1. What are the three major objectives of budgeting? 7. Why should the production requirements set forth 2. Briefly describe the type of human behavior problems in the production budget be carefully coordinated that might arise if budget goals are set too tightly. with the sales budget? 3. What behavioral problems are associated with setting 8. Why should the timing of direct materials purchuses be a budget too loosely? dosely coordinated with the production budget? 4. What behavioral problems are associated with 9. a. Discuss the purpose of the cash budget. establishing conflicting goals within the budget? b. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first 5. Under what circumstances would a static budget be two months, how might the excess cash be used? appropriate? 10. Give an example of how the capital expenditures 6. How does software aid firms in the budgeting process? budget affects other operating budgets. 1. What are the three major objectives of budgeting? 7. Why should the production requirements set forth 2. Briefly describe the type of human behavior problems in the production budget be carefully coordinated that might arise if budget goals are set too tightly. with the sales budget? 3. What behavioral problems are associated with setting 8. Why should the timing of direct materials purchuses be a budget too loosely? dosely coordinated with the production budget? 4. What behavioral problems are associated with 9. a. Discuss the purpose of the cash budget. establishing conflicting goals within the budget? b. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first 5. Under what circumstances would a static budget be two months, how might the excess cash be used? appropriate? 10. Give an example of how the capital expenditures 6. How does software aid firms in the budgeting process? budget affects other operating budgets