is important to an organization.

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Questions:

  1. Explain the forecasting process, compare, and contrast it to the budgeting process.
  2. Discuss the role of projected or forecasted (pro forma) financial statements in the budgeting process.

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