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:

Manufacturing Overhead

All manufacturing costs that are not directly attributable to the finished product, including indirect labor, materials, and other expenses.

Estimated Total

An approximation of the sum or magnitude of a particular set of values or items, projected from sample data or generated through analysis.

Unit Product Cost

The total cost (both variable and fixed) associated with producing one unit of a product.

Total Job Cost

The sum of all costs assigned to a specific job, including materials, labor, and overhead.