1) What is the first budget that should be done and why?

2) Budgetary control is the use of budgets in controlling operations. What are the steps in budgetary control?

2) What is a static budget? Whys is a static budget is an appropriate basis for evaluating a managers effectiveness in controlling costs?

4) List the steps in preparing a flexible budget?

5)Responsibility reports differ from budget reports in two respects? State and explain each one.

6) There are three types of responsibility centers. Please list and define what each center does?

7) What costs are included in a performance report for a cost center?

8) What is a Controllable margin? What is the purpose of controllable margin?

9) What is the primary basis for evaluating the performance of the manager of an investment center? How is it calculated?