The controller of Lueptow Company was talking with a vice, president of Caponi Corporation. ''With a small firm like mine, ifs hard enough to take care of the day-to-day operations without having to spend large amounts of time planning for the future. We have some idea of what will happen next year, but we cannot afford to devote our resources to prepare formal budgets."

"I disagree," said the vice president. "We don't put much time into budgeting, but even a poor budget is better than none at all. But I think planning beyond a year ahead is a waste of time. No one can make predictions that far in advance." Evaluate the comments of the two individuals.