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1-Explain the relationship between the management functions of planning and controlling costs.
2-Briefly explain at least 3 ways in which a business may expect to benefit from preparing a formal budget.
3-Critize the following quotation: "At our company, bedgeted revenue is set so high and budgeted expenses so low that no department can ever meet the budget. This way, department managers can never relax; they are motivated to keep working harder no matter how well they are already doing"
4-Identify at least 5 budget or schedules that are often included in the master budget of a manufacturing business.
5-List in logical sequence the major steps in the preparation of a master budget.
6-Why is the preparation of a sales forecast one of the earliest steps in preparing a master budget?
7-What are responsibility budges? What responsibility centers would serve as the basis for preparing resonsibility sales budgets in a large retail store such as Sears or Nordstorm?
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