Chapter 6 covers Master Budget and Responsibility Accounting;

1. What is the master budjet, and why is it useful?
2. When should a company prepare budgets? What are the advantages and challenges of implementing budgets?
3. What is the operating budget, and what are its components?
4. How can managers plan for changes in the assumptions underlying the budget and manage risk?
5. How do companies use responsibility centers? Should performance reports of responsibility center managers include only costs the manager can control?
6. Why are human factors crucial in budgeting?
7. What are the special challenges involved in budgeting at multinational companies?