Exercise 20-2 Budget definitions LO C1 Select each of the terms with the best description of its purpose. Definitions Terms 1. Approach in which top management passes down a budget without employee input. 2. Management's use of budgets to see that planned objectives are met. 3. A plan showing units to be sold; the usual starting point in the master budget process. 4. A budgetary cushion used to meet performance targets. 5. Budgets that are revised by adding a new quarterly budget to replace the quarter that just elapsed. 6. A report that shows predicted balances of assets, liabilities and equity at the end of a budget period. 7. Shows the number of units for a manufacturer to produce in a period. 8. A report that shows predicted revenues and expenses for a budgeting period