Assessing the environment, sometimes called an environmental scan, is an early part of the budgeting process.

True

False

Which of the following are tasks that the department heads should engage in, in order to develop a realistic expense budget for the following year? (Select all that apply.)

Calculate annual cash flow.

Estimate the expected volume of service or units in the following year.

Identify staffing pattern changes.

Perform the variance analysis.

Check equipment and estimate cost of repair or replacement.

Identify anticipated change in volume of supplies and other expenses.