Financial forecasting, an essential element of planning, is the basis for budgeting
activities and estimating future financing needs. Financial forecasts begin with
forecasting sales and their relating expenses.The statistical methods of forecasting sales include:
(a) time series analysis (b) exponential smoothing (c) regression analysis (d) box Jenkins
method.
Quantitative techniques help in the detail classification & analysis of cost and close
estimates of economic resources for the purpose of determine possibilities of
profitability, productivity, controllability and responsibility using techniques like CVP,
ABC and others.This helps in cost reduction that creates a framework for effective forecasting and
budgeting. Projection is a critical part of the ... SWOT analysis resulting from strategy
and tactical plan within the budgeting process. Businesses cannot operate effectively
without estimating the financial implications of their strategic plan and monitoring their
progress through out the year.During budgets preparation, managers are required to make resource allocation
decisions and, as a result, to reaffirm their core operating strategy by requiring each
business unit to justify its part of the overall business plans.Budgetary control is a management tool that manifests limitation and control over the
scarce economic resources through...variances of actual results from expectations
serves to direct management... on actual adjustment needed to retain their viability.SLICOM is a quasi government institution-receiving subvention from Government to
help discharge its functions. Budgeting from the public sector follows patterns lay done
by the Government Budgeting and Accounting Act 2005(GBAA) and guidelines from
the Medium Term Expenditure Framework (MTEF).In generating realistic financial plans, SLICOM follows the Insurance Act 2000 fund
requirements and GBAA. SLICOM Follows a dual approach budgeting by estimating