1. Explain why companies create budgets. What is the importance of them and how do budgets help businesses be more successful? Provide at least three examples of the benefits of budgets.
2. Variances exist between budgets and actual results. What are some reasons for DM and DL variances? How can companies improve their unfavorable DM or DL variances?
3. Do you believe in household budgets for yourself and do you think budgets are helpful to stay on track so one doesn't overspend? Do you ever compare the amount of money you make (your revenue) with how much money you spend (your expenses) to confirm you're staying within your budget (living within your means)? What are some personal spending variances that may (could) exist from month to month with regards your expenses (like car insurance, gas, rent, food, cell phone, utilities, etc.). If you don't have a budget system, or you don't compare what you bring home with what you're spending, why might it be important to do so in the future?