4.1 You are required to critique the statement above. (4 marks)

Budgets are half used if they serve only as a planning device.

4.2 Outline to your friend some factors that the management of her company may have taken into account to forecast sales. (5 marks)

Your friend, who works for a company selling household appliances, recently told you that she finds it amazing that the company seems to forecast sales each year so well. She cannot explain how it is able to do it.