1. Define \"Fixed Costs and \"Variable Costs. . List and define the steps required in the development of budgets process. b2 3. Distinguish between a static and flexible budget. Your answer should explain the difference between a fixed and variable expense. 4. Identify when a potential conflict of interest may cccur during the budgeting process. 5. Define financial risk and identify strategies that an crganisation could put in place to overcome unforeseen events. 6. As part of the budget preparation process you have been asked to forecast the electricity costs for the business for the next financial vear.(a) What forecasting tools would you vse to assist in this process. (b) Undertake some research, and advise a forecast range that is supported by this research. (Provide details of the research resources vou have used) (c) Assuming your forecast 1s accepted and implemented in the budget, how would review the accuracy of your forecasts. 7. (a) Identify a tool that is useful in analysing the effects of the external environment on a budget. (b) What external factors does this tool analyse for potential effects on a business' budget? (c) How might these factors affect the budget? 8. Jones Pty Ltd has decided it needs to formalise the process for monitoring the budgets. It has the expectation that fizures need to be available to staff for review on business day two of the following month, and that the monitoring process, including agreement on corrective action needs to be completed by business day 7 of the following month. Prepare a timeline to undertake budget review process for Jones Pty Ltd. This should commence with the preparation of figures and continue through to implamentation of corrective action