4. a. The information gathered to make a budget generally comes from a

number of sources. List some of them

b. how to ensure the objectives of operating

budgets are clear and consistent with organisational aims and projects.

c. how to ensure the objectives of financing

budgets are clear and consistent with organisational aims and projects.

d. Why is it important to ensure budget objectives are clear and consistent

with organisational aims and project?

5. A set of policies and procedures must be created to set up the framework for

the development of the budget and financial plans. What should the policy

framework identify? List some points.

6. Depending on the size and complexity of the operation there can be many

stakeholders in the budget setting process. Discuss, in a short paragraph, at

least two stakeholders that may be involved.

7. What are the reasons that causing your budget to be rejected or cut to some

extent? List some reasons.

8. Reaching a consensus is the goal with any negotiation whether it be

internally or externally. What should you consider when entering the

negotiation process? Describe eight considerations.

9. You have been asked to prepare the annual budget for a small business,

however, the review process results in your draft budget plan being

rejected due to your management's desire to cut costs. They have targeted

discretionary costs such as travel, conference and advertising costs because

the fixed costs cannot be changed. In addition, they also ask you to explore

areas of opportunity to cut costs in both goods and/or the freighting of goods.

What should you do? (Hint: You may need to consider which departmental

managers you may negotiate, and what matters you should negotiate with

them.)

10. What is the benefit of effective negotiation?

11. a. What is a milestone in budgets?