What is the difference between forecast and prediction?

Answer 1

Difference between Budget and Forecast

Once the financial objectives have been set, it is possible to prepare and agree a budget. A budget should relate the overall plan in figures. It is different from a forecast in the sense that the plan, and therefore the budget, sets minimum requirements, whereas a forecast is usually an expectation of what is likely to happen.

Example:

You might choose to budget for sales of £180,000 and use this figure in calculating your likely expenditure, profit and so on. Based on your market research, however, you predict sales of £200,000, and set a target of £220,000, in order to stretch your sales force. If all your costs are covered by the budgeted figure, then you will make a greater profit if you achieve the forecast and a still greater one if you achieve the target. (Whilst this is an important distinction, in practice for most businesses the forecast and budget will be the same.)

Answer 2

Financial forecasting considers variables like how your dollar and spending power will be effected by interest rates, the price of goods and services, etc in the future.

Budgeting is more "real-time' dealing with the practical world... your capital and your financial goals.

I got this answer from Yahoo answers

Rahil Farooq Khan

Budgeting is (now) working expenses/G&A into the sales dollars generated for the budgeting period at hand. Forecasting is (looking) into the future to forecast sales and expenses.

Answer 3

Forecasting is done basically on the past data and prediction is just a guess. The prediction may go wrong but the chances of forecasting to fail is little less. Eg. Prediction of fate and forecasting the rainfall.

Answer 4

Forecast is made on basis of past sales and forecasting I don't know