ASSIGNMENT MATERIAL MyAccountingLab Questions 6-1 What are the four elements of the budgeting cycle? 6-2 Define master budget 6-3 "Strategy, plans, and budgets are unrelated to one another." Do you agree? Explain. 6-4 "Budgeted performance is a better criterion than past performance for judging managers." Do you agree? Explain. 6-5 "Production managers and marketing managers are like oil and water. They just don't mix." How can a budget assist in reducing conflicts between these two areas? 6-6 "Budgets meet the cost-benefit test. They force managers to act differently." Do you agree? 6-7 Define rolling budget. Give an example. 6-8 Outline the steps in preparing an operating budget. 6-9 "The sales forecast is the cornerstone for budgeting." Why? 0 6-10 How can sensitivity analysis be used to increase the benefits of budgeting? 6-11 Define Kaizen budgeting. 6-12 Describe how nonoutput-based cost drivers can be incorporated into budgeting. 6-13 Explain how the choice of the type of responsibility center (cost, revenue, profit, or investment) affects behavion 6-14 What are some additional considerations that arise when budgeting in multinational companies? 6-15 "Cash budgets must be prepared before the operating income budget." Do you agree? Explain