4. Why do successful companies tend to use the bottom-up approach to budgeting?

5. Briefly describe the components of a master budget for a manufacturing organization.

6. Why is the sales budget the most important component of the master budget?

8. Describe how units to be produced is calculated in the production budget.

9. How does a production budget help the production manager plan for the future?

11. Why do companies that prepare a budgeted income statement also prepare a cash budget?

12. How does the master budget for a merchandising organization differ from the master budget for a manufacturing organization?

15. Describe the ethical conflict that can occur between the planning and control phases of the budgeting process.