1. What are three purposes of budgeting? 2. What are the purposes of a master, planned operating, and financial budget? 3. How does the management by exception concept relate to budgeting? What are five basic principles which, if followed, should improve the probability of preparing a meaningful budget? Why is each important? 4. What is the difference between an imposed budget and a participatory budget? 5. Define and explain a budget variance. 6. What are the two major budgets in the master budget? Which should be prepared first? Why? 7. Distinguish between a master budget and a responsibility budget. 8. Management must make certain assumptions about the business environment when preparing a budget. What areas should be considered? 9. Why is budgeted performance better than past performance as a basis for judging actual results? 10. Describe the concepts of just-in-time inventory systems and zero-base budgeting.

1. What are three purposes of budgeting? 2. What are the purposes of a master, planned operating, and financial budget? 3. How does the management by exception concept relate to budgeting? > What are five basic principles which, if followed, should improve the probability of preparing a meaningful budget? Why is each important? 4. What is the difference between an imposed budget and a participatory budget? 5. Define and explain a budget variance. 6. What are the two major budgets in the master budget? Which should be prepared first? Why? 7. Distinguish between a master budget and a responsibility budget. 8. Management must make certain assumptions about the business environment when preparing a budget. What areas should be considered? 9. Why is budgeted performance better than past performance as a basis for judging actual results? 10. Describe the concepts of just-in-time inventory systems and zero-base budgeting