Rank the following in order of their reliability as sources of budget information, and explain why you have assigned each item its rank in the list.
Last year's numbers.
Estimates (educated guesses).
Probable actual expenses.
Non-competing, similar companies.
Company personnel (below executive level).
6) Wild guesses-Budgeting requires written facts, not just hear say.
2) Last year's numbers-Provide some good information for this year's budget (e.g. projected cash flow, ...
Budget information can come form a variety of sources. Those sources sometimes have priorities from the most important to the least important.