1. Describe the planning phase of budgeting. 2. Describe the control phase of budgeting. 3. Refer to "Business in Action 6.1" Describe two characteristics that make budgeting difficult for multinational companies.Business in Action 6.1 Challenges of Budgeting for International Operations Companies with operations in several different countries, called multinational companies, face numerous challenges in establ operating budgets. Most experts agree that foreign exchange rates have the biggest impact on budgeting for multinationals. S exchange rates are used when the budget is established. However, these rates can fluctuate significantly and are likely to when companies compare actual results with the initial budget. This makes the budget control process difficult because exc rate variations might cause the differences between actual results and the budget. Exchange rate fluctuations, along with other market characteristics-such as economic uncertainty and unpredictable gover activities-make budgeting for multinational companies a challenging task.4. Why do successful companies tend to use the bottom-up approach to budgeting? 5. Briey describe the componen of a master budget for a manufacturing organization. 6. Why is the sales budget the most important component of the master budget]II 1 Describe the information used by companies to estimate sales EL Describe hour units to be produced is calculated in the production budget. 9. How does a production budget help the production manager plan for the future\"?I 10. Why is depreciation deducted at the bottom of die manufacturing orerhead budget? 11. Why do companies drat prepare a budgeted income statement also prepare a cash budget? 11 How does the master budget for a merchandising organization differ from the master budget for a manufacturing organi'i 13. Describe the difference between service organization budgets and manufacturing organization budgets. 14. Refer to "Business in Action 6.2" Describe the two procedures that the symphony uses in the control phase of budgeting.Business in Action 6.2 Budgeting at a Not-for-Profit Organization Yearly, a small not-for-profit symphony in California establishes an operating budget with revenues totaling $200,000. The symphony's treasurer oversees the budget committee, which is made up of three board members. The budget committee is responsible for creating, approving, and monitoring the budget. The budget committee begins the budgeting process by reviewing information from the year before. All board members and office staff are given spreadsheets showing last year's results and are asked to provide input for the next budget period. For example, the committee responsible for ticket sales estimates sales revenue based on expected ticket sales times the average sales price. Anticipated increases in sales price are considered in the sales budget. Expenses are also budgeted based on last year's actual results. Those requesting increases in budgeted expenditures must justify them. Once revenues and expenses are established for the next budget period, the bookkeeper enters the information using QuickBooks software and prints a preliminary budget report, which the budget committee reviews. Once the budget committee has balanced the budget, reviewed it for reasonableness, and approved it, it goes to the board of directors for approval. The control phase of the budgeting process requires that all expenditures be in accordance with the budget. Any expenditure exceeding the budget by more than $25 must be approved by the board of directors. A financial report comparing actual revenues and expenditures with budgeted revenues and expenditures (produced using QuickBooks software) is submitted to the board of directors monthly.15. Describe the ethical conflict that can occur between the planning and control phases of the budgeting process. 16. Why might a sales budget that intentionally underestimates sales have a negative impact on the organization