An Integrated Evaluation System for Budget Forecasting and Operating Performance with a Classified Budgeting Bibliography

Planning may be described as the process of developing a strategy for changing or responding to changes in one's environment; however, few responses can be made instantaneously; most require lead time. For example, a firm must plan the size of its sales force, funds, plant capacity, etc., since they cannot be significantly changed overnight. Accurate forecasting is important because critical and irrevocable present actions depend upon such forecasts. Even where effective instantaneous response is possible, it is often more efficient to select the eventual response prior to the actual event.