As a manager in a business, you have to make many decisions on how budgeting takes place. If you had a choice in a company where you are a manager, would you use top-down budgeting or bottom-up budgeting? Explain why.

Why do managers need to understand product and period costs? In your explanation, please also briefly describe product and period costs, along with their differences.

Question 1: Firestone Tire Co. has gotten an order for its manufacturing business segment of 25,000 tires. Using job order costing, figure out the total unit cost of manufacturing a tire and the total order. Rubber in one tire: 8 pounds of rubber Cost per pound of rubber: $1.50 Steel used in tire: 2 pounds of steel Cost per pound of steel: $2.50 Payroll cost per hour: $15 per hour Amount of time processing rubber: 5 minutes per pound of rubber Amount of time molding and making tire: 20 minutes per tire What is the product cost of producing one tire and the entire order? Question 2: Go to the following website and read the article about budgeting in a small business. The article talks about six basic steps to a better business budget. Write a paragraph about whether you agree or disagree with these steps. Be sure to address each individual step in your response. http://www.investopedia.com/articles/pf/08/small-business-budget.asp Question 3: Search on the internet for Pro-forma financial statements of any large public company from last year (e.g. Coca-cola, Home Depot, etc). Compare these to the results by looking at the actual financial statements. Many times, the companies will list how they performed compared to their estimates. Write a paragraph about the expectations the company had along with how they actually did. In addition, elaborate on why you think they did or did not meet their expectations.