$1.$ Define the term budget. How are budgets used in planning?

$2.$ Define control. How are budgets used to control?

$3.$ Explain how both small and large organizations can benefit from budgeting.

$4.$ Discuss some reasons for budgeting.

$5.$ What is a master budget? An operating budget? A financial budget?

$6.$ Explain the role of a sales forecast in budgeting. What is the difference between a sales

forecast and a sales budget?

$7.$ All budgets depend on the sales budget. Is this true? Explain.

$8.$ Why is goal congruence important?

$9.$ Why is it important for a manager to receive frequent feedback on his or her

performance?

$10.$ What is participative budgeting? Discuss some of its advantages.

$11.$ A budget too easily achieved will lead to diminished performance. Do you agree?

Explain.

$12.$ Explain why a manager has an incentive to build slack into the budget.

$13.$ Discuss the differences between static and flexible budgets.

$14.$ Explain why mixed costs must be broken down into their fixed and variable components

before a flexible budget can be developed.

$15.$ What is the purpose of a before$-$the$-$fact flexible budget? What is the purpose of an

after$-$the$-$fact flexible budget?

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