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Annual Operation Planning (AOP) A detailed projection of all estimated income and expenses based on forecasted sales revenue during one year to identify, communicate and monitor progress on key priorities for the year that advance the strategic plan
the forcecasting is a planning tool that helps management in its attempts to cope with the uncertainty of the future, relying mainly on data from the past and present and analysis of trends for more than one year.
AOP is the game plan for the coming12 months. Who is going to do what and when and performance measures. Forecasting is one of the inputs to AOP. It represents the expected demand for your products/services. AOP represents the supply plan of the expected demand.
Annual Operation Planning (AOP) A detailed projection of all estimated income and expenses based on forecasted sales revenue during one year
as for as my understanding about this topic
Annual Operational Planning means plan to perform the variance analysis of actual with forcasted figures and fixed the limits or tolrate limt of these variance from focasted figures.
Foracsting is the technique to prepare the profrma finacial statements for the next period it could be the one year or3 to5 years.
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The annual operational planning = the year budget.
The forecasting is the technique to prepare the budget if the company new established (no historical data)and also to set the target of seals and revenue more over to built the projection or business plan.
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 differenct from a forecast in the sense that the plan, and therefore the budget, sets minimum requirements, whereas forecast is usually an expectation of what is likely to happen.
AOP is the planning of the operating activities of the company based on its sales budget. Forecasting is the technique used in planning.
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