Reference no: EM132510227

While sitting at an outdoor cafe in Queenstown, watching your Managerial Accounting videos, an individual walks up and engages in conversation with you.

• "Hello - I couldn't help bu overhear that you are studying managerial accounting. I took that same class. I remember a few things from it.
• One - answering 'it depends' will get you out of any jam in that course. It's always true.
• Two - it seems like everything is a bit over-simplified. In particular, "linearity" always seems to be an assumption. PVC analysis - or whatever that was - involved an "everything is linear" assumption.
• And that whole budgeting thing - I recall that being quite linear as well. You started at the beginning - sales forecasts (or whatever) . . . and when you came to the end of the whole budgeting process, you stopped."

Question 1: Pondering this, you decide to engage in a conversation with this person.

Question 2: Write brief statement regarding his/her suggestion of budgeting as a "linear process."

Question 3: Feel free to agree or disagree with the individual, and provide reasoning that supports your position.