1. Why is it important that governments and not-for-profits coordinate their processes for developing appropriations budgets with those for developing capital budgets?

2. Why may flexible budgets be more important to a governments business-type activities than to its governmental activities?

3. What is the main advantage of an object classification budget? What are its limitations? How do performance budgets overcome these limitations?

4. Why do most governments and not-for-profits budget on a cash or near-cash basis even though the cash basis does not capture the full economic costs of the activities in which they engage?