1. What are the objectives of budgeting To provide consistent control tools for managers that act autonomously To provide a basis for a fair reward of managers for their efficiency To establish targets, norms and limits for operations To prevent employees from using company resources

2. The following should be done to plan in CF budget payments to suppliers of raw materials: Fixed overheads of procurement department must be calculated Sales manager should create a sales plan in units Sales prices and discounts should be defined for the client groups Production plan in units should be created for the budgeted period