1- What are the reasons for and benefits of budgeting.

2- What is the concept of using budgets for variance analysis and strategy.

• How are budgets used to evaluate performance (i.e. variance analysis)?
• How can and should management use variance analysis for strategic purposes?

3- How would a company be affected by budget strategy based on personal goals rather than budgeting based on current and future market analysis?

• How might this affect sales dollars, sales volume, and profits?What would be the impact of these budgeting decision on the corporation's plans for future financing, production volume and capacity (both short term and long term).