The Difference Between a Financial Forecast and a Financial Projection

question 35

True/False

The difference between a financial forecast and a financial projection is that a forecast provides information on what is expected to happen, while a projection provides information on what might take place but is not necessarily expected to happen.

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Definitions:

Production

The process of creating goods and services, involving tasks such as design, raw materials sourcing, and manufacturing.

Standardization

The process of establishing common standards within an industry to ensure that products and services are consistent and compatible.

Contract Manufacturer

A company hired to produce goods on behalf of another company, under the hiring company's brand name.