Use this list of terms to complete the sentences that follow.

Long-range plans Participative budgeting Sales forecast Operating budgets Master budget Financial budgets 1 _____________ establish goals for the company’s sales and production personnel.

2 The _____________ is a set of interrelated budgets that constitutes a plan of action for a specified time period.

3 _____________ reduces the risk of having unrealistic budgets.

4 _____________ include the cash budget and the budgeted balance sheet.

5 The budget is formed within the framework of a _____________.

6 _____________ contain considerably less detail than budgets.

AppendixLO1